If an exit statement includes MPF offsetting, look beyond the total. The employment dates, reason for termination, and pre- or post-transition portions matter.
Evidence to keep
Before you start
The abolition took effect on 1 May 2025. Employer mandatory MPF benefits cannot offset the post-transition portion of severance or long-service payment. The pre-transition portion and other contributions have separate rules. Both types of payment are not automatically due for the same termination.
What to do, step by step
- Check entitlement to severance or long-service payment, not merely years worked.
- Ask the employer to separate pre- and post-transition portions and the wage basis.
- Compare each proposed offset source with Labour Department transition guidance.
- Take discrepancies to Labour, and separately check any MPF withdrawal or transfer procedures.
Costs, timing, and things to check
The change does not make all MPF benefits withdrawable early. Termination payments and MPF withdrawal conditions are separate.
A single 'offset' figure is insufficient to verify a calculation crossing the transition date.
Establish eligibility, then check each service period and contribution source separately.
Official information and enquiries
These are the reference and service entry points for this guide. Check current fees, eligibility, and schedules with the authority. The preparation date is not each source's official update date.
- Labour Department: abolition of MPF offsetting
- Labour Department: MPF offsetting questions
- Labour Department: severance and long service payment
This is general information; an individual dispute depends on the facts, documents, and current law.