Employment Benefits Support Division
The Employment Benefits Support 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) and implementing the Reimbursement of Maternity Leave Pay Scheme.
Abolition of MPF offsetting arrangement
At present, there are provisions under the Employment Ordinance (Cap. 57) (EO), 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 arrangement will take effect on 1 May 2025.
Thematic Webpage on the Abolition of MPF Offsetting Arrangement (www.op.labour.gov.hk/en/)
The Reimbursement of Maternity Leave Pay Scheme
The statutory maternity leave for employees under EO has been extended from 10 weeks to 14 weeks with effect from 11 December 2020.
For the maternity leave pay (MLP) of the 11th to 14th weeks’ maternity leave that is required to be paid and has been paid to the employee under EO, employers may submit applications for reimbursement of MLP under the Reimbursement of Maternity Leave Pay (RMLP) Scheme, subject to a cap of $80,000 per employee.
For details of the RMLP Scheme, please visit the Reimbursement Easy Portal (www.rmlps.gov.hk).
Abolition of MPF offsetting arrangement
At present, there are provisions under the Employment Ordinance (Cap. 57) (EO), 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 arrangement 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
The Reimbursement of Maternity Leave Pay Scheme
The statutory maternity leave for employees under EO has been extended from 10 weeks to 14 weeks with effect from 11 December 2020.
For the maternity leave pay (MLP) of the 11th to 14th weeks’ maternity leave that is required to be paid and has been paid to the employee under EO, employers may submit applications for reimbursement of MLP under the Reimbursement of Maternity Leave Pay (RMLP) Scheme, subject to a cap of $80,000 per employee.
For details of the RMLP Scheme, please visit the Reimbursement Easy Portal (www.rmlps.gov.hk).