YETP's Enhancement Measures: Providing Retention Allowance
Providing Retention Allowance
On a pilot basis, the Labour Department is providing a retention allowance from 1 September 2020 to young people who have participated in the Youth Employment and Training Programme (YETP) to encourage them to undergo and complete on-the-job training (OJT), thereby stabilising employment.
The pilot scheme will run for three years during which trainees will be offered a retention allowance of $3,000 if they are engaged in full-time OJT for 3 months. Thereafter, they will receive an additional allowance of $1,000 for completion of each subsequent month until the end of the 6 to 12-month OJT period.
For part-time posts, the respective amounts payable will be halved. Subject to the length of the OJT period, the maximum amount of the retention allowance an eligible trainee may receive under the pilot scheme is $12,000.
Increasing On-the-job Training Allowance
In addition, from 1 September 2020, the maximum amount of the OJT allowance payable to employers for engaging a trainee under the YETP is increased from $4,000 to $5,000 per month for a period of 6 to 12 months with a view to further encouraging employers to hire young people.
For details, please refer to the website of YETP of the Labour Department.