Penalty percentages are calculated as follows. This alert provides a summary of the ESS and addresses some of the common questions raised by employers regarding the ESS. However, subsidies are not payable for any newly hired employees. 2. UPDATE: Hong Kong wage subsidy subject to employers undertaking not to implement redundancy during 6-month subsidy period Print Twitter LinkedIn The Hong Kong Government has issued further clarifications on its relief measures today, 16 April 2020, contained in a report titled " HKSAR Government's package of measures to support individuals and businesses affected by … However, such applicants must have opened their MPF account on or before 31 March 2020 in order to be eligible for the first tranche of subsidies. Thank you for your interest. Subscribe our newsletter through email 13 May 2020. Not only do we regularly provide updates / insights on the developments that affect the SME community, but we can also provide assistance on applying to ESS and other government support schemes such as the Distance Business Programme. At the time of writing, the details for Tranche 2’s application deadlines have yet to be released. Similarly, any employee whose information is not included in the MPF record certificates is not eligible for wage subsidies. All Rights Reserved. Be in touch with the latest news of Accounting and Finance. Can employers terminate employees? The subsidy for each Hong Kong employee will be capped at HKD 9,000. When submitting an online application, MPF applicants shall authorize: Once an applicant’s authorization regarding the above has been received, the MPF trustees will send their MPF record certificates to the ESS processing agent to facilitate the processing of the application, and calculation of the subsidy amount. No attorney-client relationship will exist between you or your business and O’Melveny or any of its attorneys unless conflicts have been cleared, our management has given its approval, and an engagement letter has been signed. The amount of subsidy an applicant can receive will be calculated in accordance with the employee’s monthly salary specified by the Hong Kong employer. The penalty will be calculated using the following formula: The penalty percentage is based on an escalating scale and varies from 10% to 80% depending on the total number of employees in March 2020. Eligible employers can apply for wage subsidies for the applicable employees (i.e. agreeing to our Business Registration Number or other registration numbers; Name of the MPF Trustee (and include all MPF schemes participated from 1 December 2019 to 31 March 2019) and Scheme Registration / Participation Number; Number of eligible employees in March 2020 with designated form to provide information of eligible employees, including the wage of each employee in the “specified month; Name of the MPF-exempted ORSO Scheme, MPF Exemption Number and ORSO Registration / Exemption Number; Number of eligible employees in March 2020 with designated form to provide information on eligible employees, including the wage of each employee in the “specified month”; Scanned copy of the exemption certificate issued by Mandatory Provident Fund Schemes Authority. It follows that employers may risk breaching their undertaking not to implement redundancies (i.e. the FastLane Group for assistance in your accounting, auditing, HR and company secretarial matters! The amount of subsidy an applicant can receive will be calculated in accordance with the employee’s monthly salary specified by the Hong Kong employer. Hong Kong employers can apply for an ESS subsidy in either Tranche 1 or Tranche 2. What information and documents are required to be submitted for online applications? Application dates for the second tranche of wage subsidies for September to November 2020 will be announced in due course. HONG KONG. to keep headcount at the same number as in March 2020). The HKSAR Government has launched the “Employment Support Scheme” (ESS) under the second round of the “Anti-epidemic Fund” to provide time-limited financial support to employers to retain employees who may otherwise be made redundant. The amount of the subsidy will be based on 50% of the monthly wages of the employee capped at HK$18,000, meaning a maximum subsidy of HK$9,000 per month. ... Hong Kong Special Administrative Region (HKSAR) ... apply, in respect of the same employees, for subsidies under the subsidy scheme of the Transport Department specifically designed for green minibus 22nd June 2020 – (Hong Kong) A Government spokesman today said that the Employment Support Scheme (ESS) Secretariat has published the list of the first batch of employers who have received wage subsidies, the amount of subsidies and the total number of committed headcount of employees on the ESS website (www.ess.gov.hk). As a result, employers must ensure that the number of their employees is no less than the number employed in March 2020. Reception, G/F, HKPC Building, 78 Tat Chee Avenue, Kowloon, Hong Kong. Read on to learn more about the latest updates on the Scheme that may be relevant […] This package will also launch the. The Employment Support Scheme (ESS), a key component of Hong Kong’s Anti-epidemic Fund 2.0, enables HK employers to retain their employees and provide wages. What is the eligibility criteria for the ESS? Please contact the FastLane Group for assistance in your accounting, auditing, HR and company secretarial matters! Secretariat of Green Employment Scheme: Graduates Subsidy Programme. Employers can choose either December 2019, January, February or March 2020 as the “specified month”in which their subsidies would be calculated, Subsidies for June, July and August 2020 will be calculated on the basis of the wages paid in the “specified month”, Wage subsidies for employers and self-employed persons will be disbursed within 3-4 weeks of an applications approval, ORSO schemes may require a longer processing time, At the time of writing, the details for Tranche 2’s application deadlines have yet to be released, “Regular Employees” aged between 18 and 64, 50% of actual wages paid to each “regular employee” in the “specified month”, Wages are capped at HKD 18,000 per month (maximum subsidy per employee is capped at HKD 9,000 per month), To the extent that a Hong Kong employer have provided their employees’ “basic salaries” when making MPF contributions, then wage subsidies will be calculated based on 50% of the basic salaries that were actually paid in the “specified month”, Wage subsidies will be capped at HKD 18,000 per month (maximum subsidy per employee aged 65 or above is capped at HKD 9,000 per month), If a Hong Kong employer has not provided the “basic salaries” when making MPF contributions, then wage subsidies will be calculated by multiplying the amount of the employers’ voluntary contributions in the “specified month”  by 10 times, Wage subsidies will be capped accordingly at HKD 9,000 per month per employee aged 65 or above, The amount of wage subsidies will be calculated based on 50% of the actual wages paid in the “specified month”, with a wage cap at HKD 18,000 per month (maximum subsidy per employee is capped at HKD 9,000 per month), The ESS processing agent to receive MPF records from the applicants MPF trustees; and, The MPF trustee to provide the MPF records to the ESS processing agent, If an employer fails to utilize all the ESS wage subsidies received for a particular month during the subsidy period to pay the employee wages in the same month, the Hong Kong government will claw back the unspent amount, Clawback for a particular month (June / July / August 2020) = Subsidies received – Total actual wages paid to employees, If the number of employees on a company’s payroll in any one month of the subsidy period is less than the number of staff (whether paid or unpaid) in March 2020, the employer is liable to a penalty which is determined by the difference in paid staff, Penalty for making redundancies in June / July / August 2020 = Subsidies received x Headcount reduction percentage x Penalty percentage, Headcount reduction percentage = ((Total number of paid and unpaid staff (as of March 2020)) – (Total number of paid staff in June / July / August) / Total number of paid and unpaid staff (as of March 2020) x 100%, Verify information submitted by Hong Kong employers, Conduct on-site checking at selected Hong Kong employers’ organisations, Disclose publicly the list of employers who have received subsidies, the total number of employees that have benefitted, and the amount of subsidies received, The FastLane Group is dedicated to helping SMEs in all aspects. This includes a … Launched under the second-round of the Anti-epidemic Fund, the scheme provides time-limited financial support to employers to retain employees who may otherwise be made redundant. Applicants cannot make amendments to the application once submitted but they can can email the ESS Secretariat regarding the application (e.g. UPDATE 3: 15 May 2020 – Hong Kong Wage Subsidy Update 3 – HK Government releases further details on application process for Employment Support Scheme (ESS) Funding approval for the second round of Anti-epidemic Fund measures announced by the Chief Executive on 8 April 2020 was given by the Finance Committee of the Legislative Council on 18 April 2020. What is the subsidy amount and how it is calculated? June to November 2020). In this context, we caution that employers cannot unilaterally vary the terms of employment for their staff. Employers who have set up ORSO schemes can apply for wage subsidies in respect of employees who are members of these schemes and who are Hong Kong identity card holders. Are MPF contributions required in respect of wage subsidies under the ESS? Subsidy Scheme for Employment Agencies to be introduced under Anti-epidemic Fund The Labour Department (LD) today (June 2) announced that a Subsidy Scheme for Employment Agencies (EAs) will be introduced under the Anti-epidemic Fund to assist EAs to tide over the difficulties arising from the COVID-19 epidemic. They must reach an agreement with each employee in order to vary any such terms. The maximum amount of subsidy is therefore HK$9,000 per month per employee. Hong Kong’s labour department announced that a subsidy scheme for employment agencies will be introduced under the country’s anti-epidemic fund. Prior results do not guarantee a similar outcome. For instance, if an employee is terminated (for whatever reason) in April or May 2020, employers should ensure that a new employee is hired by June 2020, so that their headcount in March 2020 is maintained throughout the period of the first tranche (June to August 2020). Can employers request employees to go on unpaid leave during the subsidy period? Green Employment Scheme: Graduates Subsidy Programme. The amount of the subsidy will be calculated on the basis of 50% of the actual wages paid to employees for any chosen month during December 2019 to March 2020, irrespective of the way the employee is paid. Home > GES News > HONG KONG - Second tranche of subsidies under the Employment Support Scheme (ESS) unveiled by the HK. By post. Private employers have to contribute to the Mandatory Provident Fund or set up an Occupational Retirement Scheme and agree not to lay off any staff during this period – to be eligible for the ESS. The government has rolled out a series of measures to relieve the economic impact brought about by the COVID-19 pandemic. On 12 May 2020, the Chief Executive announced further details on the newly implemented Employment Support Scheme as well as further expansions. The ESS will also provide a one-off lump-sum subsidy of HK$7,500 to self-employed individuals who have made MPF contributions in the past 15 months. Employers must apply online by 14 June 2020 to participate in the ESS. At the time of writing, the details for Tranche 2’s application deadlines have yet to be released. The subsidy will be for a period of six months. The Employment Support Scheme (ESS), a key component of Hong Kong’s Anti-epidemic Fund 2.0, enables HK employers to retain their employees and provide wages. Be in touch with the latest news of Accounting and Finance. 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