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The Employment Support Scheme (ESS) was approved by the Finance Committee of Legislative Counsel of the HKSAR on 18 April 2020. The objective of the ESS is to provide financial support to employers to pay staff wages and maintain employment.  

In a nutshell, private sector employers that have been making Mandatory Provident Fund contributions or set up an Occupational Retirement Schemes Ordinance (ORSO) scheme for employees are eligible to apply for the subsidy. The subsidy is 50% of actual wages paid in a specified month for a maximum period of 6 months, and the subsidy is capped at HK$9,000 per employee per month. Details regarding the application and payment process will be released in due course. 

Employers are actively discussing the subsidy, including whether to apply and how the “no redundancies” undertaking might impact their current plans. There are various considerations such as eligibility, whether to seek government support, the financial impact, and operational matters. We have prepared a pamphlet to share are initial insights and information on what we know about the ESS at this point. 

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of theparticular situation.

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© 2020 SF Lawyers, a Hong Kong law firm which provides legal services is in association with KPMG Law. They are separate legal entities. Neither SF Lawyers nor KPMG Law has any control over, or acts as an agent of, or assumes any liability for the acts or omissions of, the other. Both SF Lawyers and KPMG Law are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

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