COVID-19 Government Wage Subsidy Schemes Across Europe and APAC - 20 July 2020 - Bird & Bird
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COVID-19 Government Wage Subsidy Schemes Across Europe and APAC 20 July 2020
Government Wage Subsidy Schemes
EUROPE
Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Belgium Temporary - Employer must face force majeure - The flexible measures - Will cover up to 70% of https://www.twobirds.com
unemployment (e.g. site forced to close) or currently apply as long gross monthly salary /en/news/articles/2020/be
scheme economic reasons (e.g. limited as the government - Capped at EUR 2.754,76 + lgium/covid-19-guidance-
business needs) restrictions are in government bonus of EUR for-employers-in-belgium
force, currently until 31 5.63/day
August 2020
Government Wage Subsidy Schemes & 01
Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Czech "Antivirus" - Employer must have paid wage to - Regimes A and B of - Depending on the nature of https://www.mpsv.cz/docu
Republic program employees and mandatory the program shall cover the obstacle to work, there ments/20142/1443715/Anti
contributions to respective the period from 12 are two separate regimes: virus-aj.pdf
authorities March onwards until 31 - Regime A: Forced limitation
- Employees must be in an August 2020 (they of business operation and
employment relationship with the have been extended) quarantine: 80% of the
employer, participate in sickness - Regime C shall cover super-gross wage will be paid
and pension insurance schemes and the months of June, (capped at CZK 39,000)
must not be within the period of July and August - Regime B: Related
notice and must not be given notice economic difficulties: 60% of
Specifically for the new Regime C: the super-gross wage will be
- As at the last day of each calendar paid (capped at CZK 29,000)
month, the employer does not - Under Regime C the eligible
employ more than 50 employees employers may apply for
who participate in sickness waiver of the payment of
insurance scheme social security contributions
- Number of employees, ascertained (only in relation to the part of
at the end of each of the months to contributions paid by the
which the scheme applies, did not employers)
decrease by more than 10%
compared to the number of such
employees as at 31 March 2020 and
the total assessment bases for
insurance purposes of employees in
the particular months to which the
scheme applies did not decrease by
more than 10% compared to the
total assessment bases of such
employees in March 2020
02 & Government Wage Subsidy Schemes
Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Denmark Three-party - Employer would otherwise Currently from - 75% for monthly paid https://virksomhedsguiden
agreement on terminate (i) at least 30% of their 9 March – 29 August employees (with a salary cap .dk/erhvervsfremme/conte
salary staff or (ii) at least 50 employees 2020 (both dates of DKK 30,000 per month for nt/temaer/coronavirus_og
compensation - Employer is not allowed to included) (salaried) monthly _kompensation/artikler/fa
from the Danish terminate any employees while employees) a-hjaelp-til-loenudgifter-
state receiving salary compensation - 90% for hourly paid loenkompensation/eba838
employees (with a salary cap 19-a5c6-4967-8c04-
- Employees are not allowed to work eae3cee2973d/ (Danish
during the period and receive full of DKK 30,000 per month for
hourly paid employees) only)
salary during the period
https://www.twobirds.com
/en/news/articles/2020/de
nmark/covid-19-guidance-
for-employers-in-denmark
Finland No direct wage - Lowered pension Nevertheless: https://www.twobirds.com
subsidies contributions for - Pension contributions are /en/news/articles/2020/fi
salaries paid between 1 lowered by 2.6 percentage nland/covid-19-guidance-
May – 31 December points for-employers-in-finland
2020
- Termination of
- Termination of employments, temporary lay-
employments, offs and employee
temporary lay-offs and consultation processes have
employee consultation been made easier and faster
processes have been
made easier and faster - Employees will receive
between 1 April and 30 unemployment benefits
June 2020
Government Wage Subsidy Schemes & 03Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
France Temporary layoff - Employers must be able to justify a - As per current law, - Under the initial scheme https://activitepartielle.em
/ short time work decrease in the company’s activity short time work implemented in March 2020, ploi.gouv.fr/aparts/https://
subsidy scheme and impossibility for all employees subsidies will be employers must pay 70% of www.twobirds.com/en/new
to continue working full-time granted for up to 12 their employees’ gross salary s/articles/2020/france/cov
months. The French for hours not worked (subject id19-guidance-for-
government has to more favourable CBA employers-in-france
adopted a new law that provisions) and the French
extends the maximum Government has been
coverage period from 6 reimbursing 100% of this https://travail-
to 12 months compensation to companies, emploi.gouv.fr/le-
up to a maximum hourly rate ministere-en-
- The Government set action/coronavirus-covid-
of EUR 31.98.
