Key points of Subsidy Scheme

Key points of Subsidy Scheme for Abolition of MPF Offsetting Arrangement

25-year

25-year of subsidy scheme

$500,000

A threshold of $500,000 is set with specified employer subsidy ratios for each subsidy year

%%%

The subsidy ratio will be progressively reduced over the
25-year subsidy period

How to apply

In tandem with the abolition of the offsetting arrangement on 1 May 2025 (“transition date”), the Labour Department implements the 25-year Subsidy Scheme to share out affected employers’ expenses on severance payment/long service payment in respect of their employees’ employment period on or after the transition date.

Applicant employers may submit applications through the TransitionEase, or submit completed applications with a copy of relevant supporting documents by email, facsimile, post or submit in person to the Service Centre for Subsidy Scheme for Abolition of MPF Offsetting Arrangement (“Service Centre”); or drop the completed application form to the drop box. Information of the Service Centre will be released in due course.

Popular View

Guidance Notes for Employers Making Subsidy Applications Guidance Notes for Employers Making Subsidy Applications
Guidance Notes for Making Subsidy Applications for Shortfall in Aggregate Benefits Subsidy Ratios under the Subsidy Scheme
Checklist for Employees to Preliminarily Assess Eligibility for Making Shortfall Application Documents to be Submitted by an Employer when Making a Subsidy Application
Frequently Asked Questions Frequently asked questions on Subsidy Scheme for Abolition of MPF Offsetting Arrangement