In tandem with the abolition of the offsetting arrangement under the Mandatory Provident Fund (MPF) System on 1 May 2025 (i.e. transition date), the Labour Department launches the Subsidy Scheme for Abolition of MPF Offsetting Arrangement (SSA).

 

SSA shares out employers’ expenses on severance payment (SP) / long service payment (LSP) in respect of their employees’ employment period on or after the transition date onwards (i.e. the post-transition portion of SP/LSP) by providing employers with subsidies for 25 years with a view to helping employers gradually adapt to the policy change.

 

Employers may make application for subsidy under SSA for the post-transition portion of SP/LSP payable to an employee if:

• the employer concerned has paid SP/LSP to the employee in full;
• the employee is eligible for SP/LSP as stipulated in the Employment Ordinance;
• the employer is obliged to enrol the employee under an MPF scheme in accordance with the Mandatory Provident Fund Schemes Ordinance, or an occupational retirement scheme exempted under the Ordinance during the whole or part of the post-transition employment period, and make contributions;
• the relevant date of termination of employment of the employee falls between 1 May 2025 and 30 April 2050 (both dates inclusive); and
• the post-transition portion of SP/LSP paid to the employee has not been/will not be fully covered/subsidised by other government funding.

 

Please visit the TransitionEase Portal or refer to the attached leaflet for more details.

 

Website QR code – The TransitionEase Portal

 

Leaflet – Subsidy Scheme for Abolition of MPF Offsetting Arrangement

 

In addition, the Labour Department will hold a webinar to introduce the key features of the abolition of MPF offsetting arrangement and the SSA, as well as its application procedures.  Details of the Webinar are as follows:

 

Date: 28 August 2026 (Friday)

Time: 3:30 p.m. to around 5:00 p.m.

Language: Cantonese

Format: Online via Zoom

Fee: Free of charge

 

Registration will be on a first-come, first-served basis with limited quotas. The enrolment deadline is 18 August 2026 (Tuesday). The enrolment form can be downloaded via the hyperlink below. Your members are most welcome to attend.

 

https://www.offsettingsubsidy.gov.hk/en/pdf/enrolment_form_aug26_e.pdf

 

We would like to solicit your support in disseminating the attached information and the key messages outlined above to your members.  Your assistance in this matter is greatly appreciated.

 

Best regards,

 

Employment Benefits Support Division

Labour Department

Email address: ebsd@labour.gov.hk

28 July 2026