Direct Subsidy Scheme

The Direct Subsidy Scheme (DSS) is instituted by the Education Bureau of Hong Kong as a means to enhance the quality of private schools in Hong Kong at the primary and secondary levels. The Hong Kong government has been encouraging non-government secondary schools which have attained a sufficiently high educational standard to join the DSS by providing subsidies to enhance the quality of private school education since the 1991–92 school year. In the 2000–01 school year, the DSS is extended to primary schools. In the 2001–02 school year, the terms of the DSS were significantly improved to attract more schools to join the scheme. Under the scheme, schools are free to decide on their curriculum, fees and entrance requirements.

Non-government schools must satisfy stipulated standards to be eligible to join the scheme. The standards include requirements regarding the mode of operation (unisessional), class size, teacher's qualifications and facilities etc. For example, schools need a permanent school premises, more than 70 per cent of teachers had to be degree-holders, and they had to have sufficient facilities such as computer, music and language labs.

DSS schools are free to design their own curriculum. They are not subject to the guidelines issued by the Education Department. Although DSS schools are required to offer principally a curriculum targeting local students and prepare its students to sit for local examinations, certain DSS schools are currently offering or are set to offer the International Baccalaureate Programme.

DSS schools are generally free to select their own students, subject to special arrangements with the government in case of shortage of places in government/aided schools. However, DSS schools are not allowed to select their students by conducting written entrance tests.

DSS schools are free to charge school fees. In the 2009–10 school year, their schools fees range from $3,000 to $110,000 per year.

A DSS school will receive full recurrent subsidy until its fee level reaches 2 1/3 times the average unit cost of an aided school place. Beyond this level, no recurrent subsidy is available. The average unit cost of an aided school place is calculated based on a two-age based system to address the needs of schools with longer development background. In short, a higher level of subsidy would be available to DSS schools that have been operating for 16 years or above. The level of recurrent subsidy received by a DSS school is hence dependent on the number of students enrolled in that particular school.

Also, to help ex-aided DSS schools adapt to new financing methods, ex-aided DSS schools that receive less recurrent subsidy after joining the DSS will continue to receive recurrent subsidy as if they were aided schools for 5 years.

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