Protection of Wages on Insolvency Fund : Safety Net for Employees

In the event that an employer closes down its business and is unable to pay severance payment (SP), their employees may apply to the Protection of Wages on Insolvency Fund (PWIF) for ex-gratia payment.

In June 2022, the ceilings of ex-gratia payment items under PWIF were substantially increased including an increase of SP from the first $50,000 plus 50% of any excess entitlement to the first $100,000 plus 50% of any excess entitlement.

For details, please visit “Guide to the Protection of Wages on Insolvency Ordinance and Points to note for making application to the Protection of Wages on Insolvency Fund ” (pdf file).