up another possibility 19/proteger-les-
of short time work - As per a new law which travailleurs-les-emplois-
which will be further should be effective les-savoir-faire-et-les-
supplemented by a retroactively as of June 1st competences/proteger-les-
decree to be published 2020, employees kept under emplois/chomage-partiel-
very soon. This new the scheme will continue to activite-
text provides for a receive at least 70% of their partielle/article/precisions-
long-term partial salary however the French sur-les-evolutions-
activity of 6 months Government will only procedurales-du-dispositif-
which may be reimburse 85% of this exceptionnel-d
renewable for a compensation to companies
maximum of 2 years. and up to a maximum hourly
rate of 27.41 EUR. https://www.twobirds.com
The conditions for
The former scheme /en/news/articles/2020/fr
setting up in the
conditions will be maintained ance/covid19-guidance-for-
company are to be
exceptionally for certain employers-in-france
signed a company
agreement or extended industries (hotels,
collective agreement restaurants, travel agencies,
and have validation by sports clubs, airlines, cultural
the administrative events and venues, etc.)
authority.
04 & Government Wage Subsidy SchemesCountry Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Germany Short-time work - Significant reduction of workload - As per current law, - Employees will receive https://www.arbeitsagentu
compensation (10% for at least 10% of employees) short time work 60-67% of their latest net r.de/datei/anzeige-
- Notification of short time work subsidies will be salary (if the working time of kug101_ba013134.pdf
granted for up to 12 an employee has reduced at
- Working time accounts must be months. The Federal least 50%, the amount
reduced to zero Ministry of Labour and increases to 70-77% as of the https://www.twobirds.com
- Employee is subject to payment of Social Affairs (“BMAS”) 4th month and 80-87% as of /en/news/articles/2020/ge
social security contributions can set an extension up the 7th month; this increase is rmany/managing-hr-costs-
to a total of 24 months currently limited until in-germany-during-the-
by decree. So far the 31 December 2020) crisis-short-time-work
BMAS has not exerted - Capped at the social security
this possibility contribution ceiling: 6.900 https://www.twobirds.com
Euro gross in West Germany /en/news/articles/2020/gl
and 6.450 Euro gross in East obal/multinational-
Germany employer-series-tackling-
coronavirus-in-germany
Government Wage Subsidy Schemes & 05Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Hungary Short time work - The employer and the employee - State subsidy is for 3 - The amount of the state https://www.twobirds.com
subsidy can agree on reduced working time months subject to subsidy is 70% of lost salary /en/news/articles/2020/h
(last updated on (min 25 % but max 85 % of original certain conditions (i.e. 70 % of the 75 to 15 % of ungary/covid-19-the-much-
working time) the base salary). awaited-new-rules-of-
- Employer must evidence that (i) - The cap on the state subsidy hungarian-short-time-
- The application for working-and-the-state-
the difficulties in the business are the state subsidy can be is HUF 112,418 per employee.
directly related to the COVID-19 subsidy-scheme
submitted until 31
pandemic and the state of August 2020 for a 3
emergency; (ii) retention of the months period ending
employees is in the interest of the on 31 December 2020.
national economy, etc.
- The subsidy is applicable for
temporary agency-workers as well as
for home office or telework
- The employee and the employer
must agree on “individual
development time” (e.g. attending
trainings, developing the employer’s
equipment) for the duration of the
subsidy if the reduction in working
time does not exceed the half of the
working time being in effect before
the modification. If the reduction in
working time exceeds the half of the
original working time, the parties
can agree on “individual
development time”. This is 30 % of
the reduction in working time. This
time can be scheduled for the
duration of the subsidy or anytime
in 2 years after that
- The employer must not terminate
the employment of the given
employee for the duration of subsidy
plus one month
06 & Government Wage Subsidy SchemesCountry Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Italy Wage - Companies in all markets are - Duration is 14 weeks - Non-executive employee https://www.lavoro.gov.it/
supplementary covered (one stage of 9 weeks will receive 80% of the salary Pagine/default.aspx
fund followed by further 5 - Capped at 1.300€ gross
weeks) in the period
from 23 February until https://www.twobirds.com
31 August. In case of /en/news/articles/2020/gl
further needs to obal/covid-19-guidance-
suspend or reduce for-employers-in-italy
working time for
COVID-19 reasons,
companies may apply
for a new request of
maximum 4 week.
