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Govt subsidies : your gamble : 3 month or 6 month view
04/12/2020
Govt subsidies : your gamble : 3 month or 6 month view
<p>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.</p> <p>The proposals the HKSAR Government is making:</p> <p>I. Proposals on job retention, job creation and job advancement</p> <p>(1) Implementing the Employment Support Scheme ($80 billion):</p> <p>• The Government will provide wage subsidy to eligible employers to retain the latter’s employees. Employers have to undertake that they cannot implement redundancy.</p> <p>• 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)</p> <p>• 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.</p> <p>II. Proposals on providing relief to hard-hit sectors</p> <p>(15) To support catering sector</p> <p>(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</p> <p>(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</p> <p>(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);</p> <p>expect to benefit 17 000 catering outlets and 920 market stalls, and their employees.</p> <p>* eligible general restaurants, light refreshment restaurants, marine restaurants and factory canteens</p>
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