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Article | MPFexpress

Magazine: The subsidy for the long service payment obligation is approved

February 28, 2025

In this issue, we recap key features of the Subsidy Scheme for the Abolition of the MPF Offsetting Arrangement (“SSA”) to prepare employers adapt financially to the new arrangement which will come into effect on 1 May 2025.
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The abolition of MPF offsetting will come into effect on 1 May 2025. To help employers adapt financially to the new arrangement, the Government proposed the Subsidy Scheme for the Abolition of the MPF Offsetting Arrangement (“SSA”), the funding of which was approved by LegCo in November 2024.

fullscreenClick to enlarge the LSP formula

A quick recap of the new long service payment (LSP) formula
A quick recap of the new LSP formula

Download our latest issue of MPFexpress to learn more.

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Related LSP content

Accounting treatment of the Subsidy Scheme for the Abolition of the MPF Offsetting Arrangement (“SSA”)

In January 2025, the Hong Kong Institute of Certified Public Accountants (HKICPA) issued a guidance relating to the accounting treatment for the Subsidy Scheme for the Abolition of the MPF Offsetting Arrangement (“SSA”). Read the article below for more details.
Long Service Payment: abolition of MPF offsetting and employers’ accounting provisions

Employers are preparing for the implementation of the MPF offset abolition on 1 May 2025, with a focus on the new calculation of long service payments and the actuarial valuation for LSP liabilities.
4 things you should know about the abolition of the MPF offsetting long service payment arrangement

Since the LSP offset Bill was passed in June 2022, we now have an implementation date of 1 May 2025 and guidelines issued by HKICPA for valuing the LSP liability. Details are given below.

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