Netherlands 'NOW' Scheme - Employers suffering a drop in Four (4) months (NOW - 90 percent of the employers’ https://business.gov.nl/sub
2.0 revenues of at least 20 percent in 2.0. is the successor of salary costs multiplied by the sidy/corona-crisis-
any four consecutive months’ period NOW 1.0, which had a actual percentual drop in temporary-emergency-
between 1 June and 30 November three (3) month revenues measure-now/
2020 duration). - Any individual employee’s
gross monthly salary in https://www.twobirds.com
excess of EUR 9,538 will not /en/news/articles/2020/ne
be compensated therlands/covid-19-
guidance-for-employers-in-
the-netherlands
Government Wage Subsidy Schemes & 07Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Poland Wage • Concluding agreement with trade - From the month of - Economic downtime subsidy – 50% https://www.gov.pl/web/ta
unions/employee representatives submitting the application for of the minimum wage i.e. (approx.
supplementary rczaantykryzysowa
schemes • Submitting an application until 27 September the period not longer than 3 EUR 290)
2020 months. • - Decreasing the working hours – up to
• Fall in turnover due to COVID-19 not less than 50% of the lowered remuneration; https://www.twobirds.com
by: however, no more than 40% of the
average wage (approx. EUR 476) /en/news/articles/2020/po
1. 15% calculated as the ratio of total turnover land/covid-19-guidance-
over any two consecutive calendar months • No co-financing for remuneration
after 31 December 2019 to the day preceding above PLN 15,595 (EUR 3,487) (if, for-employers-in-poland
application date, compared to the total remuneration in the month preceding
turnover from the corresponding two the month of the application, was
consecutive calendar months of the previous higher than 300% of the average
year), or monthly remuneration in Poland from
the previous Q)
2. 25% calculated as the ratio of turnover from
any given calendar month/month after 31 - Fall in turnover subsided by the
December 2019 to the day preceding local authorities – from 50% to 90%
application date, compared to the turnover of the minimum wage depending on
from the previous month the fall in turnover
(approx. EUR 290-523)
• Fiscal liabilities, SSCs, health insurance,
Guaranteed Employment Benefit Fund, Labour
Fund or Solidarity Fund contributions
regulated until the end of Q3 of 2019 (limited
list of exceptions)
• There are no grounds to announce bankruptcy
• Not terminating employment due to
reasons not attributable to employee
during the period of co-financing,
otherwise the co-financing granted in
relation to the terminated employee
needs to be returned together with interest
in the amount of 0,98% (0,61% as of 1 August
2020) calculated as of the day of the co-
financing payment.
08 & Government Wage Subsidy SchemesCountry Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Wage subsidy without Identical criteria than for wage subsidyThe joint maximum period of 3 • Up to 50% of employee's https://www.gov.pl/web/rozwoj/t
decreasing employees’ scheme, above, supplemented by: months calculated as of the remuneration; however, not more arcza-40-z-podpisem-prezydenta-
working time • For the employees / workers not previouslyapplication month. than 40% of the average monthly rp2
(NEW: under Anti- covered by maximum period of co- remuneration in Poland from the
Crisis Shield 4.0 Act) financing due to decrease of working time or previous Q, i.e. approx. PLN
economic downtime. 2,132 (EUR 476)
• For the employees / workers not covered by • Employees' social security
the co-financing possibilities under contributions (SSCs) due from
previous acts (Anti-Crisis Shields 1.0 - 3.0) at the employer from granted co-
the same time. financing.
• For the employees not simultaneously No co-financing for remuneration above
covered by downtime on the basis of PLN 15,595 (EUR 3,487) (if,
Labour Code provisions. remuneration in the month preceding
the month of the application, was higher
• No agreement with trade unions/employees than 300% of the average monthly
representatives is required. remuneration in Poland from the
Not terminating employment due to previous Q)
reasons not attributable to employee
during the period of co-financing, otherwise
the whole amount of co-financing granted in
relation to all employees covered by the
application needs to be returned together with
interest in the amount of 8% per year from
calculated as of the day of the co-financing
payment.
Wage supplementary • Status of micro, small or medium entrepreneur From the month of • Depending on the fall in turnover: https://www.gov.pl/web/tarczaan
schemes from local (SMEs) submitting the application for • by at least 30% - co-financing in the tykryzysowa
authorities Starosta • Fall in turnover due to COVID-19 at least by the period not longer than 3 maximum sum of 50% of
30% months remuneration of individual
https://www.twobirds.com/en/ne
• Keeping in employment employees covered by employees; however, not more than
ws/articles/2020/poland/covid-
the agreement with the Governor of the County 50% of the minimum remuneration,
19-guidance-for-employers-in-
(Starosta) during the co-financing period i.e. PLN 1,300 (EUR 290)
poland
(under the sanction of returning the aid • by at least 50% - co-financing in the
proportionally) maximum sum of 70% of
• State aid cannot be duplicated (cover same remuneration of individual
costs) employees; however, not more than
70% of the minimum remuneration,
• Fiscal liabilities, SSCs, health insurance, i.e. PLN 1,820 (EUR 406)
Guaranteed Employment Benefit Fund, Labour
Fund or Solidarity Fund contributions • Fall in turnover by at least 80% - co-
regulated until the end of Q3 of 2019 financing in the maximum sum of 90%
of remuneration of individual
• There are no grounds to announce bankruptcy employees; however, not more than
90% of the minimum remuneration,
i.e. PLN 2,340 (EUR 523)
Government Wage Subsidy Schemes & 09Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
(continued) This scheme has
expired as of
Poland 30.06.2020
(deadline for
submitting the
applications)
10 & Government Wage Subsidy SchemesRE CRITERIA (i) – Subjects may choose to
Slovakia First economy aid (i)Keeping working positions when - The aid shall be ask for one of the following state subsidy:
https://www.neprepustaj.s
for employers and the extraordinary situation (in provided for the period (i) Government will contribute to the
k/
self-employed (in Slovak: mimoriadna situácia) is starting on 13 March employees' salaries, and thus will contribute
https://www.employment.g
80% of employees' monthly average salaries
Slovak: SZČO) declared, despite of limitation or 2020 (i.e. from the day ("kurzarbeit") ov.sk/sk/koronavirus-
closure of proper operation - when the relevant - capped at 880 EUR per person monthly pracovna-socialna-oblast/
applicable to employers and self- authority issued a (ii) Government will contribute from 90 EUR
(small, medium employed resolution on closure or to 540 EUR depending on how the subjects
and big limitation of the are affected by the pandemic. As regards the
https://korona.gov.sk/
enterprises ("CRITERIA (i)") period of March 2020, the government will
operations) and will contribute 90 EUR per employee in case of
included) (ii)Closure of operations due to end on the last day of subject with drop in revenues from 10% to
20%. The subject with drop in revenues from
pandemic based on relevant the calendar month in 20% to 30% will get 150 EUR per employee.
