Hong Kong vs UK | Severance and Redundancy Pay 2026
Compare Hong Kong and UK severance and redundancy pay in 2026, including service requirements, calculation rules, MPF offsetting transition rules and employer checks, with official sources.
In Hong Kong, an employee under a continuous contract for at least 24 months may qualify for severance payment when employment ends for a qualifying redundancy reason; an incomplete year is calculated pro rata and the MPF offsetting transition rules apply from 1 May 2025. In the UK, employees normally need at least 2 years of service; the calculation uses age bands and full years of service, capped at 20 years. For redundancies on or after 6 April 2026, the weekly pay cap is £751 and the maximum statutory redundancy payment is £22,530. Hong Kong salary and overall caps, and individual UK cap details, remain pending confirmation.
Hong Kong
Hong Kong Labour Department guidance states that an employee employed under a continuous contract for at least 24 months may qualify for severance payment when dismissed for a qualifying redundancy reason. An incomplete year of service is calculated pro rata. Where employment straddles 1 May 2025, severance is divided into pre-transition and post-transition portions, and employer MPF mandatory-contribution offsetting follows the transition rules.
UK
GOV.UK states that an employee normally needs at least 2 years with their current employer to qualify for statutory redundancy pay. The calculation uses each full year of service and age bands: half a week’s pay below age 22, one week between ages 22 and 40, and one and a half weeks at age 41 or over; service is capped at 20 years. For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum statutory redundancy payment is £22,530.
Important points
The systems should not be compared only by length of service. Hong Kong requires checks on continuous-contract status, the qualifying reason for termination, service period and MPF offsetting transition rules. The UK requires checks on employee status, two-year service, redundancy date, age band and weekly pay cap. Hong Kong salary and overall caps, and individual UK cap details, remain pending confirmation.
Practical reminders
When arranging redundancy or termination, employers should confirm the applicable jurisdiction, contract terms, reason for termination, notice and payment deadlines, and retain the calculation record. Employees should check service length, applicable pay, age band, written notice and any additional company arrangement; disputes should be raised with the relevant official body or professional adviser.
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This article was prepared from public information published by the Hong Kong Labour Department and GOV.UK. Applicable year: 2026. Data checked: 10 October 2026. Last updated: 25 October 2026. It is general information only and is not legal, employment or HR advice; rights, eligibility, amounts and procedures must be confirmed against current official information, location and individual circumstances. Unverified items are labelled “Pending confirmation”. Employment Agency Licence No. 82734.
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Frequently asked questions
What service period is usually required for Hong Kong severance payment?
Hong Kong Labour Department guidance states that an employee employed under a continuous contract for at least 24 months may qualify for severance payment when dismissed for a qualifying redundancy reason. An incomplete year of service is calculated pro rata. Where employment straddles 1 May 2025, severance is divided into pre-transition and post-transition portions, and employer MPF mandatory-contribution offsetting follows the transition rules.
How is UK statutory redundancy pay calculated by age?
GOV.UK states that an employee normally needs at least 2 years with their current employer to qualify for statutory redundancy pay. The calculation uses each full year of service and age bands: half a week’s pay below age 22, one week between ages 22 and 40, and one and a half weeks at age 41 or over; service is capped at 20 years. For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum statutory redundancy payment is £22,530.
Can Hong Kong and UK severance systems be compared directly?
The systems should not be compared only by length of service. Hong Kong requires checks on continuous-contract status, the qualifying reason for termination, service period and MPF offsetting transition rules. The UK requires checks on employee status, two-year service, redundancy date, age band and weekly pay cap. Hong Kong salary and overall caps, and individual UK cap details, remain pending confirmation.