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Offsetting Policy Division

The Offsetting Policy Division is responsible for formulating policies on abolishing 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) (i.e. MPF offsetting arrangement).

At present, there are provisions under the Employment Ordinance (Cap. 57), Mandatory Provident Fund Schemes Ordinance (Cap. 485) and Occupational Retirement Schemes Ordinance (Cap. 426) (ORSO) permitting employers to offset employees’ SP or LSP against the accrued benefits attributable to their contributions to the MPF or ORSO schemes. The Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022 aims to abolish the above offsetting arrangement, thereby enhancing employees’ retirement protection. The Amendment Bill was passed by the Legislative Council in June 2022. The Government has announced that the abolition of MPF offsetting arrangment will take effect on 1 May 2025.


Thematic Webpage on the Abolition of MPF Offsetting Arrangement (www.op.labour.gov.hk/en/)

  • This one-stop online platform provides information about the abolition of MPF offsetting arrangement and illustrative graphics and examples to enhance employers’, employees’ and the public’s understanding of the abolition of MPF offsetting arrangement and the relevant supporting measures. It also provides a calculating tool to assist employers and employees to calculate SP/LSP, Government subsidy for employers and total benefits for employees after the abolition.
  • Please click here to visit Thematic Website on the Abolition of MPF Offsetting Arrangement.