Hong Kong launches Re-employment Allowance Pilot Scheme to re-engage elderly and middle-aged workers

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Each participating employee can receive a maximum re-employment allowance of HK$20,000, while employers will get an on-the-job training allowance.

To encourage elderly and middle-aged people to re-enter the employment market, Hong Kong’s Labour Department (LD) has announced the launch of a three-year Re-employment Allowance Pilot Scheme (REA Scheme) on 15 July 2024.

For eligibility, participants must:

1. be Hong Kong residents aged 40 or above;
2. not be engaged in any paid work in Hong Kong (including employment, self-employment and running a business) for three consecutive months or more before joining the REA Scheme;
3. be legally employable in Hong Kong (except those who hold a visa/entry permit to work, study, establish or join in any business in Hong Kong or to stay in Hong Kong as a visitor);
4. have no kinship ties with their employers; and
5. not be the sole proprietor, partner or director of the employing company.

Participants who have worked full-time for six consecutive months will be provided with an allowance of HK$10,000, while those who have worked full-time for 12 consecutive months will be given an additional allowance of HK$10,000. The amount of allowance for participants completing part-time employment will be halved.

Each participant can receive a maximum re-employment allowance of HK$20,000 during the implementation period of the REA Scheme.

Employers of participants of the REA Scheme can, at the same time, enrol in the Employment Programme for the Elderly and Middle-aged (EPEM) to provide on-the-job training (OJT) to the participants. They are not required to register the job vacancy at LD in advance, and will be provided with OJT allowance.

LD will extend the duration of OJT allowance under EPEM for eligible employers to six to 12 months. The length of the OJT period would be fixed at six months for employees aged 40 to 59, and 12 months for employees aged 60 or above.

Eligible employers should submit a completed "Preliminary Application Form for On-the-Job Training (Applicable for Re-employment Allowance Pilot Scheme)".

The REA Scheme is now open for registration.

Image / Hong Kong’s Labour Department