authority's decision, and which the above
Those with revenues dropped from 30% to
40% will get 210 EUR per employee, and
impossibility to assign work to the resolution will be those with more than 40% drop will get 270
employees - applicable to employers dissolved by the
EUR.
and self-employed relevant authority
As regards the period of April,May aand June
2020 the government will contribute 180
EUR per employee in case of subjects with
("CRITERIA (ii)") drop in revenues from 20% to 40%. The
subjects with drop in revenues from 40% to
(iii)Decrease in revenues due to 60% will get 300 EUR per employee. Those
pandemic (drop of 20, 40, 60 and whose revenues dropped from 60% to 80%
will get 420 EUR per employee, and those
80%)- applicable to self-employed with more than 80% drop will get 540 EUR
only As the situation is improving gradually, in
June the employers shall be allowed to switch
("CRITERIA (iii)") between two above alternatives (i) or (ii)
depending on what is more advantageous for
them. They shall be also allowed to apply
different alternatives on their various
operations according to their needs and
preference.
RE CRITERIA (ii)Government will pay
80% of employees' monthly average salaries -
Capped at 1,100 EUR per person monthly
RE CRITERIA (iii) Government will
contribute from 90 EUR to 540 EUR
depending on how the self-employed are
affected. As regards the period of March
2020, the government will contribute 90 EUR
per employee in case of self-employed with
drop in revenues from 10% to 20%. The self-
employed with drop in revenues from 20% to
30% will get 150 EUR per employee. Those
with revenues dropped from 30% to 40% will
get 210 EUR per employee, and those with
more than 40% drop will get 270 EUR.
As regards the period of April,May and June
2020 the government will contribute 180
EUR per employee in case of self-employed
with drop in revenues from 20% to 40%. The
self-employed with drop in revenues from
40% to 60% will get 300 EUR per employee.
Those whose revenues dropped from 60% to
80% will get 420 EUR per employee, and
those with more than 80% drop will get 540
EUR
Government Wage Subsidy Schemes & 11Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Spain “ERTE” - Company must prove reduction in - For force majeure - Government will pay 70% of https://www.sepe.es/Hom
Reduction of workload due to force majeure or grounds the measure the employees' regulatory eSepe/COVID-19.html
working time or economical, technical, will last at most, until base for the first six months
suspension of organizational or productive causes 30 September, 2020. and 50% from the seventh
contracts month https://www.twobirds.com
- For economic, /en/news/articles/2020/sp
technical, - Capped at EUR 1,411.83 ain/covid19-guidance-for-
organizational or employers-in-spain
productive grounds the
measure may be
implemented as much
as the subsiding
grounds persist
Sweden Short-time work - Working time needs to be reduced - The subsidy is - Employees receive 96%, https://tillvaxtverket.se/en
allowance scheme to 20%, 40%, 60% or 80% of normal available retroactively 94% 92,5% or 88% of their glish/short-time-work-
working time from 16 March 2020 normal fulltime salary allowance.html
- Employer needs to show that it is and for a six months - Capped at a monthly salary
suffering financial difficulties period (however the of SEK 44,000, employer
80% level only during https://www.twobirds.com
directly caused by the Covid-19 needs to fill gap /en/news/articles/2020/s
pandemic May-July), with
possible extension for weden/covid-19-guidance-
another three months for-employers-in-sweden
12 & Government Wage Subsidy SchemesUnited Coronavirus Job - Any UK organization with a PAYE - Scheme operates from 1 - From 1 March 2020 to 31 July The government has created a
payroll system on or before 19 March March 2020 until 31 2020, 80% of their 'usual number of guidance pages and
Kingdom Retention Scheme
2020, enrolled for PAYE online and a October 2020 monthly wage costs' for other materials regarding the JRS,
UK bank account furloughed hours, subject to a which include the following:
- Scheme will close to new
- Employers can claim Scheme grants in entrants from 30 June cap of£2,500 per calendar
respect of employees who were on their 2020. Employees must month for each employee plus • A general JRS guidance
PAYE payroll on or before 19 March have been furloughed for employer NICs and employer page for employers,
2020 and which were notified to HMRC a full three weeks prior to pension contributions which is available HERE.
