Employers can also receive OJT allowance for hiring older employees
The Hong Kong government is extending allowances of up to $20,000 as part of a new scheme to encourage elderly and middle-aged people to rejoin the workforce.
In a statement, the Labour Department (LD) opened on Tuesday for registration a new three-year Re-employment Allowance Pilot Scheme (REA Scheme).
"The REA Scheme encourages elderly and middle-aged people to return to the employment market, and helps unleash this potential labour force, which is beneficial to both employees and employers," a Labour Department spokesperson said in a statement.
Eligible individuals include Hong Kong residents aged 40 or above who are legally employable and have not been paid employment for at least three consecutive months.
Under the scheme, these individuals can receive an allowance of $10,000 if they get employed full-time for six consecutive months. Those who have worked full-time for 12 consecutive months will be granted an additional allowance of $10,000.
"The amount of allowance for participants completing part-time employment will be halved," the Labour Department said in a media release. "Each participant can receive a maximum re-employment allowance of $20,000 during the implementation period of the REA Scheme."
Meanwhile, employers of REA Scheme participants may also enrol in the Employment Programme for the Elderly and Middle-aged (EPEM) to receive on-the-job training (OJT) allowance.
"To encourage employers to take on participants of the REA Scheme, LD will extend the duration of OJT allowance under EPEM for eligible employers to six to 12 months," the department said.
Source: ManpowerGroup Employment Outlook Survey 2024
The findings come amid strong hiring sentiments in Hong Kong, where 37% of employers anticipate an increase in hiring in the third quarter of 2024, according to data from the ManpowerGroup.
