The Business Registration Ordinance (Amendment of Schedule 2) Order 2022 (Order) was gazetted today (June 10) and will be introduced into the Legislative Council on June 15.
The Order seeks to reduce the rate of the business registration levy, which finances the Protection of Wages on Insolvency Fund (the Fund), from $250 per annum to $150 per annum with effect from June 17.
Having considered the stable financial position of the Fund and other relevant factors, the Protection of Wages on Insolvency Fund Board (Fund Board) made the proposal to reduce the levy rate to $150 per annum. The proposal was endorsed by the Labour Advisory Board and has gone through consultation with the Legislative Council Panel on Manpower with its support.
The new rate is applicable to (1) the incorporation submissions in relation to simultaneous business registration applications made on or after June 17 and (2) all other cases, if the commencement date of business or branch registration certificates is on or after June 17.
The Fund provides to employees whose employers become insolvent an ex gratia payment covering arrears of wages, wages in lieu of notice, severance payment, pay for untaken annual leave and pay for untaken statutory holidays. It is financed by a levy per annum on each business registration or branch registration under the Business Registration Ordinance. The Fund Board has the statutory functions of administering the Fund and making recommendations to the Chief Executive with respect to the rate of levy.