- Report your employees' termination details on time
Whenever an employee ceases employment, employers should report the termination details to us and pay the last contributions on time. For non-casual employees, the deadline for reporting termination details and paying last contributions is on or before the 10th day of the calendar month following the employee's last day of employment. For example, if an employee's last employment date is 20 January, the reporting of termination details and payment of that employee's last contributions for the period of 1 to 20 January should be completed on or before 10 February.
- Settle last contributions in full and on time
The final contributions for an employee who ceased employment is 5% of the employee's relevant income paid within that payroll cycle. A 'Last Contribution Calculator' is available on the HSBC MPF website to help employers calculate departing employees' last contributions.
Reporting methods for terminated employees
- Paper-based remittance statements
Termination details of existing employees should be reported in 'Termination Details' under Section A 'Existing Employees Section' of the pre-printed remittance statement. The 'Termination Details' including (1) last employment date, (2) termination code, (3) indication of long-service payment/severance payment (if applicable).
If the records of the employees concerned are not yet shown in the pre-printed remittance statement, you can notify us about the employee's termination of employment through completion of the relevant information under Section B 'New Employees Section'.
- Electronic remittance statement through Business Internet Banking (BIB) MPF Service
You can also report employee termination through the BIB MPF Service. Under the page of 'Prepare Remittance Statement - Add/ Amend Termination', you can provide the termination details including the last employment date, termination reason and long-service payment or severance payment paid to employee.
If the records of the employees concerned are not yet shown in the electronic remittance statement, you can also notify us about the employee's termination of employment through the 'Prepare Remittance Statement - Add/ Amend Termination' page.
To find out more about how the BIB MPF Service can help you, visit our website for a service demonstration.
Long-service payment and severance payment
MPF legislation allows employers to offset long-service payment or severance payment paid to your employees with the relevant accrued MPF benefits derived from employer contributions.
- Offset sequence of long-service payments and severance payments
The member's vested accrued benefits derived from the employer's contributions will be offset according to the following sequence:
1. Employer voluntary contributions (if applicable)
2. Employer's ORSO transfers (if applicable)
3. Employer special contributions (if applicable)
4. Employer mandatory contributions
- Ways to apply for the refund of long-service payment and severance payment
You must provide the following supporting documents to request for a refund of accrued benefits attributable to employer's contributions, for the purpose of offsetting long-service payment and severance payment that you have already paid to an employee:
1. A completed termination notice signed by an authorised person of the company
2. A completed 'Payment Proof for Long Service Payment/Severance Payment (INLS)' signed by an authorised person of the company and the departed employee
Signatures of the authorised persons of the company and the departed employee on the above documents must match our records.
Employers should also note that, for long-service payment and severance payment offsets, it's essential to submit the 'Payment Proof for Long Service Payment/Severance Payment (INLS)' form promptly. If your departed employee's accrued benefits have been transferred to another MPF scheme or are paid out at the employee's request before we receive the INLS form from you, we will not be able to arrange any refunds. Even if such benefits are transferred to another MPF account of the employee under the HSBC MPF scheme, a consent from your departed employee may be required for us to process the refund.