on a Real Time Information (RTI) this date, so the final date - From 1 August 2020 to 30 • A guidance page on
submission on or before 19 March 2020 to furlough an employee August 2020, 80% of their 'usual employee eligibility,
- Employers must instruct the employee for the first time is 10 monthly wage costs' for which is available HERE.
in writing to cease work “by reason of June). An exception furloughed hours, subject to a • Guidance on calculating
circumstances arising as a result of applies to employees who cap of£2,500 per calendar claims, which is available
coronavirus or coronavirus disease Or are returning from month for each employee HERE and HERE.
measures taken to prevent or limit its statutory parental leave or (excluding NICs and pension
• Worked examples of
further transmission”. military mobilisation as contributions).
an armed forces reservist Flexible Furlough claims
- Agreement to furlough an employee - From 1 September to 30 which are available
after 10 June 2020, September, 70% of wages for
(which may be made by collective provided (1) the leave HERE.
agreement) must be: (1) made before the furloughed hours (up to a
started before 10 June maximum of £2,187.50).
beginning of the period to which the JRS 2020; (2) the employer The Treasury Direction to HMRC
claim relates (although it may Employers must pay at least the in relation to the JRS is available
previously furloughed remaining 10%, plus all NICs
subsequently be varied); (2) made in other employees prior to HERE.
writing or confirmed in writing by the and pension contributions
30 June 2020; and (3) the
employer (including by email); and (3) employee meets the - From 1 October to 30 October, Bird&Bird's guidance can be
incorporated (expressly or impliedly) in relevant payroll eligibility 60% of wages for furloughed found here
the employee's contract. criteria (“Returning hours (up to a maximum of
-A record of the furlough Employees”). £1,875). Employers must pay at https://www.twobirds.com/en/n
communication must be kept until at least the remaining 20%, plus all ews/articles/2020/uk/uk-
- Employers have until 31 NICs and pension contributions
least 30 June 2025 July to make any claims coronavirus-job-retention-
in respect of the period to - A Job Retention Bonus will be scheme-an-overview
- Until 1 July 2020, furlough must be for
three consecutive weeks 30 June introduced to help firms retain
furloughed workers. Employers
- During furlough the employee(s) - From 1 July until the will receive a one-off bonus of https://www.twobirds.com/en
cannot carry out any revenue generative closure of the Scheme, £1,000 for each furloughed /news/articles/2020/uk/covid
work employers can enter employee who is brought back to 19-guidance-for-employers-in-
flexible furlough work and still employed as of 31 the-uk
- From 1 July 2020, employers can bring arrangements
furloughed employees back to work part- January 2021, subject to
time, and claim a grant for any of their - Following submission eligibility criteria.
normal hours not worked. When doing for a JRS Grant, - The government has also
so, employers will need to report and employers must keep a introduced new subsidy and
claim for a minimum period of a week. copy of all records for 6 funding schemes for young
years, including: apprentices and workers aged
- Employers must submit claims for JRS
grants to HMRC •the amount claimed and under 25.
claim period for each
- Employers are required to make the employee;
usual PAYE payroll deductions (ie.
•the claim reference
number;
Government Wage Subsidy Schemes & 13Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
income tax and NICs) from JRS grants •their calculations;
payable to furloughed employees
•usual hours worked,
including any calculations
that were required, for
employees they flexibly
furloughed; and
•actual hours worked for
employees they flexibly
furloughed.
