Income supplement to be provided ‘for as long as it is needed’

Income supplement to be provided ‘for as long as it is needed’

The Executive Council (ExCo) has concluded discussions on extending the temporary income supplement scheme, giving the government the green light to continue providing a subsidy to eligible permanent residents earning less than MOP5,000 a month.
ExCo’s spokesperson, Leong Heng Teng, told a press conference yesterday that the government has forecast that it will spend MOP37 million with these subsidies this year. In 2014, the government spent over MOP27 million with the income supplement scheme, which was implemented as a temporary measure back in 2008.
Currently, the scheme covers mostly middle-aged (around 40 years old) permanent residents whose salaries are lower than MOP5,000. The government gives extra financial support to these residents by making up the difference between their salary and a MOP5,000 ceiling.
The Secretary for Economy and Finance, Lionel Leong, said this week that the government is looking into putting the minimum wage into place in other labor sectors within three years. Currently, a bill introducing a minimum wage for cleaners and security guards employed by property management companies is under discussion by a Legislative Assembly Standing Committee, after passing its first reading.
Yesterday, Leong Heng Teng hinted that once the universal minimum wage is in place, the income supplement scheme will no longer be needed. “From my point of view, once there’s a legal framework ensuring a minimum wage, the scheme’s mission is completed because employees facing economic difficulties also have access to [extra financial] support from government entities, such as the Social Welfare Bureau.”
Nevertheless, Mr Leong stressed that, “the income supplement [scheme] will be provided as long as there are people who need it.”
Last year, an average of 1,294 residents were covered by this scheme in each quarter. About 80 percent of those provided with an income supplement worked for the manufacturing industry, or provided cleaning and security services for property management companies.
Eligible applicants should work at least 152 hours per month, except residents working for the textile industry, who are only required to work 128 hours per month in order to be eligible for the scheme.
The ExCo has also concluded discussions on revising some of the Economic Development Committee’s duties and rules. The upcoming changes will extend the committee’s duties to presenting proposals and deliberations on the diversification of Macau’s economy. The Chief Executive will also be able to appoint experts and scholars, either from Macau or overseas, to provide consultancy services to the committee. The new rules come into force on April 9.  CP