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Employee's choice


          Previously, provident fund’s investment in risky assets was capped, while large investment proportion was aimed at low-risk debt instruments. The regulation did not give flexibility to reflect the diverse characteristics of employees such as age, risk-taking behavior, and various needs for compensation level.

          As a result, employee’s choice concept was established to broaden the choices for employee in 2000. Employee’s choice would enable employees to choose their own investment policies that is most suitable for them.

          However, it is not mandatory for employer to implement employee’s choice. Understanding of employee’s choice concept and the readiness of employers are the key issues to the successful of the implementation of employee’s choice.


Main page                                                                                                                Last update : April 3, 2006

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