{"id":35679,"date":"2020-05-25T12:27:20","date_gmt":"2020-05-25T04:27:20","guid":{"rendered":"https:\/\/zegal.com\/?p=35679"},"modified":"2023-01-13T16:26:09","modified_gmt":"2023-01-13T08:26:09","slug":"covid-19-employment-support-scheme-hong-kong","status":"publish","type":"post","link":"https:\/\/zegal.com\/en-nz\/blog\/post\/covid-19-employment-support-scheme-hong-kong\/","title":{"rendered":"Updates on Covid-19 Government Support for Employers in Hong Kong"},"content":{"rendered":"<figure id=\"attachment_35681\"  class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-35681\" src=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-1024x768.jpg\" alt=\"\" width=\"1024\" height=\"768\" srcset=\"https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-1024x768.jpg 1024w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-300x225.jpg 300w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-768x576.jpg 768w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-1536x1152.jpg 1536w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-2048x1536.jpg 2048w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-640x480.jpg 640w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-1200x900.jpg 1200w, https:\/\/zegal.com\/wp-content\/uploads\/2020\/05\/adam-niescioruk-Z9arfr0f248-unsplash-1920x1440.jpg 1920w\" sizes=\"auto, (max-width: 639px) 98vw, (max-width: 1199px) 64vw, 770px\" \/><figcaption class=\"wp-caption-text\">Photo by Adam Nie\u015bcioruk on Unsplash<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">As the world reacts to the Covid-19 epidemic, Hong Kong has announced an Employment Support Scheme as part of their anti-epidemic fund on 18th April 2020. Here you&#8217;ll find a comprehensive guide to the details of the ESS.\u00a0<\/span><\/p>\n<h4><b>Hong Kong\u2019s Employment Support Scheme (ESS)<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The HKD$81 billion scheme aims to cushion the impact that Covid-19 has brought to the employment sector. The ESS has been set up to maintain employment in hard-hit industries through the provision of time-limited financial support for employers that retain their employees who would have otherwise been made redundant. Additionally, the ESS also covers eligible self-employed persons with a one-off lump sum subsidy.<\/span><\/p>\n<p><b><i>Who is eligible for the Employment Support Scheme?<\/i><\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">All employers who have been making Mandatory Provident Fund (MPF) contributions or have set up Occupational Retirement Schemes (ORSO Schemes) for their employees.\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">\u201cEmployees\u201d refers to those who are full-time and part-time. This is not applicable to persons like government employees, statutory bodies and staff employed by outsourced service contracts that are under Government contracts. <\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Self-employed persons that have been contributing to MPF for the past 15 months, from or before 31st March 2020 (excluding backdating)<\/span><\/li>\n<\/ul>\n<p><strong>*All eligible employers partaking in the ESS must formally agree to not implement any form of redundancies during the subsidy period.\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">**If there is a reduction in the number of employees on the payroll within the stipulated time period, the employer will be penalised accordingly. If any employer is found trying to terminate employees or add non-employees (i.e. friends or family) to the payroll, the employer will be subjected to criminal liabilities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">***Employers are expected to<strong> transfer 100% of all given subsidy amounts to employees.<\/strong> The government will also release the list of companies under the ESS in order to ensure transparency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">More details on penalties can be found <\/span><a href=\"https:\/\/gia.info.gov.hk\/general\/202005\/18\/P2020051800697_341485_1_1589802881819.pdf\"><span style=\"font-weight: 400;\">here<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b><i>What is the subsidy amount given under ESS?<\/i><\/b><\/p>\n<p><strong>For Employers:<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The amount of subsidies given will be 50% of the monthly wages per employee, with a maximum subsidy of HKD$9,000. This means that any monthly wage above HKD$18,000 will be given the maximum subsidy amount of HKD$9,000 only.\u00a0<\/span><\/p>\n<p><strong>For Self-Employed Persons:<\/strong><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The one-off lump sum subsidy will be HKD$7,500.<\/span><\/p>\n<h5><b>Application and Payment period<\/b><\/h5>\n<p><span style=\"font-weight: 400;\">At the moment, the Government has announced 2 rounds of payments with 2 application periods.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Applications must be submitted through the <\/span><a href=\"http:\/\/www.ess.gov.hk\"><span style=\"font-weight: 400;\">ESS online portal<\/span><\/a><span style=\"font-weight: 400;\">. The first round of applications start 0700hrs on 25th May 2020 and will close 2359hrs on 14th June 2020.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Application Period<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Applicable Wage Months to select (only select one)<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Payment Period<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Subsidy Covers<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">25th May &#8211; 14th June 2020<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">December 2019 &#8211; March 2020<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">End June 2020<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">June &#8211; August 2020 Wages<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">TBA<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">TBA<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">September 2020<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">September &#8211; November 2020 Wages<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h5><b>Documents required for application<\/b><\/h5>\n<p><strong>For employers under MPF Schemes:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business Registration Number (or other registration number as required)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Name of the MPF Trustee<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Name of MPF Scheme and Scheme Registration\/ Participation Number\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bank account number of employer\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Scanned copy of bank statement\u00a0<\/span><\/li>\n<\/ul>\n<p><strong>For employers under MPF-exempted ORSO Schemes:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business Registration Number (or other registration number as required)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Name of MPF-exempted ORSO scheme, MPF Exemption Number and ORSO Registration\/ Exemption Number\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bank account number of employer<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Number of eligible employees in March 2020, to be submitted through a designated form<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Scanned copy of exemption certificate issued by MPFA<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Scanned copy of bank statement<\/span><\/li>\n<\/ul>\n<p><strong>For self-employed persons:<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Name of MPF Trustee<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Name of the MPF Scheme (include all) and Scheme Registration\/ Participation Number<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Bank account number of employer<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Scanned copy of bank statement<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The Employment Support Scheme is a part of the Anti-Epidemic Fund initiated in light of Covid-19 by the Hong Kong government. This information is<strong> valid from the date of 20th May 2020<\/strong>. <\/span><\/p>\n<h4><b>Hong Kong\u2019s Anti-Epidemic Fund\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">The comprehensive fund of HKD$137.5 billion will cover different Covid-19 affected sectors. The Legislative Council Finance Committee had approved the second round of fund injection on 18th April 2020.