The two-year suspension of the obligation on employers of all imported labour - including foreign domestic helpers - to pay the employees retraining levy will be extended to five years, Secretary for Labour & Welfare Matthew Cheung says.

Mr Cheung said the Chief Executive-in-Council has made the extension decision today after reviewing the latest economic developments in relation to the financial turmoil, public views and the Employees Retraining Fund's financial condition.

"The further extension strikes the right balance between providing continued relief to the middle class and meeting the needs of our local workers for training and retraining services," he said.

The legislative amendment notice takes immediate effect upon gazettal today, and will be tabled at the Legislative Council for negative vetting tomorrow.

Levy policy

The levy suspension will apply to all employment contracts for which visas for the imported labour/foreign domestic helpers are issued by the Immigration Department from August 1 to July 31, 2013, including new contracts and renewal of existing contracts.

Mr Cheung stressed the Government's overall policy - that the Employees Retraining Board's operating expenses should be primarily met by the levy income, and that employers of low-skilled imported labour should contribute towards the training and retraining of the local workforce - remains unchanged.

"In the long run, levy collection is essential in ensuring steady and sufficient financial resources for the board to enhance the employability of the local workforce, to maintain Hong Kong's economic competitiveness," he noted.