The HKSAR First tranche of wage subsidy under the Employment Support Scheme

 

The objective of the Employment Support Scheme (ESS) is to provide employers with time-limited financial support to retain employees who might have been laid off. Employers participating in the ESS must provide an undertaking not to make redundancies during the subsidy period, and to spend all the wage subsidies on paying wages to the employees. If an employer fails to comply with the undertaking, the Government will claw back the unspent balance of the wage subsidy or/and impose other penalty. Details will be announced early next week. The first tranche of the ESS will provide wage subsidies for three months from June to August 2020. The application will commence on 25 May 2020 and last for three weeks.
Targeted Employers and Employees
All employers who have made Mandatory Provident Fund (MPF) contributions or set up Occupational Retirement Schemes (ORSO) are eligible for ESS. The relevant accounts should be set up on or before March 31, 2020 (i.e. no backdating to or before that date)
Level of Subsidy for Self-employed persons & Employers
Self-employed persons

Employers per month

Duration of the ESS

  1. 1 st tranche: June, July and August 2020
  2. 2 nd tranche: September, October, November 2020

Application
To simplify administrative work and avoid delay or omissions during application, MPF applicants shall authorize the ESS processing agent (agent) to receive MPF records from their MPF trustees and the trustees to provide the same to the agent.  Upon authorization, the trustees will send the agent the MPF records to facilitate processing and calculation of the subsidy amount.
The detailed application processes for employers with MPF schemes, ORSO schemes, a hybrid of MPF and ORSO schemes, as well as self-employed persons will be announced next week. Please pay attention to further news and notices from the government, or visit the government news website: https://www.news.gov.hk/eng/index.html

 

Wingate Business Limited