APAC
Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Australia JobKeeper’ - Employer must have a substantial - Jobkeeper scheme - Flat rate payment of $1,500 https://treasury.gov.au/coro
payment under decline in turnover (as defined) starts on 30 March per fortnight for every eligible navirus/jobkeeper
the Coronavirus - Payments are made for each 2020 and ends on 27 employee, to be paid by the
Economic eligible employee who remains in September 2020 business to the employee https://www.twobirds.com/e
Response employment during a 'jobkeeper n/news/articles/2020/austra
Package fortnight' (the fortnight beginning lia/covid-19-guidance-for-
(Payments and on 30 March 2020 and each employers-australia
Benefits) Act subsequent fortnight ending on 27
2020 September 2020)
- The 'one in, all in' rule requires
employers nominate all eligible
employees for participation in the
scheme; however, individual
employees may choose not to
participate
14 & Government Wage Subsidy SchemesCountry Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
The eligibility criteria vary for national and local regulations
China Government aid Examples of regional policies:
- The durations of - It depends on the https://www.twobirds.com/e
program Lump-sum employment stabilisation subsidy in Shanghai: schemes vary in requirements in the related n/news/articles/2020/china/
including This is designed for enterprises in Shanghai suffering difficulties due to the great impact of
accordance with national and local regulations a-brief-guide-in-responding-
COVID-19, (a) falling under certain industry categories, (b) being incorporated before 1
exemption or January 2020, (c) having participated in social insurance in accordance with applicable laws
and regulations, and (d) with a layoff ratio in 2019 not higher than 5.5% national and local to-the-2019-novel-
coronavirus-covid19-china
extension of Subsidies in Beijing:
regulations. Please
social insurance
- Repayment of unemployment insurance contributions to social enterprises that incurred
temporary business difficulties expected to be overcome and make efforts not to lay-off compare the examples Example of regional policies: http://www.gov.cn/zhengce/
contribution,
employees or reduce the layoff scale;
- Social insurance subsidy for medium or micro enterprise satisfying certain thresholds of for the major cities, content/2020-
Beijing; and 03/20/content_5493574.htm
exemption or - Training fee subsidy, etc.
Beijing and Shanghai Lump-sum employment
extension of tax http://www.chinatax.gov.cn/
stabilisation subsidy in
Extension of preferential value-added tax (VAT) policy for small-scale taxpayers to 31
payments,
December 2020:
chinatax/n810219/n810780/
On 28 February 2020, the State Council announced that from 1 March to 31 May 2020,
small-scaled taxpayers in Hubei province can be exempted from VAT, and small-scaled Shanghai: c5149568/content.html
repayment of taxpayers outside Hubei province can pay VAT at a reduced rate of 1% (previously 3%). On
It will be paid at the rate of
30 April 2020, the State Council announced the extension of the effective period to 31
unemployment December 2020. Small-scale taxpayers are those engaged in production of goods or
provision of taxable labor services with an annual sale amount (subject to VAT) of RMB 0.5
http://www.beijing.gov.cn/z
insurance, social
million or less, and those engaged in wholesale or retail of goods with an annual taxable
sales amount of RMB 0.8 million or less RMB 800 per employee hengce/zhengcefagui/20200
insurance Financial aid to private companies: based on the number of 5/t20200507_1891088.html
subsidy, training
The State Council has been calling for financial support to private companies and small and
medium enterprises. In response, the Beijing government has issued an implementation
opinion on 26 April 2020 requesting authorities, financial institutions and related
employees included in the http://www.xinhuanet.com/e
fee subsidy, organisations to support the development of private businesses. This includes requiring
banks and/or financial institutions to provide a RMB 50 billion discount on bills to private
enterprise social insurance nglish/2020-
exemption or
companies and small and micro enterprises before the end of 2020, and requesting local
authorities to provide RMB 3 billion to a defined "pilot area" every year during the defined
"pilot period" as financial support to private companies and small and micro enterprises,
payment record for the 05/29/c_139099211.htm
reduction of rent and to exempt startup companies located in a startup incubator from VAT month immediately prior to
fees, extension of
The Report on the Work of the Government released on 22 May 2020 introduced more
government aid measures. For example: the application, capped at
bank loans might
- exempting all micro, small, and medium enterprises* (MSMEs) from contributions to
basic pension insurance, unemployment insurance and work-injury insurance schemes until RMB 5,000,000 in total
the end of 2020;
apply, especially - exempting VAT on services such as public transportation, restaurants and hotels, tourism
and entertainment, and culture and sports until the end of 2020;
to small and - reducing or cancelling civil aviation development fund contributions and port development
medium fees until the end of 2020;
- postponing corporate income tax payments by micro and small businesses (as defined
enterprises, below) until 2021;
- extending the policy of reducing electricity prices for general industrial and commercial
depending on businesses by 5% to the end of 2020;
local regulations - cutting the rates for broadband and dedicated internet access services by 15% on average;
- lowering or exempting rents for state-owned premises, and encouraging all other types of
property owners to reduce, waive, or defer rent payments, in doing which they will receive
policy support from the government;
- postponing loan payments for MSMEs until March 2021, and encouraging banks to issue
new loans to such enterprises;
- the government providing more than 35 million vocational skills training opportunities in
2020 and 2021; and
- cancelling all employment-related government charges in 2020.
