No income subsidy raise despite inflation

2012-03-02
From: Macau Daily Times

Despite high inflation the maximum amount of the income subsidy scheme aimed at helping permanent residents with a low salary will remain unchanged at MOP 4,400 this year, the Executive Council announced yesterday.
The scheme introduced in 2008 allows low-earning workers to receive a subsidy, so that their income reaches MOP 4,400. A year ago the maximum amount was updated from MOP 4,000.
But there will be no increase this year, even though inflation has reached almost six percent in the last 12 months. There are other measures launched by the government to alleviate low-income earners living pressure, Executive Council spokesperson Leong Heng Teng said.
The measure was renewed for its fifth year but it remains provisional. Asked if the government was considering to make it a permanent scheme, Leong said authorities believe its necessary to maintain this measure.
The spokesperson stressed there are still workers receiving a relatively small salary. The government has kept an eye on it and thats why there are these policies, he added.
At the end of last year there were 35,600 workers non-residents, permanent and non-permanent residents making less than MOP 4,500 in Macau, about 10.5 percent of the total population. In 2011 about 9,000 people saw their income rise above this threshold.

Minimum wage

The Small and Medium Enterprises Association has argued that the income subsidy scheme is more effective than a minimum wage. But the Macau Federation of Trade Unions warned that some employers abuse it by intentionally cutting workers salaries.
In 2010 the Financial Services Bureau revealed that in the previous two years 18 beneficiaries cancelled their application after an inspection team was sent to check the cases. A further 17 were forced to return their subsidies a total of MOP 410,000 after their applications were found to be false.
The standing committee for coordination of social affairs has commissioned to the University of Macau a study on the extension of the minimum wage for all building security and cleaning workers.
Asked if the government would maintain the income subsidy until a citywide minimum salary is enforced, Leong merely admitted that the council also took into account the ongoing works over a minimum wage.
Last year the Administration spent a record high MOP 35 million on the income subsidy, which was granted to 7,901 permanent residents. A further 393 workers are still waiting for their request to be assessed, of which 34 are waiting since 2010.
But this year authorities expect to spend slightly less, about MOP 34 million. Salaries have been increasing so we expect spending on the income subsidy to be smaller, Leong explained.
Womens committee

In its first four years the scheme has cost the government a total of MOP 128.6 million and has helped more than 33,500 people who were at least 40 years old. The quarterly subsidy is allocated in April, July, October and January 2013.
Permanent residents who work for a minimum of 152 hours each month may be qualified to receive the subsidy. The working hour requirement drops to 128 for employees from the textile, garment and leather manufacturing industries.
Manufacturing industries accounted for more than half (59.3 percent) of the subsidy spending in the last four years, a total of MOP 76.3 million, but it includes just 43.9 percent of all beneficiaries.
Official data released in June 2010 also revealed that more than half of the 5,728 households still waiting to receive a public housing unit had asked for income subsidy, a total of 2,940. Also yesterday the Executive Council backed a revision of the bylaw that regulates the Womens Affairs Advisory Committee. The committee has in fact produced good results but after listening to a wide range of opinions we want to strengthen its works, Leong said.
The secretary for Social Affairs and Culture will replace the Chief Executive as the head of the committee and the president of the Social Affairs Bureau will become the vice-president. In addition the revised Womens Affairs Committee will be allowed to have as many as 35 members, up from 30, in order to include professionals and individuals of recognised social merit.

Copyright Macau Daily Times