Employees can apply for the shortfall if the aggregate benefits are less than that before the abolition

After the abolition of the offsetting arrangement, the aggregate benefits (i.e. severance payment / long service payment plus the accrued benefits of employers’ MPF mandatory contributions) for the vast majority of employees will increase.

Under certain special circumstances (e.g. the employee has a substantial pay rise after the “transition date”, the pre-transition employment period is long, or the post-transition employment period is short) the aggregate benefits received by employees who commenced employment before 1 May 2025 may be less than that before the abolition. These employees may apply to the Government for the shortfall. The Government will announce the details in due course.

Employees can make use of the online calculating tool “EasyCal" to calculate the aggregate benefits before and after the abolition.