HONG KONG - Each eligible Hong Kong resident will receive a one-off hand-out of HK$4,000 (about $500) in a scheme of China's Hong Kong Special Administrative Region (SAR) government, an official said on Friday.

The Caring and Sharing Scheme will involve about 2.8 million residents and a total of HK$11 billion, said Paul Chan Mo-po, financial secretary of the Hong Kong SAR government.

Under the new scheme, an eligible person who does not pay salaries tax will receive HK$4,000, and one who receives tax concession will get the difference between HK$4,000 and the amount of tax concession received.

Eligible people include those who hold a Hong Kong identity card, ordinarily reside in Hong Kong and have reached the age of 18 on or before Dec 31 this year.

They must not own any property in Hong Kong nor receive Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance.

Chan said people who pay no tax and live in self-owned domestic properties that benefit less than HK$4,000 in rates concession, or those who pay tax but benefit less than HK$4,000 through tax and rates concession in aggregate, can also apply for the balance.

Social security recipients who are set to receive extra allowance under the 2018-19 Budget can also receive the difference between HK$4,000 and the extra payments received.

Secretary for Labor and Welfare Law Chi-kwong said time is needed to handle the applications. He hoped the payments can be made before next year's budget.