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The MPFA welcomes the announcement of 1 May 2025 as the effective date of the abolition of the arrangement for employers using the accrued benefits of MPF mandatory contributions made for employees to offset severance payments / long service payments under the Employment Ordinance (“offsetting arrangement”) by the Chief Executive Mr John Lee at a Labour Day reception today (28 April).    

MPFA Chairman Mrs Ayesha Macpherson Lau said, “After the Legislative Council’s passage of the bill in relation to the abolition of the offsetting arrangement in June last year, we are very pleased to learn that the Government has fixed its effective date. This not only confirms the implementation of the abolition of the offsetting arrangement, which concerns the retirement benefits of the entire working population in Hong Kong, but also creates a win-win situation for both employees and employers. This is a significant step forward in refining and solidifying the MPF System, as well as strengthening the retirement reserves of the working population.”         

The MPFA will make its best efforts to support the Government in implementing the measure.

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28 April 2023