Donald Tsang said he hoped it can be implemented as soon as possible.

But it prompted calls for the levy to be scrapped completely because the Employees' Retraining Fund now holds HK$4 billion, Hong Kong Employers of Domestic Helpers Association chairman Joseph Law said.

"Though the two-year exemption will help relieve the burden on the middle class, the levy should be permanently suspended," he said.

Indonesian Migrant Workers' Union head Rusemi welcomed the move, saying she also hoped for an increase in salaries as a result.

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The Employees' Retraining Ordinance requires employers hiring low-skilled imported labor to pay the Employees' Retraining Levy. The money goes into the Employees' Retraining Fund to provide training and retraining of local workers.

Employers of domestic workers became liable to pay the levy in 2003.