Hong Kong: Abolition of the Mandatory Provident Fund Offsetting Mechanism

Hong Kong: Abolition of the Mandatory Provident Fund Offsetting Mechanism

On 9 June 2022, Hong Kong’s Legislative Council passed the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill (“the Amendment Bill”) to abolish the MPF offsetting mechanism. This article provides a summary of the main legislative changes and details the government’s proposed measures to tide over businesses during the transition period.