Hong Kong Long Service Payment and MPF Offsetting
What five years or more are worth when the job ends any other way.
FIVE YEARS - S.31R - PAID WITHIN SEVEN DAYS
Wages and dates stay on your device
How is Hong Kong long service payment calculated?
For a monthly-rated employee, statutory long service payment defaults to the last full month’s wages × 2/3 × reckonable years of service (continuous contract of at least five years). The employee may instead elect the average of the last 12 months’ wages. An incomplete year is counted on a 365-day basis, the same basis as the Labour Department calculator.
Wages are capped at $22,500 per month ($15,000 per year of service). The total payment is capped at $390,000 for a relevant date on or after 1 October 2003.
If employment started before 1 May 2025 and ends on or after that date, the Labour Department splits the payment: the pre-transition portion uses wages immediately before 1 May 2025; the post-transition portion uses wages at termination (not the last month of employment for the whole span).
From 1 May 2025, employer mandatory MPF (ERMC) can offset only the pre-transition portion; any statutory total above $390,000 is taken from the post-transition portion. Voluntary MPF and the government subsidy are not modelled here.
Example (1 May 2015 – 30 Apr 2020, $18,000 monthly, exactly five years): $60,000.00 — Amount below is computed live by this calculator — confirm with the Labour Department MPF offsetting abolition calculator.
- 5years to qualify
- 7 daysto pay
- 65resign and keep it
- $350,000fine for not paying
What you can count on
- 31Ropens the door
- Dismissal that is not redundancy
- Death, ill health, or resigning at 65
- 7 daysto pay after the job ends
- And seven days after a family applies
- The deadline is on the employer, not the employee
- 0data sent
- Wages and dates stay in this tab
- Nothing is stored
Long Service Payment Calculator at a glance
- Inputs
- Pay basis, dates, wage
- Output
- Amount and the years behind it
- Qualifying period
- Five years
- What opens it
- Five ways the job can end
- Ill health
- Certificate, second opinion in 14 days
- Payment window
- Seven days
- Not paying
- A $350,000 fine and three years
- Wage cap
- $22,500 a month
- Ceiling
- $390,000
- Incomplete year
- Complete years plus days over 365
- Where it runs
- On your device, no account
How to use Long Service Payment Calculator
- 1
Say how the wage is paid
Monthly-rated uses the last full month. Daily or piece-rated uses any 18 days out of the last 30 normal working days.
- 2
Enter the two dates
The first day of employment, and the relevant date: when notice expired, the fixed term ended, or the employee died.
- 3
Check the five years first
Below five years the panel says so rather than printing a figure, because there is nothing to claim under section 31R.
Frequently asked questions
How is an incomplete year counted?
An incomplete year is counted on a 365-day basis, the same basis as the Labour Department calculator. Check the amount with the Labour Department.
Which endings qualify?
Section 31R: dismissal that is neither redundancy nor summary dismissal for serious misconduct, a fixed term expiring unrenewed, death in service, resignation certified on the ground of ill health, or resignation at 65 or above.
What proof does ill health need?
A certificate in the Commissioner’s specified form from a registered medical practitioner or registered Chinese medicine practitioner, saying the employee is permanently unfit for the present job. The employer may pay for a second opinion within 14 days, giving 48 hours’ written notice.
The employee died. Who claims?
The spouse first, then children, then parents, then the personal representative, applying on the specified form within 30 days of the death. A spouse is paid within seven days of the application; other applicants seven days after the application period closes.
When must the employer pay?
Within seven days of the contract ending. Wilfully failing without reasonable excuse carries a fine of $350,000 and three years’ imprisonment, and $50,000 where the unpaid claim is a deceased employee’s family.
Can employer MPF still offset long service payment?
Employer mandatory MPF, including contributions after 1 May 2025, offsets only long service payment before that date, on the wage just before it. Voluntary contributions and gratuities can still offset both portions. This tool applies neither those nor the subsidy. Labour Department offsetting FAQ.
The five doors into a long service payment
Long service payment is what is left when a long job ends and redundancy is not the reason: retirement at 65, ill health, a contract running out, or the employee dying in service.
- A dismissal that is not redundancy and not summary dismissal for serious misconduct.
- A fixed term that expires on its own date and is not renewed.
- Death in service, claimed by the family in the order the ordinance sets out.
- Certified ill health, or resignation once the employee is 65 or above — the only two the employee starts.
Full specification
| Inputs | How the employee is paid, the first and last day of employment, and the wage figure. |
|---|---|
| Output | The long service payment, the reckonable years as a fraction, and what each year of service is worth. |
| Qualifying period | Section 31R: five years under a continuous contract. Below that the tool says so instead of answering. |
| What opens it | Dismissal other than for redundancy or serious misconduct, a fixed term expiring, death, ill health, or resigning at 65. |
| Ill health | A registered doctor or Chinese medicine practitioner certifies permanent unfitness; the employer may arrange a second opinion within 14 days. |
| Payment window | Within seven days of the contract ending, or seven days after a deceased employee’s family applies. |
| Not paying | An employer who wilfully and without reasonable excuse fails to pay faces a $350,000 fine and three years. |
| Wage cap | Section 31V(1): monthly wages count up to $22,500, so one year of service is worth at most $15,000. |
| Ceiling | Seventh Schedule: $390,000 where the relevant date falls on or after 1 October 2003. |
| Incomplete year | An incomplete year is counted on a 365-day basis, the same basis as the Labour Department calculator. Check the amount with them. |
| Where it runs | In your browser tab. Nothing is sent anywhere, and there is no account. |
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