Lawmaker urges bigger upfront incentives to help CSSA recipients return to work

The government should offer stronger financial incentives in the early stages of employment to encourage Comprehensive Social Security Assistance recipients to return to work, labor-sector lawmaker Chow Siu-chung said.

His remarks came as the government launched a pilot scheme to help CSSA households transition to the Working Family Allowance Scheme.

Speaking on a radio program, Chow said the Social Welfare Department had long sought to encourage CSSA recipients to rejoin the workforce, but the results had been limited because the financial incentives were insufficient.

While supporting efforts to help recipients become self-reliant through stable employment, Chow said the income gap between welfare payments and earnings from low-paid work could discourage some recipients from taking up jobs.

He cited a two-person CSSA household receiving nearly HK$13,000 a month as an example.

To qualify for the transitional allowance, a recipient would need to work 192 hours a month, earning about HK$8,200 at the minimum wage, he said.

Even after taking the allowance into account, the monthly amount would remain below HK$10,000, meaning some recipients could see little financial incentive to move from CSSA into employment, Chow added.

He suggested restructuring the scheme so that larger cash incentives would be provided in the earlier years of employment — for example, HK$20,000 in the first year and HK$15,000 in the second — before gradually decreasing.

Chow acknowledged that such an arrangement could create another challenge, as some recipients might work for a year to obtain the higher payment before leaving their jobs.

Nevertheless, he said the scheme, which is funded by the Community Care Fund, should be refined to provide stronger incentives and help CSSA recipients make a smoother transition into the workforce.

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