GoGlobal Consolidates APAC Countries' Government Covid-19 Programs for Employer of Records

Due to the magnitude, language barriers and confusing structures of COVID-19 assistance programs, GoGlobal Asia has updated programs for COVID-19 government support focused solely on companies that use Employer of Record (“EOR”) services in the region.

It does not include corporate programs such as financing or subsidies for companies with direct subsidiaries.

GoGlobal, headquartered in Tokyo, Japan, is at the epicenter of the Coronavirus (COVID-19) outbreak. Ryo Yazu, Representative Director of GoGlobal Japan stated, “We hope that the information helps employers ask the right questions since the information put out to market is often confusing and contradictory. We view this as a service to the employees we support in the region as well as those that are in similar situations.”

Here are the COVID-19 government support programs (as of April 27th, 2020):

Australia

Program: Jobkeeper Allowance

Details: $750 per week until the lockdown is lifted.
Start date: Mar 1st, 2020
How to apply: Employees need to register for jobkeeper allowance with their employers and submit their passports for verification.

Cambodia

Program: 60% minimum wages for workers employed by suspended factories due to COVID-19

Eligibility: Workers are required to attend between one and two weeks of short-term skills training organized by the Tourism Ministry.
Details: Employers would be required to pay 40% while the government would provide 20% (US$190).

China

Program: Short-term Social Security Employer Relief (temporary program)

Eligibility: Employer who is a corporation (other than a tax-exempt entity or public institution) covers, small businesses, medium-sized enterprises, and general taxpayer enterprises
Details:
- Since February 2020, except for Hubei Province, all provinces can exempt the payment part of three social insurance units of small, and medium-sized enterprises, with the exemption period not exceeding 5 months. The payment part of social insurance items (Pension, Unemployment, industrial injury, medical; the contribution rate various by provinces /cities) of General taxpayer enterprises and other insured corporations (excluding government agencies and institutions) can be reduced in half, and the period of reduction shall not exceed 3 months.
- Since February 2020, Hubei Province can exempt three payment parts of social insurance items of all types of insured corporation (excluding government agencies and institutions), with the exemption period not exceeding 5 months.
Start date: From February and up to 6 months for different types of enterprises
How to apply: No need to apply, local government will refund or exempt at the time when qualified employers (who are small, medium-sized, General taxpayer enterprises) report employee’s monthly social security fund. Enterprises with serious difficulties in production and operation affected by the epidemic situation need to apply for delaying the payment of social insurance premiums for a period not exceeding 6 months in principle, during which the overdue fine shall be exempted.

Hong Kong

Program: Employment Support Scheme

Eligibility: The Government will provide wage subsidies to eligible employers who undertake not to make workers redundant during the subsidy period, and to spend 100% of the subsidy on paying wages for their employees. All employers who have been making Mandatory Provident Fund (MPF) contributions or have set up Occupation Retirement Schemes for employees are eligible (except the HKSARG, statutory bodies and subvented staff in Government funded organizations, etc). 1.5 million employees are expected to benefit.
Details: Wage subsidies for each employer calculated on 50% of salary at a “specified month” (capped at a salary of $18,000) for 6 months. To be disbursed to employers
in two tranches, with the first before end-June 2020. Grant a one-off lump-sum subsidy of $7,500 to about 215,000 self-employed persons who have made MPF contributions in the past 15 months.
Start date: Starting from Apr for 6 months
How to apply: Details to be announced

