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미래전략 연구소2020-04-27T17:52:49+09:00

TNC Business Strategy Research

Hong Kong Employment Support Scheme (ESS) New Updates!

Date
2020-05-22 13:05
The Government has implemented various relief measures worth $137.5 billion and 59% of the relief fund, HK$81 billion, is allocated to the ESS. Employers must undertake that not to implement redundancies during the subsidy period. The ESS subsidies must be used for the employees’ wages.

Employers can choose either between Dec 2019 to Mar 2020 as the specific month. The subsidy for 1st tranches will be calculated on the basic of wages paid in the specific month. The employees’ headcount from June to August of this year must not be less than the employees’ headcount in March of this year. The relevant MPF accounts should be setup on or before 31 march 2020.

Duration of the ESS, it will cover in two tranches for 6 months and in two payment, which is: -

1st tranches: covering the subsidy for June to August 2020

2nd tranches: covering the subsidy for September to November 2020 (the application detail will be launch later)
How to apply?

The application via ESS Online Portal (https://www.ess.gov.hk/) starts from 25 May 2020, 07:00am to 14 June 2020, 11:59pm for employer and self-employed persons.

In general, the payment to be received about 3-4 weeks after application submitted for employer and self-employed person. If the case related to Occupational Retirement Schemes  (“ORSO”) may take longer time for process.

What kind of documents/ information are required?

The applicant shall authorize ESS Processing Agent (“Agent”) to received Mandatory Provident Fund (“MPF”) scheme records from their MPF trustees. The MPF trustees will provide the same to Agent, to handling application and calculation of the subsidy amount.

For the employer under MPF scheme, the following information should provide for the application: -

 

To fill-in:
  1. Company Information
  2. Number of Business Registration Certificate
  3. MPF Trustees Name
  4. MPF Scheme Plan Name
  5. MPF Registration number
  6. Bank account detail
 

To upload:
  1. Corporate bank statement
If the employer which under ORSO, should additional to provide staff headcount and employment information on March 2020, all of staff’s salary in specific month by designated form.

For the self-employed person, they should provide the above documents except Business Registration Certificate.

Any Claw back and penalty?

If the employer fails to use the all subsidy for employees’ wages during the period, the Government will claw back the unspent balance of the subsidy.

Employer will have to pay penalty if the employees’ headcount on payroll of either one month of subsidy period less than total employees’ headcount on March 2020.

Claw back calculation:
Claw back for a particular month = Subsidies received - Total actual wages paid to employees
Penalty calculation:
Penalty of making redundancies in particular month = Subsidies received x Headcount reduction % x Penalty %
Headcount reduction %

 
Headcount reduction % = Total no. of paid and unpaid staff (as of March 2020) - Total no. of paid staff inparticular month x 100%
Total no. of paid and unpaid staff (as of March 2020)
Penalty %
Total no. of paid and unpaid staff
(as of March 2020)
Penalty %
<10 10%
10 – 49 20%
50 – 99 40%
100 – 499 60%
≥ 500 80%