Press Release
16 July 2008

For reference:  Eni Lestari
                      Chairperson
                      Tel. No.: (852) 96081475

Suspension of levy: righting a wrong and unjust policy
FDWs says levy suspension marks intensified demand for its abolition and significant pay hike 

"It is high time to right a wrong and unjust policy. Though it has taken long to come, the suspension of the levy is a victory that shall mark our intensified campaign for its total abolition as well as for a significant wage increase for migrants."

This was declared by Eni Lestari, spokesperson of the Asian Migrants Coordinating Body or AMCB as the government announced today the two-year suspension of the HK$9,600 levy charged to employers of foreign domestic workers.

"FDWs have been firm in our demand to abolish the levy. Such a demand has been supported by local workers and even employers who are burdened by such a fee. Our efforts have paid off," she said.

In 2003, the levy was introduced at the same time as the minimum allowable wage of FDWs was cut by HK$400. According to Lestari, it meant that, indirectly, it was regressive taxation imposed to FDWs who are already one of the lowest-paid workers in Hong Kong.

"Since then, the collection of the levy has made a hostage of our wage. So as not to antagonize employers of FDWs who are mostly from the middle-class, the HK government has opted to implement minimal and staggered wage increase to FDWs despite the booming economy," she remarked.

Recently, the HK government has announced a HK$100 wage hike for FDWs. The AMCB said that such an increase was a mere token and was insufficient.

"Our wage has not yet recovered from the drastic cut five years ago. If we include the HK$190 wage cut of 1999, FDW salary has still a long way to go for it to even recover," she lamented.

Last Sunday, members of the AMCB as well as the International Migrants Alliance (IMA) marched through major thoroughfares in Central and ended at the Central Government Office (CGO) to denounce the hike which they said was "too little and too late."

Lestari said that the suspension of the levy should lead to the granting of a more substantial wage increase for FDWs.

"There is no more excuse for the HK government to deny the wage that is commensurate to the nature of our work, the hours we spend on our job, as well as to our needs. The benefits of HK's economic development must also be shared to FDWs who undeniably contributed a lot, as workers and consumers, to the boom that HK is enjoying," she added.

The group also demanded for the government not to dilly-dally anymore and finally abolish the levy. Lestari said that they will not settle for mere suspension that shall make them fear its implementation again after two year.

"However, this is still one big step for our fight. We shall pursue until the full rights of FDWs are upheld," she concluded.