September 2023 / Hong Kong

The Labour Department (LD) launched the regularised GBA Youth Employment Scheme in March this year to encourage enterprises with businesses in both Hong Kong and the GBA to employ university graduates of Hong Kong to work in the GBA's Mainland cities, so as to foster their career development and the exchange of talent in the GBA. As of August 31, a total of 220 enterprises had provided 2 069 job vacancies under the scheme and 333 young people had been employed.

The LD's spokesman said, "Enterprises with businesses in both Hong Kong and the GBA's Mainland cities are eligible to join the scheme. Participating enterprises shall employ eligible young people in accordance with Hong Kong laws, offer them a monthly salary of not less than HK$18,000 and station them in the GBA's Mainland cities to work and receive on-the-job training. The Government will grant a monthly allowance of HK$10,000 for up to 18 months to enterprises for each employed young person.

The spokesman added, "Young people participating in the scheme should be Hong Kong residents lawfully employable in Hong Kong who are awarded bachelor's degrees or above from 2021 to 2023. Job vacancies under the scheme, upon the LD's vetting, have been uploaded to the scheme's website for Hong Kong young people to apply for. The deadline for graduates to apply for job vacancies under the scheme will fall on December 31.

 The Government Gazette published on September 1 contains a Legal Notice to the effect that the Secretary for Financial Services and the Treasury has authorised a change in the rate of interest payable on Tax Reserve Certificates. From September 4, 2023 the new annual rate of interest will be 0.9250 per cent against the current rate of 0.8833 per cent, i.e. the new rate will be $0.0771 per month per $100.

Tax Reserve Certificates bear simple interest, and interest is calculated monthly (including part of a month) from the date of purchase to the date of payment of tax.

Interest is only credited when certificates are used to pay tax and no interest is due where the principal value of a certificate is repaid to its holder.

The rate of interest payable on Tax Reserve Certificates is periodically revised in line with the market trend. Currently, it is reviewed every month based on the average prevailing interest rate for the 12-month time deposit for $100,000 to $499,999 offered by the three note-issuing banks.

The new rate will apply to all certificates purchased on or after September 4, 2023. Certificates purchased before September 4, 2023, will continue to earn interest at the rates prevailing on their respective purchase dates. Below is a summary of the interest rates for the past periods:

Source: IRD.gov.hk