MPF Offsetting Eats HK$13.7 Billion in Employer Contributions Over 10 Years

Why has MPF become an employers’ severance reserve?

Ten years into MPF, HK$13.7 billion of employer contributions has been offset against severance and long-service payments, with a union survey finding 48% of catering workers had contributions offset — HK$45,000 per person on average, up to HK$190,000. The law lets employers use the employer portion of MPF accounts to offset severance, a practice unions say turns MPF into a severance fund and are urging the government to scrap.

How can employees protect themselves?

Offsetting only touches the employer portion; employee contributions are safe. Workers should regularly review their MPF account balances and understand their accrued employer contributions before any job change.