Levy

Mushi,

One of the first articles in the SCMP stated that employers who are paying by installment would not have to pay future installments, but according to the Gov't website, that's incorrect.

Employers of pre-existing contracts, i.e. contracts with visa granted before August 1, 2008, are required to continue to pay their levy as provided under the ERO. That said, they would be able to enjoy levy suspension for the new contract period when visas for contract renewal of their serving FDHs or for the hiring of new FDHs are granted at any point in time during the two-year levy suspension period.
 
Hi Rani when you say contracts with visa granted before August 1, 2008, does it mean when the DH arrive in HK or when the agent applied for the visa? As my new helper will be arriving within this week and I don't know whether I'm entitle to the levy waiver?! Thanks
 
My helper says that we just have to make a new application, with support letters. Apparently the government are dealing with the added influx of helper renewels by opening longer hours - though my helper says it can still take all day. So far, no mention of having to return home blah blah blah that usually happens when renewing a contract.
 
Hi
We hired our helper through an agency exactly one month ago. We paid the first Levy payment $2400. The lady from the agency called me yesterday and said that we can renew the contract so we don't have to pay any further levy payments. Our helper doesn't need to leave HK, she will carry on as normal but the date on her visa will be a new one.
The agency are charging us $1000 for their fee, this is fine with us as we don't want to be stood around for hours filling in forms etc. We are still saving a lot of money even after paying the agency fee.
We have decided to give our helper an extra bonus each month due to food costs etc.
So in the end we are all happy.
 
HappyMe,

I think the date is when you pick up the visa from immigration. You have to pay the levy then. Do you remember paying?

CWBMum, can you ask your agent, if you need to pay your helper severance/long service pay and give her the $ for a ticket home? Cos you are terminating the contract.
 
hi shri, i have heard that the govt is making some revision to this suspension clause to include levys that are being in installments and have not yet been pd....any idea on this? also what are the extra expenses one needs to pay for if contract terminated/re-done with same helper? just want to understand if it is better to re-hire or to continue paying the levy....thanks
 
On costs, it should come to around H$460 to terminate/rehire a helper from the Philippines. The HK govt will charge $160 for the visa processing and the Philippines consulate charges HK$297.50 to notarize the new contract. (This is if you do all the paperwork yourself. Agents will obviously charge a fee if you go through them.)

There is no need to factor in the costs of an airticket as the HK govt is allowing "deferred home leave" for early termination/rehiring so that under this "advanced contract renewal arrangement, helpers are not required to leave Hong Kong after the termination of the existing contract."

Info is posted on the govt website at this link:
http://www.immd.gov.hk/ehtml/fdh_acr.htm
 
Hi
Rani - Had a chat with my agency women, she said if you have had your helper for more than 4 years (2 contracts), wish to continue signing for her then its up to you if you pay severance pay now or later. The next new contract will be without Levy. If you have signed your helper again and are on the 3rd contract, say 3 months into it then you can renew the contract either yourself through the government or through an agent. I have chosen to go through agent as I am living far away from town and with two small children, don't fancy standing around for hours.
My helper does not have to return to the Philippines nor do we have to pay her for a air ticket.
I hope this helps - all new to this really as this is the first full time helper we have had and first time we have used an agency.
I am sure if you called any agency up they will be willing to explain it to you.
 
dear peainpod, thanks so much for giving us the cost....saves a lot of trouble....one more cost would be the return ticket to her home that u have to bear.....in the current arrangement we have to pay only one way....so that should be about $1000 extra....plus the $100 per month that u have to pay her .....what do u say? have u gone thru this process yourself? did yr helper manage to do all the paperwork? i don;t know why my helper is all worried about this/...how do i reassure her?
 
Hi Mushi, sorry I should have clarified that the situation I mentioned above ($460, no need for airticket) applies only if you rehire you current helper (i.e. advance contract renewal) and NOT if you fire the current one and hire a new helper. If you change helpers, then course you would have to pay for a ticket home for the old helper (and pay for the new helper's ticket as well).

