Long Service Payment and Severance Payment in Hong Kong - Abolishment of Offsetting Arrangement
3Y ago The Government 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”).
While this development is welcome by employees, certain preparation should be made by Hong Kong employers especially for those whose workforce experiences low turnover.
