Severance Payment / Long Service Payment Calculator

Under Hong Kong employment law, employees dismissed due to redundancy, company closure or other involuntary reasons may be eligible for a Severance Payment. Employees who have been employed continuously for at least five years and are dismissed for reasons other than serious misconduct may be eligible for a Long Service Payment. Both statutory entitlements are calculated in a similar way, based on the last month's wages multiplied by years of service and a specified fraction, subject to statutory caps.

For Hong Kong employees, it is important to know whether you qualify for Severance Payment or Long Service Payment. Under the Employment Ordinance, two-thirds of the employee's monthly wages is used as the calculation base, but the current statutory cap is HK$22,500 per month, so even if your monthly salary is higher, HK$22,500 is the maximum used. The total payout is capped at HK$390,000. In addition, from 1 May 2025 the Government abolished the MPF offsetting arrangement, so service years before and after the change are calculated separately.

HK FinBox's Severance Payment / Long Service Payment calculator lets you enter your final monthly salary, years of service and relevant offset arrangements to quickly estimate your entitlement. The calculator applies the statutory caps and formulas under the current Employment Ordinance and is suitable for initial reference and for discussion with your employer.

First confirm whether your dismissal was involuntary, and keep your employment contract, pay slips and MPF contribution records. If your employer refuses to pay or disputes the calculation, seek help from the Labour Department or legal advice. Because the MPF offset arrangement is complex, the actual amount may differ from the estimate, so treat your employer's final calculation as authoritative.