Policy Address

Implement Full Portability of the Mandatory Provident Fund

210. The Mandatory Provident Fund Schemes Authority will work out the details for implementing the "Full Portability" proposal, under which employees will be able to, making use of the eMPF Platform launched in June, transfer the accrued benefits derived from their employers' mandatory contributions to a scheme at their choice. This will help encourage the employees to proactively manage their Mandatory Provident Fund (MPF) investments, promote market competition, and create room for fee reductions.

Enhance the Protection of Wages on Insolvency Fund and Protect Employees

211. The Government will take forward various measures to enhance employee protection, including:

  1. abolishing the arrangement of using the accrued benefits of employers' mandatory contributions under the MPF System to offset severance payment and long service payment on 1 May next year. The Government will launch a 25-year subsidy scheme exceeding $33 billion to share out employers' expenses upon the abolition of the offsetting arrangement;

  2. reviewing the coverage of ex-gratia severance payments under the Protection of Wages on Insolvency Fund, and exploring an increase in the ceiling of ex-gratia payments to enhance employee protection;

  3. implementing the new annual review mechanism of the Statutory Minimum Wage; and

  4. amending the continuous contract requirement under the Employment Ordinance by relaxing the threshold from working 18 hours in a week for four consecutive weeks (i.e. 72 hours in total) to an aggregate of 68 hours in four weeks, making it easier for employees to enjoy comprehensive employment rights.