ExamplesEmployers’ SP/LSP expenses under the Subsidy Scheme for Abolition of MPF Offsetting Arrangement
[Example 1]
For cases falling within the $500,000 threshold, if the amount calculated according to the share ratio in Table 1 is higher than the “capped amount”, the employer only needs to pay the “capped amount”.
| Year after the abolition | Employer's share ratio/ “capped amount” in respect of post-transition portion of SP/LSP per employee |
|---|---|
| 1 - 3 | 50% or $3,000（whichever is the lower） |
| 4 | 55% or $25,000（whichever is the lower） |
Assuming in Year 3 after the abolition
[Example 2]
For cases falling within the $500,000 threshold, if the amount calculated according to the share ratio in Table 1 is less than the “capped amount”, the employer pays according to the share ratio.
| Year after the abolition | Employer's share ratio/ “capped amount” in respect of post-transition portion of SP/LSP per employee |
|---|---|
| 1 - 3 | 50% or $3,000（whichever is the lower） |
| 4 | 55% or $25,000（whichever is the lower） |
Assuming in Year 1 after the abolition
[Example 3]
For cases beyond the $500,000 threshold, the employer shall pay the amount calculated according to the share ratio in Table 2.
| Year after the abolition | Employer's share ratio in respect of post-transition portion of SP/LSP per employee |
|---|---|
| 1 - 3 | 50% |
| 4 | 55% |
Assuming in Year 2 after the abolition
