Abolition of MPF offsetting arrangement comes into effect today
The abolition of the use of the accrued benefits derived from employers' mandatory contributions under the Mandatory Provident Fund (MPF) System to offset severance payment (SP) and long service payment (LSP) (the abolition of offsetting arrangement) takes effect today (May 1, 2025 (i.e. the transition date)).
Starting from the transition date, employers can no longer use the accrued benefits of their mandatory MPF contributions to offset employees' SP/LSP in respect of their employment periods after the transition date. The accrued benefits derived from employers' voluntary contributions and contractual gratuities based on employees' length of service can continue to be used to offset SP/LSP. The abolition of the offsetting arrangement has no retrospective effect. Current employees' SP/LSP in respect of their employment periods before the transition date can still be offset after May 1.
The abolition of the offsetting arrangement is also applicable to occupational retirement schemes under the Occupational Retirement Schemes Ordinance (Cap.426), the two school provident funds under the Grant Schools Provident Fund Rules (Cap.279C) and Subsidized Schools Provident Fund Rules (Cap.279D), and overseas occupational retirement schemes joined by employees from outside Hong Kong which are exempted from the MPF System.
To tie in with the abolition of the offsetting arrangement, the Labour Department on the same day launches the 25-year Subsidy Scheme for Abolition of MPF Offsetting Arrangement (SSA) to share out the SP/LSP expenses of employers after the abolition. The SSA is open for application from today. Employers are required to pay SP/LSP to employees in accordance with the provisions of the Employment Ordinance before submitting subsidy applications to the Labour Department. To learn more about the SSA and the application details, please visit the Labour Department's TransitionEase Portal (www.offsettingsubsidy.gov.hk/en), call the Scheme Hotline (29891001), send by email (enquiry@ssasc.hk) or fax (2989 1012), or enquire in person at the SSA Service Centre (address: 18/F, Tower A, Manulife Financial Centre, 223 Wai Yip Street, Kwun Tong, Kowloon).
Abolition of MPF offsetting arrangement comes into effect today Source: HKSAR Government Press Releases
Abolition of MPF offsetting arrangement comes into effect today Source: HKSAR Government Press Releases
Integration of Hospital Dental Service of Department of Health into Hospital Authority
The Department of Health (DH) and the Hospital Authority (HA) today (December 15) announced that the Hospital Dental Service (HDS) currently provided by the DH will be integrated with the Oral and Maxillofacial Surgery (OMS) Service under the HA from February 6, 2026, and the service will be taken up by the HA.
As outlined in "The Chief Executive's 2024 Policy Address", a comprehensive review of the positioning and objectives of the healthcare system is under way, involving reforms of the functions and division of responsibilities among the HA, the DH and the Primary Healthcare Commission (PHC Commission). The DH will focus on its public health functions and executing its regulatory and enforcement roles. To implement this policy direction, the clinical services of the DH are being gradually integrated with either the HA or the PHC Commission.
Following the earlier transfer of the DH's Clinical Genetic Service to the HA, the DH's HDS will be managed by the HA startingFebruary 6next year. In fact, the seven Oral Maxillofacial Surgery and Dental Clinics (OMS&DCs) under the DH's HDS are all located within the following HA public hospitals, primarily providing specialist oral maxillofacial surgery and dental treatment for hospital in-patients, patients with special oral healthcare needs, and dental emergencies:
- Pamela Youde Nethersole Eastern Hospital;
- Queen Elizabeth Hospital;
- Princess Margaret Hospital;
- Prince of Wales Hospital; and
These clinics will continue to operate at the original sites and integrate with the existing OMS service in six public hospitals provided by the HA. This will help further streamline and optimise the overall service delivery.
To ensure continuity in patient care upon the transfer of service, all scheduled/follow-up appointment records for patients at the aforementioned seven OMS&DCs for dates on or afterFebruary 6, 2026, along with the cases and relevant medical records stored at these clinics, including clinical records, X-ray records, clinical photos, and dental casts, will be transferred to the HA. If patients/family members do not agree to have their cases and relevant medical records transferred to the HA, they should contact the DH by phone at3153 4044or by email (hds_enquiry@dh.gov.hk)on or beforeJanuary 16, 2026, to facilitate the necessary arrangements.
Patients who opt out of the arrangements should note that their follow-up appointments scheduled on or afterFebruary 6next year will be cancelled. Should they require future consultations at the HA's dental and OMS services, a new referral letter will be required for appointments, and new case consultation fees will be charged according to the HA's arrangements. Medical records that patients/family members refuse to transfer to the HA will be disposed of and destroyed by the DH in accordance with its record management policy after the service transfer. For enquiries about the arrangements, please contact the DH.
The Department of Health
