How to use ERMC to offset pre-transition SP/LSP Liabilities
The abolition of MPF offsetting arrangement will take effect on 1 May 2025. Even after the transition, the post-transition Employer Mandatory Contribution (ERMC) can still be utilized to offset liabilities from pre-transition SP/LSP.
Using Employer Voluntary Contribution to offset expenses
Employers can use the Employer Voluntary Contribution to offset expenses related to MPF both before and after the MPF offset abolition.
SP/LSP monthly wages limits
After May 1, 2025, the maximum limit is the same as before, the monthly wage used to calculate SP/LSP is $22,500, and the largest possible amount of SP/LSP is $390,000.
Want to know more? Watch the video and download the Abolition of MPF Offsetting Mechanism Report!