Japan

Program: Special Measures on Employment Adjustment Subsidies

Eligibility: Employers who force employees to refrain from working without paying salaries or paying the leave allowance instead of salaries. Leave allowance can be paid to employees in case of employers’ reason.
Details:
- Employers who terminate no employees due to COVID-19 influences on business
  - Small- and medium-sized business owners: previous year’s average daily salary x 90%
  - Large enterprise owners: previous year’s average daily salary x 75%
- Employers who terminate employees due to COVID-19 influences on business
  - Small- and medium-sized business owners: previous year’s average daily salary x 80%
  - Large enterprise owners: previous year’s average daily salary x 67%
- Employers let employees have training (including e-learning at home)
  - Small- and medium-sized business owners: additional allowance of JPY2,400
  - Large enterprise owners: additional allowance of JPY1,800
Start date: For leave from January 24 to June 30. Due date: within 2 months after the last absent date.
How to apply: Employers submit application to Unemployment Office that includes application form, agreement between employer and employee for leave, schedule for leave allowance, and schedule for training.

Malaysia

Program: Bantuan Prihatin Nasional, one-off cash

Eligibility:
1. RM1,600 to households earning a monthly income of RM4,000 and below. Payment of RM1,000 will be paid in April 2020, and RM600 in May 2020.
2. RM1,000 to households earning over RM4,000 to RM8,000. RM500 will be paid in April 2020, and the remaining RM500 in May.
3. RM800 to single individuals 21 years old and above with a monthly income of RM2,000 and below. The RM500 payment will be paid in April 2020, and the remaining RM300 in May 2020.
4. RM500 to single individuals aged 21 years and over with a monthly income of RM2,000 to RM4,000. Payment of RM250 will be made in April 2020 and the remaining RM250 in May.
Start date: April and May 2020
How to apply: Taxpayers do not need to make any application as they are already on the LHDN taxpayers’ database. Those who are not registered with BSH or LHDN can make a new application on the official LHDN website.

Program: Wage Subsidy Programme Expansion

Eligibility: The government will provide a wage of RM600 per month for three months
1. Employer :
  - 50% decrease in income since 1 Jan 2020. (No condition for 75 employees or fewer)
  - Retaining their employees for at least 6 months, which includes 3 months during the subsidy and 3 months post-subsidy.
  - Not allowed to deduct an employee’s existing pay.
2. Employee: Earning less than RM4,000
Details: Size of Enterprise
- 75 employees or fewer: RM1,200 per employee per month
- 76-200 employees: RM800 per employee per month
- 201 employees and above: RM600 per employee per month (max 200 employees eligible)
Start date: April 9th, 2020
How to apply: Applications can be submitted by Employers through prihatin.perkeso.gov.my

Program: Employment Retention Program (ERP)

Eligibility: ERP is immediate financial assistance provided for employees who have been instructed to take no paid leave by their employer who is economically affected by COVID-19 pandemic.
1. All private sector employees including temporary employees who have registered and contributed to EIS (Employment Insurance System).
2. Limited to employees with a monthly salary of RM4,000 and below.
3. Employers who have implemented no-pay leave (30 days minimum) for a period of 1 to 6 months, with the No-pay leave notice issued beginning March 1st, 2020.
Details: RM600 per month (max of 6 months)
Start date: March 20th, 2020
How to apply: Applications must be made by employers on behalf of their employees using Form ERPC-19.

Philippines

Program: COVID 19 Adjustment Measures Program (CAMP) by the Department of Labor and Employment (DOLE)

Eligibility:
1. All employees of companies (BOTH TEMPORARY or PERMANENT, FULL TIME or PART TIME) located across the Philippines; and
2. Company operations either TEMPORARILY CLOSED or applied for WORK FROM HOME set up
Details: 5,000 PHP or 100 USD
Start date: March 21st, 2020 and onwards
How to apply:
1. The company emails 2 documents to the DOLE: (1) the latest payroll of all employees and (2) the downloadable establishment report application form.
2. DOLE deposits the financial assistance directly to employer’s bank account based on the payroll submitted, within three (3) days upon submission; employees without bank accounts shall receive money through remittance companies.