*MSMEs classification standard: State Council classifies enterprises into four categories
(micro, small, medium and large-scale enterprises) by measuring their number of
employees and the annual income. Standards vary by sectors. For example, for an
enterprise providing technology and information service, it will be classified as:-
(a) micro enterprise, if the number of employees is less than 10 and the annual income is
less than RMB 500,000;
(b) small enterprise, if the number of employees reaches 10 but is less than 100, and the
annual income reaches RMB 500,000 but is less than RMB 10 million;
(c) medium-scale enterprise, if the number of employees reaches 100 but is less than 300,
and the annual income reaches RMB10 million but is less than 100 million; or
(d) large-scale enterprise, if the number of employees reaches 300 and the annual income
reaches 100 million.
Government Wage Subsidy Schemes & 15Country Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
ESS:
Hong Kong "Employment Support ESS: ESS: The wage subsidy is calculated based https://www.twobirds.com/en/news/
Scheme" ("ESS") - A HK$81 billion ESS has been introduced to provide wage on 50% of the actual wages paid to articles/2020/china/hong-kong-
- The wage subsidy is for a period
subsidies to eligible employers to retain their employees employees in a "specified month"*, capped government-to-provide-wage-
of six months, to be disbursed to
at HK$18,000 per month, i.e. the subsidies-to-employers;
- Employers have to undertake (i) not to implement employers in two payments.
Sector-specific schemes redundancies during the subsidy period, which is six months maximum subsidy per headcount is
Applications for the first tranche
(including catering, from June to November 2020 and (ii) to spend all wage HK$9,000. For MPF, "wages" refer to
of the scheme took place from 25
construction and subsidies from the Government in paying wages to their Relevant Income of the specified month https://www.twobirds.com/en/news/
May to 14 June 2020. The wage
transport (mainly taxi employees. If an employer fails to comply with the (including salaries, subsidies, allowances, articles/2020/hong-kong/hong-kong-
undertaking, the Government will claw back the unspent subsidy is expected to be
and red minibus drivers) commissions, and bonuses, etc.), or wage-subsidy-subject-to-employers-
balance of the wage subsidy andor impose penalty disbursed to the majority of
sectors which are not otherwise referred to as actual salaries. undertaking
employers in three to four weeks
completely covered by the - After approval of the ESS application, the number of paid Employers are free to choose how the
employees on payroll in any one month of the subsidy period after submission of the
Mandatory Provident subsidy is allocated amongst employees,
between June and August 2020 shall not be less than the application. The second tranche
Fund (MPF) scheme) provided that the entire subsidy is used to https://www.twobirds.com/en/news/
number of paid or unpaid employees in March 2020. of the wage subsidies will be
pay wages and no employees are made articles/2020/hong-kong/further-
However, the ESS does not forbid employers from reducing disbursed in September 2020
wages during the subsidy period redundant during the subsidy period. clarification-to-hong-kong-
One-off lump sum - Employers and SEPs applying employment-support-scheme-on-20-
- All employers, regardless of industry, who have been
subsidies for self- for the ESS are required to april-2020
making MPF contributions for employees (including Master
employed MPF Trust Schemes and Industry Schemes) or who have set up authorise the ESS processing *With regards to a "specified month",
contributors MPF-exempted Occupational Retirement Schemes agent (appointed by the employers may choose any one month
Ordinance (ORSO) schemes are eligible, except those on the Government) to receive MPF from December 2019 to March 2020 https://www.twobirds.com/en/news/
exclusion list (employees of the Government, statutory bodies record certificates directly from taking into account their own articles/2020/hong-kong/update-
and Government s- subvented organisations). Employers the MPF trustees, in order to circumstances. If the number of hong-kong-employment-support-
with MPF accounts set up on or after 1 April 2020 will not be
confirm the information related employees and payrolls in January are scheme-improvement-measures-and-
eligible for the first tranche of wage subsidy
to MPF contributions. Employers higher than those in subsequent months, further-clarifications
are not required to submit such the wage subsidies to be disbursed by the
Sector-specific measures: the Government will provide one- information at the time of Government will enable employers to
off relief grants/cash subsidies to sectors which are application, and MPF trustees rehire employees to meet their https://www.coronavirus.gov.hk/pdf/
completely or partly closed due to the measures for will not charge employers and operational needs. The subsidies will be fund/20200408_supplementary_inf
safeguarding public health imposed by the Government. Each SEPs any fees on the issue of the calculated based on the number of ormation_en.pdf
sector-specific scheme has its specific eligibility criteria. For certificates employees (including employees who
example, for the Catering Business (Social Distancing)
