Long service payment calculator Hong Kong
Long service payment (LSP) is for employees with at least 5 years on a continuous contract whose job ends for a reason other than redundancy or serious misconduct.
It's also payable if a fixed-term contract isn't renewed, if you resign because of ill health or at 65 or over, or if you die in service.
How it's calculated
- For each year of service: two thirds of your last full month's wages, or 18 days' wages if you're paid daily, up to two thirds of HK$22,500.
- Service before 1 May 2025 uses your wages just before that date; service after uses your final wages.
- The total is capped at HK$390,000. The excess comes off the part for service from 1 May 2025.
- Employer MPF mandatory benefits can only offset the part before 1 May 2025.
An example
Eight years of service, 3 before May 2025 at $15,000 and 5 after at $18,000, give $30,000 plus $60,000. With $80,000 of employer MPF, $30,000 is offset and the employer pays $60,000.
Frequently asked questions
Who gets long service payment in Hong Kong?
Employees with at least 5 years on a continuous contract who are dismissed (not for redundancy or serious misconduct), whose fixed-term contract isn't renewed, who resign on health grounds or at 65 or over, or who die in service.
Did the MPF offsetting change affect LSP?
Yes. Since 1 May 2025, employer MPF mandatory benefits can't offset the part of the LSP for service from that date. Service before it can still be offset.
When must the employer pay it?
Within 7 days after the employment ends.
Key terms
- LSP
- Long service payment, a lump sum under the Employment Ordinance for long-serving employees.
- Transition date
- 1 May 2025, when the abolition of MPF offsetting took effect.
Up-to-date official data
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