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| DAB proposes capping the monthly loan repayment at no more than 30% of the FDW's salary (File photo) |
A lawmaker from the pro-Beijing Democratic Alliance for the Betterment of Hong Kong has called on the government to put a limit on the amount of loan that a foreign domestic worker can obtain from financial institutions, ahead of a public consultation on over-borrowing by helpers.
Edward Leung is proposing that the loan should be
based on the remaining period of a FDW’s two-year contract, and that the
monthly payment for it should not exceed 30 percent of her/his income.
"For
example, they have six more months left in their contract, and their monthly
income is HK$5,000, then HK$1,500 times six months will be the total amount
that they could borrow,” said Leung at a press conference Sunday.
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| PINDUTIN DITO |
This
means that a FDH earning the minimum allowable wage, and with six months left
in her contract could borrow a maximum of $9,000, or $18,000 for those who
still have a year to go. In either case, the monthly repayment should not be
more than $1,500.
Leung
said many employers and employment agencies that the group had consulted support
this proposal.
Apart
from legislating the amount that FDWs can borrow from lending companies, the
government should also step up publicity and education to better protect employers
and the workers.
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| Basahin ang detalye! |
The government
consultation on FDW borrowings set for the end of June was prompted by complaints
from a number of employers that they had been harassed and hounded by
collectors for loans obtained by their helpers, or previous helpers.
Leung
said the government should also require FDWs to attend a seminar on the issue
within eight weeks of their arrival in Hong Kong, to acquaint them about their
rights and the city’s laws.
FDWs from
the Philippines are required to attend a post-arrival orientation seminar shortly
after their arrival in Hong Kong but the dire consequences of over borrowing is
Just one of the topics discussed.
Excessive
borrowing has often been cited as the reason for many of the suicides or
criminal entanglements of migrant workers, including thefts and money
laundering.
