Legal & Compliance: Employment Law Adjustments
Navigating severance, long service payments, and the abolition of the MPF offsetting mechanism.
The End of MPF Offsetting (2025)
A landmark shift in Hong Kong labor law occurs on May 1, 2025, when employers will no longer be permitted to use their mandatory MPF contributions to offset severance (SP) or long service payments (LSP).
Tool: Severance/LSP Estimator
Calculate statutory severance based on current wage caps (HK$22,500/month maximum reckonable wage).