Since the SAR government implemented the Non-Governmental Organization (NGO) lump sum grant subsidy system (LSG) in 2001, negative effects such as "fat and thin" and "unequal pay for equal work" have been generated, which can be called "the worst of all evils" in the social welfare sector. source", although it has been reviewed twice, it is still criticized.
Earlier, the Social Welfare Department released more than 80 NGOs "Review Reports on Remuneration of Staff at the Top Three Tiers", which resurfaced the structural problems behind the Lump Sum Grant system.
Di Zhiyuan, a new member of the Legislative Council in the social welfare sector and chairman of New Thinking, told Hong Kong 01 that organizations cannot make good use of the flexibility in the system, because about 90% of the social welfare sector's budget is spent on manpower investment. Budget costs, labor will be reduced, but lack of labor will lead to low morale.
One of the key points of the block grant subsidy system should pay attention to how to ensure the remuneration of employees, but the midpoint salary allocation benchmark makes the remuneration of many social workers not as good as before, resulting in the loss of high-quality talents in the industry...
Di Zhiyuan, a newly-elected member of the Legislative Council and chairman of New Thinking, pointed out that about 90% of social welfare organizations' expenditures are spent on labor.
(Photo by Gong Jiasheng)
For details, please read the 299th issue of "Hong Kong 01" e-Weekly Newsletter (January 10, 2022) "
Why does the Lump Sum Grant System become the "root of all evil"?
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