Legal update: MPF offsetting arrangement relating to statutory severance and long service payments to be abolished09Jun2022
The Hong Kong Legislative Council has passed the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022 with its third reading given on 9 June 2022. Pursuant to the Bill, the existing arrangement under which employers may elect to offset any statutory severance/ long service payment by deducting the total accrued value of any MPF employer contributions made to the relevant employee’s MPF scheme for the same period will be abolished. According to the HKSAR government, the offsetting arrangement is expected to be abolished starting from 2025.
Further details can be found in our previous article, “Proposed amendments to abolish MPF offsetting arrangement relating to statutory severance and long service payments“
Russell Bennet and Agnes Lau
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Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.