Abolition of MPF long service pay offsetting mechanism in Hong Kong

November 2023

The Legislative Council passed the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022 on 9 June 2022 to abolish the use of the accrued benefits of employers' mandatory contributions under the Mandatory Provident Fund (MPF) System to offset severance payment (SP) and long service payment (LSP). The Government has announced that the abolition will take effect on 1 May 2025 (the transition date).

It is essential to act now and plan ahead to prevent any last-minute surprises in your balance sheet or income statement. Check out the 2-page flyer below to see what it means to you, and how we can help you throughout this journey.