Direct Subsidy Scheme - Financing

Financing

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 two and a third of 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 in order 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 dependant 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.

In order to cater for students from less well-off families, DSS schools are required to set aside at least 10% of their income for fee / scholarship schemes. In addition, for every dollar charged over two third of the average unit cost of an aided school place, the school should set aside 50 cents for scholarship / financial assistance schemes.