Date
16 October 2018
The government wants Hong Kong employees to obtain the full benefits of the MPF scheme by abolishing the so-called offsetting mechanism. Photo: Reuters
The government wants Hong Kong employees to obtain the full benefits of the MPF scheme by abolishing the so-called offsetting mechanism. Photo: Reuters

HK Policy Address: Abolishing MPF offsetting mechanism

Chief Executive Carrie Lam Cheng Yuet-ngor has announced an increase in the government’s subsidy offer for employers to end an arrangement that allows them to offset long-service and severance payments from contributions to the Mandatory Provident Fund (MPF).

In her second policy address on Wednesday, Lam said the government is now offering HK$29.3 billion in subsidies for employers over 25 years, up from the previous offer of HK$17.2 billion for 12 years.

The government aims to secure an enabling legislation during the term of the current Legislative Council, or by 2022, so that the offsetting arrangement could be abolished two years after the passage of the amendment, Lam said.

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