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Sector<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Overview of Measures<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Employment\u00a0<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Total funding of HKD$6 billion\u00a0<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Includes schemes like Employment Support Scheme (ESS), Job Retention and Creation measures and Matching Grant Scheme of Skills Upgrading.<\/span><span style=\"font-weight: 400;\"><\/p>\n<p><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Creation of approximately 30,000 fixed-term jobs (up to 12 months) in the upcoming 2 years.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Matching grants of up to HKD$100 million for skills upgrading programmes for employees.<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Real Estate<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">One-off subsidies to eligible licensed individuals<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">The subsidy amount will be equivalent to the 24-month licence fee for relevant licences.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Rental and fee concessions for selected government premises from April 2020 to September 2020.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Banking and Finance<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">One-off relief grant to eligible individuals under Category B &amp; C exchange participants and licensed Securities and Futures Commission individuals\u00a0<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Intervention from Hong Kong Monetary Authority to address the pressure on clients\u2019 cash flow.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Education<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">One-off relief grant of HKD$40,000 to tutorial schools, in accordance with the Education Ordinance.\u00a0<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">One-off relief grant (varying amount) to suppliers and service providers for schools and educational institutions\u00a0<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">One-off relief grant for registered coaches under the National Sports Associations and Sports Organisations as well as instructors affiliated to the Social Welfare Department.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">One-off interest-rate deferral of loan repayments for 2 years to post-secondary institutions under the Start-Up Loan Scheme or Non-profit-making international schools. Applicable to students under Working Family and Student Financial Assistance Agency.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Aviation<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">One-off subsidy of HKD$1 million for Hong Kong registered large aircrafts and HKD$200,000 for small aircrafts.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">One-off subsidy (varying amount) to companies in the aviation support line.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Transportation<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">20% fare reduction between 1st July 2020 to 1st January 2021 for MTR Corporation Limited.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">100% reimbursement of actual regular repair and maintenance costs and insurance premiums for a period of six months for eligible transportation companies.\u00a0<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Cash subsidies to transportation drivers.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Monthly public transport expense threshold of the Public Transport Fare Subsidy to be halved to HKD$200 from July 2020 to December 2020.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Hotels and Tourism<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Cash subsidy for licensed hotels<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Subsidies for tourism-related companies.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Construction<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">HKD$50,000 training subsidies to construction consulting firms.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Cash subsidies for eligible construction-related employees.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Insurance<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Extended grace periods for insurance policy holders individuals to make payment.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Catering<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">One-off subsidy (varying amounts) to be given to catering companies in two tranches.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Catering businesses that have been closed down under government regulations will receive a further one-off subsidy of HKD$50,000.\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Healthcare<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Waived registration and enrolment fees for eligible healthcare professionals from July 2020 to 2022, in recognition for their dedication to fight Covid-19 on the frontlines.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Legal<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">LAWTECH Fun started to support and upgrade SMEs.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Covid-19 Online Dispute Resolution (ODR) Scheme started to provide legal assistance for issues relating to Covid-19.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Innovation and Technology<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Distance Business Programme launched to support technology-based businesses.<\/span><\/p>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Funding for 5G development projects.<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Others<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">One-off relief grants for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sectors that have been completely\/partly closed by government regulations in light of Covid-19<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Private refuse collectors<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Local primary producers<\/span><\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"font-weight: 400;\">Subsidies given to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Creative industries\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Non-profit-making organisations<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p class=\"p1\" style=\"text-align: center;\"><b><i>This article does not constitute legal advice.<\/i><\/b><\/p>\n<p class=\"p2\" style=\"text-align: center;\"><i>The opinions expressed in the column above represent the author\u2019s own.<\/i><\/p>\n<p class=\"p3\" style=\"text-align: center;\"><span class=\"s1\"><a href=\"https:\/\/register.zegal.com\/\"><b>Start managing your legal needs with Zegal today<\/b><\/a><\/span><\/p>\n<p>\n<a href=\"https:\/\/zegal.com\/blog\/post\/the-coronavirus-working-from-home-in-hong-kong\/\">READ MORE: The CoronaVirus: Working from Home in Hong Kong<\/a><\/p>\n<p><a href=\"https:\/\/zegal.com\/blog\/post\/gone-viral-event-cancellations-during-coronavirus-outbreak\/\">FURTHER READING: Gone Viral: Event Cancellations During Coronavirus Outbreak<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As the world reacts to the Covid-19 epidemic, Hong Kong has announced an Employment Support Scheme as part of their anti-epidemic fund on 18th April 2020. Here you&#8217;ll find a comprehensive guide to the details of the ESS.\u00a0 Hong Kong\u2019s Employment Support Scheme (ESS) The HKD$81 billion scheme aims to cushion the impact that Covid-19 [&hellip;]<\/p>\n","protected":false},"author":41,"featured_media":35681,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"categories":[14278,133],"tags":[10306,10757,30,10307],"usecases":[],"businesstypes":[],"country":[],"class_list":["post-35679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","category-startup","tag-coronavirus","tag-covid-19","tag-hong-kong","tag-z-syndicate"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Updates on Covid-19 Government Support for Employers in HK<\/title>\n<meta name=\"description\" content=\"Latest details of Employment Support Scheme in Hong Kong. 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