Calculate employers’ shared amountCases falling within the $500,000 threshold
For cases falling within the $500,000 threshold, please refer to the share ratio/ shared amount payable by an employer in Table 1:
【Table 1】 Cases falling within the $500,000 threshold
| Year after the abolition |
Employer's share ratio/ “capped amount” in respect of |
|---|---|
| 1 – 3 | 50% or $3,000（whichever is the lower） |
| 4 | 55% or $25,000（whichever is the lower） |
| 5 | 60% or $25,000（whichever is the lower） |
| 6 | 65% or $25,000（whichever is the lower） |
| 7 | 70% or $50,000（whichever is the lower） |
| 8 | 75% or $50,000（whichever is the lower） |
| 9 | 80% or $50,000（whichever is the lower） |
| 10 – 11 | 80% |
| 12 – 13 | 85% |
| 14 – 19 | 90% |
| 20 – 25 | 95% |
For the initial nine years after the abolition:
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If the amount calculated according to the share ratio is higher than or equals to the “capped amount”, the employer only needs to pay the “capped amount”. The remaining amount will be subsidised by the Government.
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If the amount calculated according to the share ratio is less than the “capped amount”, the employer shall pay according to the share ratio. The remaining amount will be subsidised by the Government.
For Year 10 to Year 25 after the abolition, no “capped amount” is set. The amount of post-transition portion of SP/LSP payable by an employer is calculated according to the share ratio of the respective year. The remaining amount will be subsidised by the Government.
Cases beyond the $500,000 threshold
For cases beyond the $500,000 threshold, please refer to the share ratio/ shared amount payable by an employer in Table 2:
【Table 2】 Cases beyond the $500,000 threshold
| Year after the abolition |
Employer's share ratio in respect of |
|---|---|
| 1 – 3 | 50% |
| 4 | 55% |
| 5 | 60% |
| 6 | 65% |
| 7 | 70% |
| 8 | 75% |
| 9 | 80% |
| 10 | 85% |
| 11 | 90% |
| 12 | 95% |
| 13 - 25 | 100% |
For the initial 12 years after the abolition, the amount of post-transition portion of SP/LSP payable by an employer is calculated according to the share ratio of the respective year, and no “capped amount” is set. The remaining amount will be subsidised by the Government. For cases beyond the $500,000 threshold, no subsidy will be provided from Year 13 onwards.
Cases straddling the $500,000 threshold
For cases straddling the $500,000 threshold, SP/LSP within the $500,000 threshold will be calculated according to the higher subsidy ratio in Table 1, with “capped amount” calculated on a pro rata basis, whilst the remaining part exceeding the $500,000 threshold will be calculated according to the lower subsidy ratio in Table 2.
For example, assuming an employer has already paid post-transition portion of SP/LSP for 12 employees totaling $470,000 in Year 3 after the abolition, when the employer has to pay $40,000 post-transition portion of SP/LSP to the 13th employee, $30,000 of which will fall within the $500,000 threshold and the remaining $10,000 will go beyond the threshold. The amount payable by the employer under the Subsidy Scheme for Abolition of MPF Offsetting Arrangement is calculated as follow:
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For the $30,000 post-transition portion of SP/LSP falling within the $500,000 threshold:
The employer’s shared amount calculated according to Table 1 is $15,000 ($30,000 × 50%), whilst the “capped amount” calculated on a pro rata basis is $2,250 ($30,000 × $30,000/$40,000). Since the employer’s shared amount exceeds the “capped amount”, the employer is only required to pay the “capped amount” (i.e. $2,250).
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For the $10,000 post-transition portion of SP/LSP beyond the $500,000 threshold:
The employer’s shared amount of employer calculated according to Table 2 is $5,000 ($10,000 × 50%).
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The total amount shared by the employer is $7,250 ($2,250 + $5,000), the remaining post-transition portion of SP/LSP (i.e. $32,750) will be subsidised by the Government.
