31/4- 8/5 Hong Kong HR News You Need to Know: MPF Offsetting Ends, Career Support Crisis, and More– Weekly HR Newsletter 每週人力資源新聞速覽

🎧 Prefer to listen? Tune in to this week’s MixCare Weekly podcast for a quick audio rundown of the top HR news and insights. 🎧 

Why This Week’s News Matters

Hong Kong’s HR landscape is facing fast-moving changes — from new wage policies and retirement reforms to shifts in employee expectations and workplace tech. These developments aren’t just headlines — they directly affect how HR leaders plan, support, and retain talent.

This week, we’re unpacking five essential stories that matter for HR teams across all industries. Whether you’re updating payroll systems or strategizing how to support employee mental health, these insights will help you stay compliant, competitive, and people-focused.

Let’s dive into what’s happening and what you should do next.

MPF Offsetting Ends: Are You Ready for the Transition?

Hong Kong’s Mandatory Provident Fund (MPF) offsetting arrangement — which allowed employers to use severance or long-service payments to offset their MPF contributions — has officially been abolished. In its place, the government has rolled out a subsidy scheme aimed at helping businesses, especially SMEs, manage the increased financial burden.

The change is designed to protect workers’ retirement savings, many of whom were previously left with reduced pensions after job termination. Under the new system, employers can no longer deduct long-service or severance payments from their contributions, meaning higher direct costs for businesses.

3 Main Takeaways

• Employers must now fund both MPF contributions and severance/long-service payments in full.

• A government subsidy scheme is available, but will phase out over time.

• The goal is to significantly improve employee retirement security in Hong Kong.

Implications for HR

HR departments need to:

• Recalculate total compensation costs for workforce planning.

• Update payroll systems and contracts to reflect the new rules.

• Educate staff about how the change enhances their MPF benefits.

Is your benefits plan ready for MPF and wage reform?

MixCare helps HR teams stay ahead of regulatory changes with built-in compliance tools, flexible benefit structures, and automated contribution tracking — so you can manage wage increases and MPF changes without the headache.
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Minimum Wage Rises to HK$41.80: Update Your Payroll Now

Hong Kong’s statutory minimum wage has increased from HK$39.80 to HK$41.80 per hour, following recommendations from the Minimum Wage Commission. This modest rise aims to help low-income earners keep pace with inflation and ensure fair compensation.

The new rate affects a wide range of sectors, especially those with large frontline workforces such as retail, hospitality, and logistics. Employers will need to update wage structures and ensure full compliance to avoid legal risks.

3 Main Takeaways

• The new minimum wage rate is now HK$41.80 per hour.

• It primarily impacts industries with hourly-paid, low-income workers.

• Compliance will be closely monitored by labour authorities.

Implications for HR

HR professionals should:

• Audit all current pay structures and identify affected roles.

• Adjust payroll systems and notify impacted staff.

• Consider broader compensation strategy to maintain morale and retention.

Half of Employees Would Quit Over Poor Career Support

A recent Hong Kong-based survey revealed a startling insight: 50% of employees are open to quitting their jobs due to weak career development opportunities. Many respondents cited a lack of promotion paths, training, and mentorship as key reasons for disengagement.

In a competitive talent market, career growth is no longer a perk — it’s a necessity. Companies that fail to invest in their people risk higher turnover and reduced employer appeal.

3 Main Takeaways

• Career development is now a top reason for employee turnover in Hong Kong.

• Lack of upskilling, mentorship, and advancement is fueling dissatisfaction.

• HR must reframe career support as a strategic retention tool.

Implications for HR

To improve retention and engagement, HR teams should:

• Map out transparent career paths and communicate them clearly.

• Launch upskilling and training programs aligned to business needs.

• Empower managers to mentor and guide employees’ growth journeys.

Struggling with retention? Start with better employee support.

From mental health benefits to personalized wellness wallets, MixCare makes it easy to offer support that today’s workforce actually uses. Empower your team with a benefits strategy that speaks to their real needs — and keeps them loyal.
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Salesforce Unveils Agentforce for HR: AI-Powered Employee Support

Salesforce has released Agentforce for HR, a new AI-powered platform designed to streamline HR service delivery. It centralizes employee support, automates common requests like leave approvals and onboarding, and delivers personalized responses.

The platform also offers data-driven dashboards for HR teams to monitor service volume, satisfaction, and efficiency. With pressure mounting for HR to do more with less, tools like Agentforce may become increasingly attractive.

3 Main Takeaways

• Agentforce automates routine HR tasks, improving speed and consistency.

• It centralizes HR support into one accessible system for employees.

• Built-in analytics empower HR to optimize service delivery.

Implications for HR

HR departments in Hong Kong should:

• Explore how digital tools can reduce admin burden and enhance service.

• Upskill HR teams in digital transformation and AI adoption.

• Benchmark employee support expectations against tech-enabled standards.

Supporting Employees with Anxiety: HR’s Expanding Role

Main Body of News Content

With anxiety and workplace stress on the rise, HR is being urged to lead the charge in creating mentally healthy workplaces. According to a recent article, employees want tangible support: flexible work options, mental health benefits, and empathetic leadership.

Simply offering EAPs isn’t enough — organizations must equip managers to recognize distress and take action, while embedding psychological safety into workplace culture.

3 Main Takeaways

• Mental health is a core part of employee wellbeing — not a side issue.

• Employees value proactive, ongoing support, not just crisis response.

• Managers play a key role in early intervention and everyday empathy.

Implications for HR

To support anxious or overwhelmed employees, HR should:

• Train people managers to spot and respond to mental health issues.

• Communicate clearly about available resources (e.g. EAPs, benefits).

• Foster a workplace culture that normalizes asking for help.

Final Thoughts: What to Do Next

This week’s updates highlight one core message: HR in Hong Kong is evolving fast. Whether you’re managing compliance, modernizing employee support, or rethinking career paths, your role as an HR leader is more critical than ever.

Stay informed. Stay proactive. And if you’re looking to future-proof your benefits offering, MixCare is here to help.

👉 Book a free demo to see how we support flexible benefits, mental health, and more.
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