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Levy

  1. #1
    Hayzee is offline Registered User
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    Sep 2007
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    Mid Levels
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    Smile Levy

    We are going to terminate our 2 existing contracts and renew them in order to enjoy the $0 Levy for the next 2 years (keeping the same Helpers of course!). When we explained this to both our Helpers, they thought that we were going to pass on our savings to them! (They had obviously heard and read about all this levy cancellation news). And when we explained that it was for the Employers benefit to combat inflation etc, they acted upset and surprised that we were not automatically passing on the levy money to them!

    We struggle to make ends meet here and this is a huge saving for us. We have to put 3 little kids in school and this tax break is a huge relief for us.

    Did anybody elses Helper expect the money to go to them?

    Just wanted to see how many Employers will be actually passing the levy saving onto their Helper.

  2. #2
    Smiles is offline Registered User
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    I'm new to the whole helper thing but I would have though that unless you were making them pay the levy themselves (which you are not and I don't think you are supposed to anyway) whether the levy is cancelled or not would make no difference to them...

  3. #3
    elodienyc is offline Registered User
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    Mar 2008
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    Wanchai
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    Domestic Helper's minimum wages got raised by HKD100 to HKD3580 in July, at the same time they were discussing cancelling the levy. My helper told me that the government told Philippino helpers that their minimum wage was going to be increased gradually over the next two years in order for them to benefit from this tax break.
    Hope it helps...

  4. #4
    jane01 is offline Registered User
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    I didn't cut my helper's salary when the levy came in and have always paid her above the minimum wage. Therefore, I will not be increasing her salary when we benefit from this tax break.

    I'm really annoyed at how this tax break was implemented - we paid the levy in full on signing the contract and now won't enjoy any break until we renew the contract next May. Paying the levy 2 years in advance has certainly benefited the government - they've had the use of the $$ and interest thereon for a longer period. But we don't get a refund. We could have inconvenienced the government by paying in instalments, having to be chased for payment, etc. But we didn't. Very, very unfair !

  5. #5
    JadenLeigh is offline Registered User
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    hi hayzee..

    Can we actually do that?Breaking the contract of our DH and sign a new contract, just so we can save the levy?I myself, just hired my son's nanny,had paid the 2400 levy.Would be great it the government would just cancel all the levy.It would be a great help to us,parents.

  6. #6
    carang's Avatar
    carang is offline Registered User
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    just curious as to what you will tell immigration? if you break your contract you need to pay the severance pay, trip home, all the visa fees again etc.

    plus if you tell immig that you are breaking the contract due to financial difficulties, how can you then go and hire the exact same helpers back?

    i would think that the gov't has/will implement some form of safeguards against people doing just this.

    i'm not being critical, just genuinely curious. we won't enjoy the benefit until February next year. we just paid the levy last month....

    i think it might be more of a pain if you go through with it than if you just left the contracts in place. keep in mind if you don't provide all of the "stuff" with each contract (trip home etc) that your helper could then take you to the labour board as you have not fulfilled your obligations, whether or not you "had an agreement".

  7. #7
    Neha is offline Banned
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    I agree with Cara. I think u end up paying the same amount of levy in firing your DH and sending them back home, getting their visas and waiting for them to come back etc. I think more of a hassle. If u have just signed a contract then I can understand that u want to do that but if u are already half way through your contract then what is the point. Moreover if u have already paid the levy then the govt is not refunding you anything, so no point to firing and then hiring again

  8. #8
    shri's Avatar
    shri is offline Administrator
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    The Gov't has said that helpers who have been terminated do no have to return home and their visa renewals will be expedited if they renew with the same employer.

    "As a special arrangement to protect the interests of the FDHs, the Director of Immigration will exercise discretion during the suspension period and allow the advanced renewal of FDHs' contracts with the same employers without requiring FDHs to leave Hong Kong after the existing contracts have been terminated.

    http://www.lwb.gov.hk/eng/press/30072008.htm
    Last edited by rani; 08-05-2008 at 10:00 AM.

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