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Long Service Pay & Severance Calculator (2026 Rules)

Long service pay and severance: (last monthly wage × 2/3) × years, HK$22,500 wage cap, HK$390,000 max, 5-year rule, eligibility matrix and the 2025 MPF offsetting change.

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Figures as a dated snapshot — verify current rates at fdh.labour.gov.hk. Not legal advice; not affiliated with any agency or government department.

How to use this tool

  1. 1

    Enter the last monthly wage and the completed years of service.

  2. 2

    Pick why the employment ended — the eligibility matrix decides LSP, severance or neither.

  3. 3

    Read the payment with the HK$22,500 wage cap and HK$390,000 payout cap applied.

  4. 4

    Print the computation sheet; check the MPF offsetting transition note before finalizing any offset.

FAQ

How is long service pay calculated?

Two-thirds of the last monthly wage, multiplied by the years of reckonable service — with the monthly wage counted capped at HK$22,500 and the total payment capped at HK$390,000. A helper earning HK$5,100 with 6 completed years gets (5,100 × 2/3) × 6 = HK$20,400.

When is a helper entitled to long service pay or severance?

Long service pay requires 5 completed years and dismissal, non-renewal, death or certified ill-health grounds. Severance requires 2 completed years and redundancy. Ordinary resignation pays neither. The tool's eligibility matrix shows every reason.

What did the MPF offsetting abolition change?

From 1 May 2025, employer Mandatory Contributions made on or after that date can no longer be used to offset long service pay or severance pay; contributions made before that date remain offsettable during the transition. The tool's explainer block states the rule.

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