Labour Department to launch Re-employment Allowance on Monday, up to HK$20,000 available for 6,000 beneficiaries

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11th July 2024 – (Hong Kong) The Labour Department is set to launch the Re-employment Allowance Pilot Scheme next Monday, a three-year initiative first announced in last year’s policy address. The scheme targets middle-aged and older citizens, encouraging them to re-enter the workforce with financial incentives that could see participants receive up to HK$20,000.

This innovative programme is designed to address the employment challenges faced by individuals aged 40 and above who have not engaged in paid work for at least three consecutive months. An estimated 6,000 people are expected to benefit from this initiative.

Participants who secure full-time employment and sustain it for six months will be eligible for a subsidy of up to HK$10,000. Those who continue in the same job for a year can receive an additional HK$10,000, totalling a possible HK$20,000. For part-time workers, the scheme offers a prorated subsidy, providing half the amount given to full-time employees.

Employers who hire participants from this scheme can also benefit. They will be eligible to participate in the Employment Programme for Middle-aged and Older Persons, receiving on-the-job training subsidies. The Labour Department will extend the subsidy period for eligible employers from six to twelve months, further encouraging the inclusion of older workers in the workforce.

To ensure the effectiveness of the scheme, the Labour Department has partnered with two service providers: the Federation of Trade Unions and the Hong Kong and The Federation of Hong Kong and Kowloon Labour Unions. These organisations will play a crucial role in not only providing employment matching services but also offering ongoing support to both employees and employers. This includes arranging employment consultations tailored to the participants’ needs, helping them align with suitable job vacancies, and assisting in the application process for the re-employment allowance.