Incentives Needed to Retain Elderly Workforce Amid Growing Poverty in Hong Kong
Poverty Solutions Require Employment Incentives for the Elderly
Hong Kong faces a pressing need for incentives to keep older residents in the workforce to combat growing poverty among the elderly. Experts reference Singapore and Japan as models, highlighting effective grants and laws that encourage employers to retain seniors beyond traditional retirement ages.
Challenges of an Ageing Population
- More than 1.39 million individuals live in poverty in Hong Kong, with 20.2% facing economic hardships.
- Over 580,000 seniors aged 65 and above are below the poverty line, a significant increase of 42.9% since 2019.
- Labour force participation rate among the elderly is stark at just 13.9%.
Existing Support Schemes
The current government programs, like the Employment Programme for the Elderly and Middle-aged, aim to incentivize companies to hire older individuals through financial support for training. However, policies fall short of sufficiently engaging the ageing population.
Recommendations for Improvement
- Offer tax concessions to encourage the hiring of elderly workers.
- Introduce allowance schemes for older residents who return to work.
- Implement successful strategies from Singapore's and Japan's aging support systems.
Learning from Global Models
Singapore’s labor force participation rate for seniors is significantly higher at 31.5%. Their structural policies offer various grants and tax-benefits for companies hiring older workers. In Japan, similar initiatives foster flexible work environments for elderly employees.
Adapting these models could help Hong Kong mitigate the challenges associated with its ageing society and support the economic infrastructure.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.