Major workforce reforms ahead for Hong Kong in 2025

Major reforms in Hong Kong: eMPF launch, employment law amendments, and minimum wage increase.

Hong Kong is undergoing significant changes in its employment and retirement systems in 2025. These reforms aim to modernise administrative processes, enhance worker protections, and improve financial security for employees.

Launch of the eMPF platform

The Mandatory Provident Fund Schemes Authority (MPFA) initiated a major overhaul of the city’s pension system with the launch of the eMPF platform in June 2024. This centralised platform is designed to streamline MPF administration for employers, employees, and trustees. All 24 MPF schemes are scheduled to onboard the platform progressively, with full integration expected by the end of 2025.

This eMPF platform is anticipated to reduce administrative fees by over 50% over the next decade, leading to estimated savings of HKD $30 billion to HKD $40 billion. It also introduces “full portability” of accrued benefits, allowing employees to transfer their MPF contributions between schemes more easily.

Amendments to employment laws

In a move to enhance employee protections, the Hong Kong government has proposed significant amendments to the Employment Ordinance.

One of the key changes is the replacement of the ‘418 rule” with a “468 rule”, which would require an employee to work 68 hours over a four-week period to qualify for certain employment benefits. This amendment aims to provide better access to employment benefits for part-time and casual workers.

Additionally, the government has announced that the abolition of the MPF offsetting arrangement will take effect on 1 May 2025. This means that starting from this date, employers in Hong Kong will no longer enjoy the statutory right to use the accrued benefits derived from their mandatory contributions to their employees’ MPF scheme to offset statutory severance payments or long service payments payable to them. To relieve the financial pressure of employers in making these payments following the abolition of the MPF offsetting arrangement, the government has set up a subsidy scheme to share employer’s costs.

Increase in Statutory Minimum Wage

Effective 1 May 2025, the Statutory Minimum Wage (SMW) in Hong Kong has been increased from HKD $40 to HKD $42.10 per hour, representing a 5.25% rise. This adjustments aims to improve the living standards of low-income workers. Correspondingly, the monthly monetary cap on the requirement for employers to record employees’ working hours has been raised from HKD $16,300 to

HKD $17,200.

Source: News.Gov.HK 

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