Here are Hong Kong’s statutory updates for 2025.
Effective May 2025
Removal of MPF Set-Off for Severance/Long Service Payments
From 1 May 2025, employers in Hong Kong will no longer be able to offset mandatory provident fund (MPF) contributions against statutory severance or long service payments for amounts accrued after this date. To assist employers, the government has allocated HK$33 billion to subsidise part of these liabilities over the next 25 years, with decreasing support each year. This change will also heighten the importance of “unreasonable dismissal” protections under the Employment Ordinance, making severance payments more relevant for employees with over two years of service.
Source: Labour Department
Effective May 2026
Annual Review of Statutory Minimum Wage
The statutory minimum wage, last increased to HK$40 per hour in May 2023, will undergo an annual review starting from 1 May 2026. This change aims to ensure regular adjustments to the wage floor in line with economic conditions.
Source: Labour Department
