UBS rolls out quarantine reimbursements to match US rivals

Hong Kong

UBS will compensate its Hong Kong employees for quarantine costs, matching similar plans by US rivals, as global financial institutions step up efforts to retain staff weighed down by the city's strict zero-Covid policy.

Citadel, JPMorgan Chase and Morgan Stanley are among those to have rolled out compensation plans for Hong Kong staff. Goldman Sachs is reimbursing employees across Asia-Pacific, citing the "additional burden of multiple lockdowns and some of the strictest quarantine measures in the world".

As most of the rest of the world is opening up, including rival financial hubs such as Singapore, London and New York, Hong Kong is steadfast in its zero-Covid approach, which includes mandating a hotel quarantine stay of as many as three weeks for returning residents and visitors.

While that has been successful in keeping infections and deaths at bay, a recent survey found almost half of major international banks and asset managers are contemplating moving employees or functions out of the financial centre. A stay at Hong Kong's designated quarantine hotel can cost from HK$500 (S$87.80) to HK$3,630 a night for a non-suite room.

UBS

The Zurich-based lender will pay executive directors or lower ranks HK$2,000 a day to cover costs from a mandatory quarantine stay, according to an internal memo that was confirmed by a Hong Kong-based spokesman. Employees are eligible to claim up to three weeks of accommodation costs, totalling HK$42,000 in a programme that will run to Nov 20, 2022.

Citadel, Citadel Securities

More than 200 Hong Kong employees of the US firm's securities and hedge fund businesses will receive a one-time reimbursement of as much as HK$40,000 to help cover the costs of a hotel quarantine in the city between this month and Sep 30, 2022. Staff can use that either for visits to families and loved ones or simply to spend some time away. They will also be allowed to roll over 10 days of their 2021 holiday into 2022, according to the policy.

JPMorgan

The US bank offered to reimburse Hong Kong employees up to US$5,000 to compensate for their quarantine stay, in a plan that will be in effect until November next year. All Hong Kong-based employees who are executive directors and below may claim the amount for a single quarantine stay for personal trips to visit immediate family members, which includes spouses, domestic partners, children, parents and grandparents. JPMorgan has 4,000 employees in the city.

Morgan Stanley

The New York-based investment bank offered employees as much as HK$40,000 to cover quarantine. The one-time reimbursement will be available to all Hong Kong permanent employees when they return from a personal trip to visit immediate family members and will be in effect until November next year.

Goldman Sachs

Goldman Sachs staff in the Asia-Pacific region will be able to claim a one-time subsidy of up to US$5,000 to cover quarantine costs starting on Dec 1. The subsidy is in recognition that staff in the region have faced "the additional burden of multiple lockdowns and some of the strictest quarantine measures in the world," the US bank said in a memo.

BlackRock

BlackRock is offering to reimburse some employees in Hong Kong and Singapore as much as US$2,000 to help defray quarantine costs. The reimbursement is available to permanent employees who are vice- presidents and below and have been at the firm for at least a year. The programme, which went into effect at the beginning of November, will compensate employees 50 per cent of the cost of hotel quarantine. BLOOMBERG