Compliance
Long Service Payment
A payment due to an employee with long continuous service whose employment is terminated under specific circumstances.
Definition
Long service payment is a statutory entitlement for an employee who has been employed under a continuous contract for not less than five years and whose employment is terminated under specific circumstances, such as dismissal not due to serious misconduct, death, or ill-health. The calculation method is similar to severance payment, involving two-thirds of the last full month's wages (or a statutory cap, whichever is less) multiplied by the number of years of service. Like severance payment, the ability to offset long service payments with employer's mandatory MPF contributions will be abolished from May 1, 2025.