Employment Subsidy To Be Handed Out In May: Govt

Labour minister Law Chi-kwong said on Monday that he hopes a new round of government employment subsidies to be handed out next month will bolster business confidence and boost the job market.

Application will open on Friday and it's expected companies can receive the money from early May.

It’s the second round of the Employment Support Scheme (ESS) which was introduced in 2020 to help businesses affected by the Covid-19 pandemic.

Eligible firms can claim up to HK$8,000 per month to help pay the salary of each eligible worker from May to July.

At a press conference, Law said he believes now is the right time to launch a new round of ESS.

He said along with the relaxation of social distancing measures and the recent handing out of a new round of consumption vouchers, the employment subsidy scheme will help businesses rebound after they were hit hard during the Omicron outbreak.

The secretary for labour and welfare added the administration will ensure that the cash ends up in workers' pockets.

"The mechanism here we apply basically relies on the MPF contribution records... We will be able to tell how many and exactly how much each one of the employee on the list is receiving from the employers," he said.

Officials said companies will be given the flexibility to update the number of employees who receive the subsidy in June and July.

Doris Ho, head of the Policy Innovation and Co-ordination Office, said any companies found to have abused the subsidy will have to pay it back in full, plus 10 percent of the sum as a penalty.

"From the policy objective of protecting as many jobs as possible, we would like to put in place a heavier penalty to provide a stronger deterrent effect against any non-compliance," she said.

Officials added the subsidy for the month of July will be given out in two instalments, so that they can deduct any penalties if necessary.