Hong Kong study suggests tax of 1-2.5% for pension fund

Hong Kong’s impoverished elderly may find relief in a new plan proposed by a government-commissioned study Wednesday to provide a monthly pension of HK$3,000 to all citizens over 65 without a means test, South China Morning Post reported. The scheme recommends partly funding the pensions using a scaled salary tax ranging from 1-2.5% and exempting workers paid less than HK$6,500 a month. Currently the pension pool is expected to go into annual deficit from 2026, and by 2041 only about HK$13.5 billion will be left. Business interests raised objections, calling the proposal a huge burden for employers.