Companies operating in Hong Kong warned that a new policy requiring HK and foreign workers on mainland contribute to China's social security fund may drive firms and individuals out of the country, reports the South China Morning Post.
According to the Post, under the Social Insurance Law passed in October, all overseas people who have worked on the mainland for more than six months will have to pay social security insurance.
Quoting business executives, the Post says the new policy, originally scheduled to come into force July 1, could push up operating costs and drive thousands of companies and professionals out of business.
"The policy lacks transparency; we no longer know what course to follow with all of these half-official rumours being spread around. I'm extremely annoyed," Tsui Li, managing director of a Hong Kong-based logistics firm, told the newspaper.
Implementation of the new policy has been delayed until final details have been ironed out. In the meantime, overseas employees can choose to pay into the mainland's social security fund on a voluntary basis.
MORE ARTICLES ON INSURANCE