I think it's quite straightforward to do the advance renewal yourself. You can downlaod all of the forms from the HK Immig at this link (except for the green contract which you need to get 4 orig copies from Immig - but yr helper will be able to do that. Most helpers keep a stock or can get from their friends).
http://www.immd.gov.hk/ehtml/fdh_acr.htm

If your helper is from the Philippines, then just download the express contract processing form from the consulate website, and then get your helper to bring it to the consulate together with 4 signed orig contracts to get it notarized.
http://www.philcongen-hk.com/labor/main.htm

Your helper can then take the notarized contracts plus all of the Immig forms and supporting docs to Immig tower in Wanchai to apply for her new visa.

My helper was a Direct Hire so I did all the documentation myself when I first hired her. The renewal process seems a bit simpler, and she can probably do all of the running around herself, without needing you to go.

Mushi, if your helper is confused/worried, I think she should talk to her friends on her day off. They have very good networks and I'm sure they can explain to her how to go thru the whole application process.
 
I am wondering for those who are terminating and rehiring the SAME helper, when are you supposed to allow her to take her end of contract 2 weeks holiday (assuming you plan to rehire her at the end of her contract). Do you let her take it at the time she completes her original contract term or the new one?
 
Had a couple of questions on the renewal please:

1) Do we have to provide the income proof and other personal information documents (employer information not DH information) again?

2) How long does everything take (1 day, 1 month, etc.) - if next levy payment is due on October 30, can we do everything in mid-October?

Thanks. :)
 
cwbmum,

thanks for checking with yr agent. we've just signed the 3rd contract with our helper and have paid the 1st installment. we're considering doing the early renewal and sharing the savings with her.
 
If we renew before the contract expires, heard that we need to bear the helper's medical check, visa fees, agency fees if going through an agency, annual leave owed if the helper do not take leave and the cost of a returned airfare since she does not have to return to Indonesia.

is this correct?
 
I checked with my agent yesterday and if you early terminate your helper's contract and rehire her on a new contract, you have to pay consulate fee, visa fee, amount equal to one way ticket back to where she is from, and annual leave accrued on the terminated contract.
 
Has anyone completed this process yet and can share their experience?

With the 'no need to pay for airfare' thing, isn't it true that when the govt say the helpers can stay in HK for the visa process, they are actually granting an extension of stay and the helper still has to go home within the first year of the new contract (deferred home leave)? So you still need to pay for the return airfare at some point, just not immediately?

I am confused as to how long all this 'express processing' etc actually takes. My main questions are:

1) At the Philippine consulate, they apparently have Express processing for 're-contracts'. Does this mean they do it at the time, over the counter, or does it still take 3 days to get the notarized contract? Does the employer have to be there?

2) The immigration website says "application will normally be finalised within the same day if all required documents are in order". Does this mean they actually grant the visa that day????

For us, our next levy instalment is due in December. However we are going on holiday in October and it would suit us to have our helper take home leave then.

I am not sure what my timing should be. I understand the lines at the Philippines consulate and immigration are pretty horrific at the moment, and I'm wondering if I can wait a month and do it then. My helper said she heard the consulate were only accepting applications this month. I think this must be wrong, but do they have a quota system or something?

Any help would be much appreciated!!!
 
my understanding from my agent is that when when you early terminate the contract, you still have to pay an amount equal to a one way ticket to Phil even though the govt has waived the requirement that the terminated helper has to immediately leave HK. Her HK visa will only be until the end of the first year of the new contract so at that point, she will have to leave HK and get it restamped when coming back to HK (from Phil, macau, or shenzhen etc....)
 
ok everyone, my helper just submitted our papers to the philippine consulate yesterday.....(this is for contract termination and renewal of contract with SAME helper)
1. there was a long queue and althogh the website says express processing of 3 days, we have been given a date of 2 WEEKS later.
2. costs would tptal to about $500 incl. visa fees and consulate charges.....no other expense is there.
3. one-way ticket expense has to be incurred (which was there in any case for us sine we hired her this feb)
4. extension of stay upto one year is possible
5. she can continue to work with u till the new contrcat is done.
6. u can apply for this re-contract one month before payment of next levy date or within 15 days after levy date.

anything else??....
 
Thanks for the information Mushi. Do you know if we have to re-submit all the personal data/papers like we did when we first hired the helper, such as our HK Tax copy, our bank statements, etc.?

And with the timing - does this mean that if our next levy is due end Oct, we can start the process in mid-Oct, and then just not pay the levy even if the contract isnt renewed/stamped by the consulate until a few days after (within the 15 days post-levy date)?

Thanks for all the advice/information you have provided so far. :)
 
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