'MPF Change Won't Affect Worker-employer Relations'

"); jQuery("#212 h3").html("

"); });
2022-06-10 HKT 15:28
Commissioner for Labour Chris Sun has dismissed concerns that scrapping the MPF offsetting mechanism will harm worker-employer relationships.
Some lawmakers said they were worried that bosses might dismiss their workers before 2025 when they will no longer be able to make redundancy and long-service payments using their contributions to workers' MPF accounts.
But Sun said in an interview with RTHK on Friday that there would be no reason for employers to do this, as the abolition of the off-setting mechanism will not be retrospective.
"Firing existing workers will only make employers lose out more... The amount of redundancy and long-service payments incurred during their service prior to 2025 can still be offset. Firing existing workers and hiring new ones, whose service period will mostly be after the change, will mean [a large portion of] the payments cannot be offset," he said.
Sun also rejected the idea that some workers may try to get fired on purpose for the payments, saying they would rather stay on longer for a more substantial sum in future.
He said the mechanism should be cancelled in 2025 as expected, while preparations to set up a new MPF system are underway.
"The work of building the eMPF platform is going smoothly, and at the current rate we should be able to implement this [scrapping of the offsetting mechanism] and launch the eMPF platform together in 2025. If things change, we'll also think of a back-up plan."
The official said the government will promote and explain the change to both workers and employers in the next two or three years, adding that it is developing mini apps for calculating payments after the offsetting mechanism is abolished.
The authorities will soon consult people on the proposal of having bosses put an amount equivalent to one percent of their employees' salaries into a designated savings account for making the payments, Sun said.
He said the administration will also submit a 25-year subsidy plan totalling HK$33.2 billion for employers to Legco's finance committee.
Hong Kong Stablecoins Bill Officially Passed, Set To Come Into Effect Later This Year
The Hong Kong government welcomed the Legislative Council’s passing of the Stablecoins Bill today, 21 May 2025. The b... Read more
From Fishermans Son To Fintech Founder: How CapBay Grew RM 6,000 To RM 4 Billion
What started as a RM6,000 loan funded out of their own pockets has grown into over RM4 billion disbursed to more than 2... Read more
Ping An Launches EagleX Global Version For Real-Time Climate Risk Insights
Ping An Insurance (Group) Company of China, Ltd, announced that its subsidiary, Ping An Property & Casualty Insuran... Read more
FWD Resubmits Hong Kong IPO Application Amid Market Recovery
FWD Group, an insurance company backed by billionaire Richard Li Tzar-kai, submitted a new application for an initial p... Read more
Hong Kong Police Crush HK$118M Crypto Laundering Ring, 500 Mule Accounts
In a fresh crackdown on crypto-related crime in Hong Kong, the Hong Kong police arrested 12 individuals for running a c... Read more
Adyen And JCB Launch Card-on-File Tokenisation To Boost Payment Security
Adyen and JCB Co., Ltd. have launched JCB’s card-on-file (COF) tokenisation service, designed to improve the securit... Read more