Coronavirus Hong Kong: relaunch of wage subsidy scheme will benefit up to 1.3 million workers affected by fifth wave, Carrie Lam says, as infections surpass 1 million

City leader says new round of subsidies to help employers cover payroll but many larger companies excluded

She also writes letter to business chambers seeking to reassure them about government’s plan to contain the fifth wave

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Hong Kong’s leader has announced the relaunch of a subsidy scheme aimed at helping employers retain staff. Photo: Nora Tam

Elizabeth Cheung,Ezra CheungandDenise Tsang

Published: 11:59am, 18 Mar 2022Updated: 9:30pm, 18 Mar 2022

Employers affected by Hong Kong’s raging fifth wave of coronavirus infections will receive a new round of subsidies to help them cover staff salaries from May to July, the city’s leader has announced, as the tally of cases surpassed 1 million.

Chief Executive Carrie Lam Cheng Yuet-ngor also warned during a Friday press briefing that the unemployment rate was expected to rise due to ramped-up social-distancing regulations that had undercut the economy.

Lam revealed the government would spend as much as HK$31 billion (US$4 billion) on wage assistance for between 1.1 million and 1.3 million employees under a relaunched Employment Support Scheme (ESS).

“We will adopt a more targeted approach this time, focusing on companies directly or indirectly affected by the fifth wave, especially small and medium-sized enterprises,” Lam said. “Chain supermarkets … and property management companies will be excluded.”

Chief Executive Carrie Lam speaks to the press on Friday. Photo: Pool

Her pledge coincided with a grim milestone for Hong Kong as the Centre for Health Protection reported another 20,082 cases, pushing the overall tally to more than 1 million infections, or one in every eight residents. Another 265 Covid-19 related fatalities were also confirmed, taking the total to 5,401.