Communication - Press
Abolition of MPF Offsetting Arrangement in Hong Kong has come into force
The abolition of the MPF offsetting arrangement has been in effect since 1 May 2025, following its enactment on 9 June 2022 through the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022.
From now on, the accrued benefits derived from employer’s MPF mandatory contributions (ERMC) can no longer offset employee’s severance payment (SP) or long service payments (LSP) for service after this date, though they can still offset payments for service before it. However, the accrued benefits derived from employer’s MPF voluntary contributions and gratuities based on years of service remain eligible for offsetting SP and LSP.