Singapore

Program: Jobs Support Scheme (JSS)

Eligibility: Local employees (Singapore Citizens and Permanent Residents)
Details: Government will help employers by paying subsidiaries(Capped at first $4,600 of gross monthly wages) based on calculations below
1. 75% of Oct 2019 wages
  25% of Nov 2019 wages
  25% of Dec 2019 wages
  Payout in April 2020
2. 75% of Nov 2019 wages
  Payout in May 2020
3. 25% of Feb 2020 wages
  25% of Mar 2019 wages
  (75% of Apr 2020 wages – 50% of Oct 2019 wages)
  Payout in July 2020
4. (75% of May 2020 wages – 75% of Nov 2019 wages)
  25% of Jun 2020 wages
  25% of Jul 2020 wages
  Payout in Oct 2020
How to apply: No application is needed. Information will make reference to CPF contribution.

Program: Foreign Worker Levy (FWL) Waiver and Rebate

Eligibility: Work permit or S pass holder, based on previous levies paid in 2020.
Details: Waiver of FWL in April 2020 plus $750 rebate per eligible worker
How to apply: No application is needed.

South Korea

Program: Paid Family Care Leave – temporary program

Eligibility:
1. If an employee has a family member who has a symptom of COVID-19
2. If an employee has a child who attends a day-care centre or school which has delayed the start of the school term, etc., due to COVID-19 (applicable to childrean under 9 years old or below 3rd grade elementary school)
Details: Up to 50,000 KRW per day, for up to 10 days (Max. 500,000 KRW). Up to 20 days for single-parent families.
Start date: January 20, 2020, until the official end of COVID-19
How to apply: Applications are available until 60 days after the end of COVID-19

Program: Employment Retention Support Subsidy – temporary upgraded on existing program (the requirements have been temporarily relaxed, and the payment level has been raised)

Eligibility: Employers who have implemented employment retention measures, such as temporary suspension of business or leave of absence and paid suspension and leave allowances to employees
Details: Subsidized up to 3/4 of paid suspension and leave allowance (Existing support was 2/3 of paid suspension and leave allowance). The upper limit of 66,000 KRW per person per day (up to 1.98 million KRW per month), decreases depending on the size of the company
Start date: February 1st to July 31st, 2020
How to apply:
- Apply online: https://www.ei.go.kr/ei/eih/cp/cc/ccNtbd/retrieveCcNtbdInfo.do
- Apply offline: Visit a Labour Centre located in the same region and submit an application to the company support team

Program: Paid Leave Subsidy – new temporary program

Eligibility: According to Infectious Disease Control and Prevention Act, employers who provide paid leave to employees who are asked to be quarantined or hospitalized due to COVID-19
Details: Each employee’s daily salary for quarantine period (upper limit of 130,000 KRW per person)
Start date: February 17, 2020, until further notice
How to apply: Apply offline via Fax, Mail, or Visit National Pension Service (https://www.nps.or.kr)

Program: Subsidy for working hour reduction for child care – temporary increased subsidy applied

Eligibility: Employers who have employees
1. Work longer than a month
2. Reduced their work hours to 15 ~35 hours per week, and
3. Have related company policies as well as an electronic attendance record system
Details:
- Support fee for salary reduction: Monthly Max. 240,000~400,000 KRW (existing) -> 400,000 ~600,000 (increased) KRW
- Indirect Labour Cost: Monthly Max. 200,000 (existing) -> 400,000 (increased) KRW
- Support fee for substitute: Monthly Max. 300,000 ~600,000 (existing) -> 300,000~800,000 (increased) KRW
Start date: March 1 to June 30, 2020. Claim within 6 months from the start date of reduction.
How to apply:
- Apply online: https://www.ei.go.kr
- Apply offline: Visit a Labour Centre located in the same region and submit an application to the company support team

Taiwan

Program: Unemployment benefits

Eligibility: If the insured person of employment insurance is affected by severe special infectious pneumonia and does not leave voluntarily, he/she may claim unemployment payment in accordance with the provisions.
Details: According to the average monthly insurance 60% of the new capital, dependents can be added up to 20%.
Start date: Maximum 6 months. For those 45 years old and above or disabled, maximum 9 months.
How to apply: 15 April until 31 May 2020. Application through Labor Office/ Public Employment Service.

