• In tandem with the abolition of the offsetting arrangement under the Mandatory Provident Fund (MPF) System on 1 May 2025, 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 1 May 2025 onwards (i.e. the post-transition portion of SP/LSP) by providing employers with subsidies for 25 years. The subsidy ratio will be progressively reduced on a year-on-year basis over the subsidy period with a view to helping employers gradually adapt to the policy change.

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Hello, I'm "EasyCal"！

Would like to know how to calculate the amount of severance payment (SP)/ long service payment (LSP) and the Government subsidy after the abolition of MPF offsetting arrangement? Let me help you!

Notes:

  • This calculating tool operates on the basis of the relevant provisions of the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022, data inputted by users and certain assumptions of circumstances. The computation steps and results generated are for initial reference and demonstration purposes only. Users are required to take into account the employment terms and conditions, as well as the actual employment situation of the employee concerned in order to calculate relevant statutory entitlements of the employee accurately.

  • This calculating tool assumes that the whole employment period of the employee(s) is/are covered by MPF system. If the whole or part of the employment period is/are not covered by MPF system (e.g. the employment period after which the employee reaches age 65), the calculation results provided by this calculating tool may be different from the actual situation.

  • The Labour Department accepts no liability for any losses, damages, costs or expenses howsoever arising from the use of or inability to use this calculating tool or use of or reliance upon any information or material provided by this calculating tool. The information generated by this calculating tool should neither be used in any legal proceedings nor be regarded as evidence in pursuing any claims.

  • Rounding of figures: figures may not add up to the total due to rounding down.

  • The relevant provisions of the laws concerned remain the sole authority for calculation of the statutory entitlements.

Please read the above notes and check the box if you wish to proceed.
Select employer / employee

I want to calculate:

Eligibility
Please select SP or LSP.
Eligibility

Employees' Information:

Please input the commencement date of employment of the employee.
Please input the relevant date in relation to the termination of employment of the employee.
Monthly-rated employee?
$ Larger values can be inputted in the text box directly. According to the Employment Ordinance, in calculation of for non-monthly rated employees, this amount shall not exceed 2/3 of (i.e. ) .
Please input the Employees' wage rate immediately preceding the “transition date”.
$ Larger values can be inputted in the text box directly. According to the Employment Ordinance, in calculation of for non-monthly rated employees, this amount shall not exceed 2/3 of (i.e. ) .
Please input the Employees' wage rate immediately preceding the termination of employment.
  1. Please input a date on or after 1 May 2025 (i.e. the “transition date”).
Employment period preceding to the “transition date” was no less than 12 months Employment period preceding to the “transition date” was less than 12 months but not less than 1 month or 30 normal working days Employment period preceding to the “transition date” was less than 1 month or 30 normal working days
2. Wage rate immediately preceding the “transition date” Monthly-rated employee Please input the last full month’s wages or the average monthly wages over the last 12 months immediately preceding the “transition date”. Please input the last full month’s wages or the average monthly wages over the employment period immediately preceding the “transition date”. Please input the first full month’s wages after commencement of employment.
Non-monthly rated employee Please input 18 days’ wages chosen out of the last 30 normal working days or 18 times the average daily wages over the last 12 months immediately preceding the “transition date”. Please input 18 days’ wages chosen out of the last 30 normal working days or 18 times the average daily wages over the last 12 months immediately preceding the “transition date”. Please input 18 days' wages chosen out of the first 30 normal working days after commencement of employment.
3. Wage rate immediately preceding the termination of employment Monthly-rated employee Please input the last full month’s wages or the average monthly wages over the 12 months immediately preceding the termination of employment.
Non-monthly rated employee Please input the 18 days’ wages chosen out of the last 30 normal working days or 18 times the average daily wages over the last 12 months immediately preceding the termination of employment.
Note:

An employee can only be entitled to either SP or LSP in respect of the same employment period.

To facilitate calculation, EasyCal assumes that all employees are either eligible for SP or LSP. Employers are recommended to assess the eligibility of SP or LSP of individual employee in the light of actual situation.

An employee can only be entitled to either SP or LSP in respect of the same employment period.

To facilitate calculation, EasyCal assumes that all employees are either eligible for SP or LSP. Employers are recommended to assess the eligibility of SP or LSP of individual employee in the light of actual situation.
The amount of pre-transition portion of
+
The amount of post-transition portion of
=
The employees' entitlement
Employee
The amount of pre-transition portion of
+
The amount of post-transitionportion of
=
The employees' SP entitlement
Note:
According to the Employment Ordinance, the maximum payment of is $390,000. Since the Employees' entitlement exceeds $390,000, the amount in excess will be deducted from the post-transition portion.
My employees enrolled in… I am enrolled in…

(For illustrative purposes, assumed that all employees participate in Mandatory Provident Fund Scheme or all employees participate in Occupational Retirement Schemes)

Mandatory Provident Fund (MPF) Scheme
Occupational Retirement Schemes (ORS)
To assist you to adapt to the policy change, the Government will introduce a 25-year subsidy scheme to share out your expenses on the post-transition portion of SP/LSP after the abolition of MPF offsetting arrangement.
The 25-year Subsidy Scheme for Abolition of MPF Offsetting Arrangement has been expired when the employee 1 concerned leaves employment on , the employee 2 concerned leaves employment on , the employee 3 concerned leaves employment on , the employee 4 concerned leaves employment on , the employee 5 concerned leaves employment on .
The Subsidy Scheme for Abolition of MPF Offsetting Arrangement is not applicable as the amount of post-transition portion of payable to the employee concerned is $0.
Learn more about the Subsidy Scheme for Abolition of MPF Offsetting Arrangement

現行「對沖」制度下我可獲得的權益總和

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經「對沖」後保留在強積金戶口內的所有僱主供款累算權益／酬金或非強積金豁免的職業退休計劃利益餘額 經「對沖」後保留在強積金戶口內的所有僱主供款累算權益／酬金或非強積金豁免的職業退休計劃利益餘額 經「對沖」後我可提取的僱主職業退休計劃供款既有利益／酬金餘額
=
我可獲得的權益總和
根據《僱傭條例》，的最高款額是$390,000。
+
經「對沖」後保留在強積金戶口內的所有僱主供款累算權益／酬金或非強積金豁免的職業退休計劃利益餘額 經「對沖」後保留在強積金戶口內的所有僱主供款累算權益／酬金或非強積金豁免的職業退休計劃利益餘額 經「對沖」後我可提取的僱主職業退休計劃供款既有利益／酬金餘額
=
我可獲得的權益總和
When the employees concerned leaves employment, the accumulated amount of post-transition portion of SP/LSP payable to all employees in this year…
Does not exceed $500,000
Exceeds $500,000
Employee
The Employees' entitlement
The amount of benefits used for offsetting
The amount of payable after offsetting
The amount of Government subsidy
The amount of payable after netting off the amount of Government subsidy
Employee
Total