From this date, employer pension contributions cannot be used to meet the costs of mandatory end-of-service payments. This will increase employer costs but the government have set up a 25-year subsidy plan to help.
It will also mean Hong Kong employees will end up with bigger retirement pots (at least in respect of service from 1 May 2025) đź‡đź‡°
Employers may have a lot of admin to do to be ready for the changes. Many could be well prepared already as the proposals were announced back in 2022.
For more information please contact us:
Colin Haines Sarah H. Haines Global Pensions