Firms to receive MOP20,000 subsidy for each local hire

The Executive Council recently finished discussing the draft of a new executive regulation allowing small and medium enterprises in Macau to receive MOP19,968 in subsidy for each local hire meeting certain conditions.

The scheme requires subsidized employers to keep the employees on for at least a year, the government announced over the weekend. 

Employers are able to apply to receive the financial support between July 31 and September 30.

The subsidy amount is calculated as half of the city’s minimum wage for six months.

According to Wong Chi Hong, director of the Labour Affairs Bureau (DSAL), employers who have received a subsidy will need to refund the government proportionately if employees hired under the scheme leave the company.

For example, Wong said, if an employer unreasonably dismisses a subsidized new hire who has only worked for two months, the employer will be required to refund four months’ worth of the subsidy, as well as half of the two month portion.

If the new hire has worked at least half a year before being unreasonably dismissed, the employer will need to refund a quarter of the total subsidy paid.

Employers will need to pay back the subsidies’ pro rata even if the new hire chooses to resign.

The bureau’s deputy director Chan Chon U added that businesses ceasing to operate would be considered unreasonable dismissal, making repayments necessary.

Other conditions set forth in the scheme include making subsidized employers retain the number of local employees originally hired. Unpaid leave cannot be used to circumvent this requirement.

Eligible new hires must have been registered with the DSAL within 60 days of employment. Spouses or de-facto marriage partners of employers, and second-tier relatives who live with employers are not eligible under the scheme.

Wong pledged that subsidies will be paid to employers around 1.5 months after eligible employments and applications are lodged.