Subsidy Scheme, applicants should undertake that there will were in the job but are currently on no-
be no redundancy of staff for three months on receipt of the pay leave or half-pay leave) and their https://www.coronavirus.gov.hk/pdf/
first tranche of subsidy and another three months on receipt Sector-specific measures & One- respective wages in the "specified month" fund/20200408_ppt_of_CE_press_c
of the second tranche. They should also undertake that not off lump sum subsidies for self- onference_en.pdf
less than 80% of the subsidies for respective months would employed MPF contributors:
be used to pay salaries of staff working at the premises these are one-off relief Sector-specific measures: these are one-
grants/cash subsidies off relief grants/cash subsidies. For https://www.coronavirus.gov.hk/pdf/
One-off lump sum subsidies for self-employed MPF example, the Catering Business (Social fund/CE-Measure-12-eng.pdf
contributors: self-employed persons (SEPs) who have made Distancing) Subsidy Scheme provides
contributions to the MPF between 1 January 2019 and 31 subsidies to eligible catering outlets
March 2020 are eligible. In other words, SEPs who have set ranging from HK$250,000 to HK$2.2 https://www.info.gov.hk/gia/general
up an MPF account on or before 31 March 2020 (excluding million based on the size of their premises /202004/20/P2020042000538.htm
backdating) and with that account remaining open as of the
same date may apply
One-off lump sum subsidies for self- https://www.info.gov.hk/gia/general
employed MPF contributors: this is a one- /202005/12/P2020051200764.htm
off lump sum subsidy of HK$7,500 for
each qualified SEP
https://gia.info.gov.hk/general/2020
05/12/P2020051200764_341204_1_
1589292418734.pdf
https://www.info.gov.hk/gia/general
/202006/23/P2020062300887.htm
16 & Government Wage Subsidy SchemesCountry Name of Eligibility criteria Duration of scheme How much can be Useful links
scheme claimed per employee?
Possible cap?
Singapore "Jobs Support - The Government will support - JSS: The Government - JSS: Wage support for the https://www.twobirds.com/e
Scheme" ("JSS") Singapore companies and workers in will co-fund the first month of April 2020 and May n/news/articles/2020/singa
the coming months, with a $4 billion S$4,600 of gross 2020 will be topped-up to pore/covid-19-
package monthly wages 75% for all sectors to support understanding-the-job-
"Wage Credit support-scheme-in-singapore
- JSS will help enterprises retain (including employee firms during the 'circuit
Scheme" ("WCS") CPF contributions but breaker' period. Wage
local workers, while the enhanced
WCS will support wage increases for excluding employer support for other months will https://www.twobirds.com/e
Singaporean workers CPF contributions) remain unchanged as below: n/news/articles/2020/singa
paid to each local pore/covid-19-employment-
- JSS: All employers who have made • Tier 1: aviation and update-prevention-of-loss-of-
employee for 10 tourism – 75% of the first
CPF contributions for their local months jobs-government-wage-
employees (Singapore Citizens and S$4,600 of gross grants-for-singapore-
Permanent Residents) will qualify monthly wages per local employers
for the payout. Employers in the - Enhanced WCS: The employee;
employer exclusion list are not years of 2019 and 2020 • Tier 2: food services - https://www.twobirds.com/e
eligible for the JSS 50% of the first S$4,600 n/news/articles/2020/singa
- WCS: All employers giving wage of gross monthly wages pore/stronger-tomorrow-a-
increases in 2013 – 2020 to per local employee; and comprehensive-legal-and-
regulatory-guide-on-
Singapore Citizen employees who • Tier 3: all other services - navigating-covid-19
received CPF contributions from a 25% of the first S$4,600
single employer for at least 3 of gross monthly wages
calendar months in the preceding per local employee https://www.iras.gov.sg/iras
year; have been on the employer's home/Schemes/Businesses/J
payroll for at least 3 calendar • For employers whose firms obs-Support-Scheme--JSS-/
are not listed under the List
months in the qualifying year (i.e.
of Permitted Services and
employer must have paid employee are not allowed to resume https://www.iras.gov.sg/IRA
CPF contributions for at least three operations, such employers SHome/Schemes/Businesses
calendar months in qualifying year); will continue to receive 75% /Wage-Credit-Scheme--
have at least $50 gross monthly wage support throughout WCS-/
wage increase (up to the Gross the period for which they
Monthly Wage ceiling); must not are not allowed to resume
also be the business owner of the operations, or until August
same entity 2020, whichever is earlier
- Enhanced WCS: The
Government co-funding ratios
for wage increases in 2019 and
2020 will be raised to 20% and
15% respectively. The qualifying
gross wage ceiling will also be
raised to S$5,000 for both years
Government Wage Subsidy Schemes & 17Your Contacts
Dr. Martin Nebeling Emily Clark Guido Voelkel, Carina Seum
Partner, Germany Senior Associate, UK LL.M. Associate, Germany
Associate, Germany
Tel: +4921120056000 Tel: +442074156781 Tel: +4969742226000
martin.nebeling@twobirds.com emily.clark@twobirds.com carina.seum@twobirds.com
Tel: +4921120056000
guido.voelkel@twobirds.com
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18 & Your Contactstwobirds.com
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