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Govt subsidies : your gamble : 3 month or 6 month view
Some thoughts on Government proposed subsidies for "catering" and what they might mean to you. Can you now start to look 6 months ahead and perhaps are even allowed to "staff up" and create new jobs ... or would you take the short view 3 months down the road and opt for a lump sum? And as for a bar or nightclub premises shut by law there's a "further" $50,000; plus what the FEHD have said about that ... so far.
The proposals the HKSAR Government is making:
https://gia.info.gov.hk/general/202004/08/P2020040800810_339425_1_1586360416762.pdf
I. Proposals on job retention, job creation and job advancement
(1) Implementing the Employment Support Scheme ($80 billion):
• The Government will provide wage subsidy to eligible employers to retain the latter's employees. Employers have to undertake that they cannot implement redundancy.
• All employers who have been making Mandatory Provident Fund(MPF) contributions for employees are eligible, except those on the exclusion list (employees of the HKSARG, statutory bodies and Government subvented organisations)
• The wage subsidy to be provided by the Government is calculated based on 50%of the monthly salary, which is capped at $18,000 (i.e. the median monthly wage in Q2 2019), for a period of six months.
II. Proposals on providing relief to hard-hit sectors
(15) To support catering sector
(a) To provide one-off subsidy ranging from $250,000 to $2.2 million to catering outlets* based on the size of their premises. The subsidy will be disbursed in two tranches, and not less than 80% of the subsidy has to be used to pay employees' salaries. A licencee is required to undertake that there would be no redundancy of staff for 3 months after obtaining the subsidy, and it will not apply for subsidy under the Employment Support Scheme
(b) Each eligible catering outlet directed by the Government to close whole of its licensed premises (including karaoke establishments, bars/pubs and nightclubs) is eligible for a further one-off subsidy of $50,000
(c) To provide one-off subsidy of $50,000 to tenants of cooked food/light refreshment stalls at public markets managed by the Food and Environmental Hygiene Department (FEHD);
expect to benefit 17 000 catering outlets and 920 market stalls, and their employees.
* eligible general restaurants, light refreshment restaurants, marine restaurants and factory canteens
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By AJ HalkesSome thoughts on Government proposed subsidies for "catering" and what they might mean to you. Can you now start to look 6 months ahead and perhaps are even allowed to "staff up" and create new jobs ... or would you take the short view 3 months down the road and opt for a lump sum? And as for a bar or nightclub premises shut by law there's a "further" $50,000; plus what the FEHD have said about that ... so far.
The proposals the HKSAR Government is making:
https://gia.info.gov.hk/general/202004/08/P2020040800810_339425_1_1586360416762.pdf
I. Proposals on job retention, job creation and job advancement
(1) Implementing the Employment Support Scheme ($80 billion):
• The Government will provide wage subsidy to eligible employers to retain the latter's employees. Employers have to undertake that they cannot implement redundancy.
• All employers who have been making Mandatory Provident Fund(MPF) contributions for employees are eligible, except those on the exclusion list (employees of the HKSARG, statutory bodies and Government subvented organisations)
• The wage subsidy to be provided by the Government is calculated based on 50%of the monthly salary, which is capped at $18,000 (i.e. the median monthly wage in Q2 2019), for a period of six months.
II. Proposals on providing relief to hard-hit sectors
(15) To support catering sector
(a) To provide one-off subsidy ranging from $250,000 to $2.2 million to catering outlets* based on the size of their premises. The subsidy will be disbursed in two tranches, and not less than 80% of the subsidy has to be used to pay employees' salaries. A licencee is required to undertake that there would be no redundancy of staff for 3 months after obtaining the subsidy, and it will not apply for subsidy under the Employment Support Scheme
(b) Each eligible catering outlet directed by the Government to close whole of its licensed premises (including karaoke establishments, bars/pubs and nightclubs) is eligible for a further one-off subsidy of $50,000
(c) To provide one-off subsidy of $50,000 to tenants of cooked food/light refreshment stalls at public markets managed by the Food and Environmental Hygiene Department (FEHD);
expect to benefit 17 000 catering outlets and 920 market stalls, and their employees.
* eligible general restaurants, light refreshment restaurants, marine restaurants and factory canteens