Hong Kong Severance & Long Service Payment Calculator
Estimate your statutory severance payment or long service payment, including the pre- and post-transition split introduced when the MPF offsetting arrangement was abolished on 1 May 2025.
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How the Employment Ordinance formula and the 1 May 2025 MPF offsetting abolition shape your payment.
Who can get severance payment in Hong Kong?
You need at least 24 months of service under a continuous contract. You must be dismissed because of redundancy, laid off, or your fixed-term contract must end without renewal because of redundancy. Redundancy means the business closes, moves, or needs fewer people for your kind of work.
Who can get long service payment?
You need at least 5 years of service under a continuous contract. It applies if you are dismissed (but not for serious misconduct and not for redundancy), your fixed-term contract ends without renewal, you resign because of ill health, you resign at age 65 or above, or you die in service. You cannot get both severance payment and long service payment for the same job.
How is the payment worked out?
For monthly-paid staff it is two-thirds of your last full month's wages, multiplied by your years of service. The monthly wage used is capped at HK$22,500, so the most you can earn per year of service is HK$15,000. Part of a year counts pro rata. The total payment cannot go above HK$390,000.
What changed on 1 May 2025?
The MPF offsetting arrangement was abolished from 1 May 2025 (the "transition date"). If your job started before that date and ended on or after it, your payment splits into two parts. The part before 1 May 2025 uses your wages just before that date. The part from 1 May 2025 uses your last wages before you left.
Can my employer still use MPF money to reduce the payment?
Only partly. Your employer can still use the MPF benefits from their mandatory contributions to offset the pre-transition part. They cannot touch the post-transition part with mandatory contributions. Benefits from voluntary employer contributions and length-of-service gratuities can still offset both parts.
Is there a cap on the total payment?
Yes. The maximum severance payment or long service payment is HK$390,000. If your pre- and post-transition parts add up to more than this, the extra amount is taken off the post-transition part.
Disclaimer: This is a planning estimate for monthly-paid employees. It does not cover daily-rated or piece-rated staff, the 12-month average wage election, reckonable-service limits for some pre-1990 employment, or offsetting against gratuities and voluntary MPF benefits.
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Disclaimer: This calculator provides estimates based on current Inland Revenue Department (IRD) rates and thresholds for Year of Assessment 2026/27. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms