Hong Kong Government announced to launch a new tranche of Employment Support Scheme (ESS). Due to the 5th wave of COVID attacked hardly on the economy, the government budgets $26-$31 billion wage subsidy to safeguard local jobs.
What is the objective of ESS?
The Employment Support Scheme aims to speed up the economy recovery and resumption from the 5th Wave of COVID. The experience of the 1st round ESS in 2020, the government focused on supporting the affected industries, small and medium-sized enterprises (SMEs).
The practice of the wage subsidy will be the same as 2020. The wage subsidy will be granted to eligible employers. Then the employers to pay for May, June and July 2022 salary.
What are the criteria of ESS?
- $8000 per month per employee with monthly salary less than $30,000.
- The employers have to propose the number of subsidised employees. And the ceiling of subsidised employee is less than previous ESS in 2020.
- During the ESS period, the number of employee should NO LESS than the number of proposed in the application.
Who is NOT eligible under the ESS?
For the new tranche of ESS, Supermarket and pharmacy chain store, property management, banks, financial institutions, express delivery, telecommunications are excluded.
Still, the new tranche of ESS needs approval from the Legislative Council. And the government will contact chambers of commerce, employer’s federations and trade unions to refine the details of the scheme. The subsidy schedules to payout in April.
For further information, please contact us.
You may want to read: Second Employment Support Scheme for Wage Subsidies