Previously, the government implemented the Employment Support Scheme. It aims to provide time-limited financial support to employers to retain employees who may otherwise be made redundant. This week, the government announced details of the second tranche of the scheme. Latest updates of the scheme will be provided in this blog.
Eligibility of the Scheme
Similar to the last tranche of subsidy, employers who applied for the scheme must have set up their Mandatory Provident Fund (MPF) account on or before 31 March 2020 and are currently participating. The subsidies are applicable for two categories of employees, which are “regular employees” under the Master Trust Schemes and Industry Schemes for whom MPF mandatory contributions have been made by their employers; and employees aged 65 or above under the Master Trust Schemes and Industry Schemes. The scheme does not include “Casual employees” under the Master Trust Schemes and Industry Schemes.
Details of the Scheme
Application of the second tranche of wage subsidy will commence on 31st August 2020. For employers who have applied in the first tranche, they must submit a new application to reapply. The deadline is 13th September 2020.
Moreover, Employers who have applied for the first tranche of the Employment Support Scheme can re-select the “Destinated Month” in the second tranche of application. Nevertheless, the number of people promised to be paid must be based on March 2020.
In addition, for employees aged 65 or above and owned an MPF account, a monthly subsidy of $5000 will be provided. Employers are required to give the total sum of money to related employees. Meanwhile, the bureau will actively review whether employers act as promised.
Do note that employers who are in breach of their undertakings during the first subsidy period have to return the unspent balance or pay a penalty to the Government.
Hope this blog helps!
For more information, you may refer to the official website of the Employment Support Scheme.
Stay tuned for more business information!
See you @WYND.