Program: Re-Departure Training Program

Eligibility: Labor negotiations to reduce working hours, notified to the local labor administrative authority of the institutions or workers.
Details: Attend training courses under this scheme, training allowance of TWD 158 per hour, max 120 hours per month (max TWD 18,960)
Start date: Mar 10, 2020 until June 30, 2020
How to apply: Apply through the labor office or call 0800-777-888 for registration

Thailand

Program: Reduction of withholding tax rate

Details: From 3% will be reduced to 1.5% on payments of assessable income from April 1 to September 30, 2020, and to 2% from October 1, 2020, to December 31, 2021. However, the 2% rate will apply only to payments made via the e-withholding tax system.
Start date: April 1 to September 30, 2020
How to apply: 15 April until 31 May 2020. Application through Labor Office/ Public Employment Service.

Program: Reduction of contribution rate for employee and employer

Details: Contributions to the SSO by employers and employees will be reduced from 5% to 4% for employers and 1% for employees. The monthly maximum contribution of THB 750 will be reduced to THB 600 for employers and THB 150 for employees.
Start date: Mar until May 2020
How to apply: Apply through the labor office or call 0800-777-888 for registration

Vietnam

Program: Security Package (Resolution 42/NQ-CP)

Details:
1. Employees who take unpaid leave or have their contracts suspended for one month or longer:
  - VND 1.8 million (US$77.21) a month
  - Starting from 1 April, 2020 and shall not exceed three months
2. Employees whose labor contracts are terminated and are not eligible for unemployment insurance, and employees working without a labor contract who lose their jobs:
  - VND 1 million a month
  - From April to June 2020
3. Employers facing financial difficulties that have paid at least 50% of salaries in advance to their employees during their suspension of work for the period from April to June 2020:
  - Collateral-free, zero-interest loans by the Vietnam Bank for Social Policies. The loans will be equivalent to a maximum of 50% of the minimum regional wages applicable to each employee based on the actual time of salary payment, but not exceeding three months. The maximum term of the loans is 12 months.
  - Starting from 1 April 2020 and shall not exceed three months
How to apply:
1. Employees who take unpaid leave or have their contracts suspended for one month or longer:
  - Employers submit an application to the labor union (if any) and the Social Security Office for confirmation. The application includes: 1. Form 1 of Decision 15/2020/QĐ-TTg’s Appendix, detailing a list of employees who take unpaid leave or have their contracts suspended, 2. A copy of the employee agreement letter to take unpaid leave or have their contracts suspended, and 3. A copy of Financial Report 2019 and first quarter of 2020, along with other financial paperwork of the company.
  - Once confirmed, by the Social Security Office employers submit the application to the People’s Committee of the ward where the company’s HQ is at.
2. Employees whose labor contracts are terminated and are not eligible for unemployment insurance, and employees working without a labor contract who lose their jobs:
  - Employees submit an application to the People’s Committee of the commune/ward/district where he/she lives. The application includes: 1. Form 3 of Decision 15/2020/QĐ-TTg’s Appendix, 2. A copy of one of these documents: latest labor contract, resignation letter, announcement or agreement letter detailing the termination of the labor contract, Social Security Book. If employees don’t have Social Security Book, state the reason in Form 3 above.
3. Employers facing financial difficulties that have paid at least 50% of salaries in advance to their employees during their suspension of work for the period from April to June 2020:
  - By the 5th of each month, employers submit Form 11 of Decision 15/2020/QĐ-TTg’s Appendix to the People’s Committee of the district/ward/commune/city where the company’s HQ or branch is at.

GoGlobal Consolidates APAC Countries’ Government Covid-19 Programs for Employer of Records