Skip to Content

Maximum MPF contribution adjusted to $1,250 per month starting from next month

The Mandatory Provident Fund Schemes Authority (MPFA) reminds employers, employees and self-employed persons that with effect from 1 June 2012, the maximum mandatory MPF contribution will be adjusted from $1,000 to $1,250 a month. Employees (and their employers) and self-employed persons whose "relevant income" is more than $20,000 will have to adjust their contributions. The contribution arrangements of employees (and their employers) and self-employed persons whose monthly "relevant income" is $20,000 or below remain unchanged.

The Legislative Council earlier passed the amendment of the maximum level of "relevant income" for MPF contributions from $20,000 to $25,000 monthly. For the contribution periods (wage periods in general) commencing on or after 1 June, the following persons will have to adjust their MPF contributions:

  1. Employees whose "relevant income" is more than $20,000 but not more than $25,000 monthly:
    The contribution made by employer and employee must be adjusted to 5% of the employee's "relevant income".

  2. Employees whose "relevant income" is more than $25,000 monthly:
    The contribution of both the employer and employee must be adjusted from the current monthly amount of $1,000 to $1,250. In other words, the total monthly contribution from the employer and employee will be adjusted from $2,000 to $2,500.

  3. Self-employed persons whose "relevant income" is more than $20,000 but not more than $25,000 monthly, or more than $240,000 but not more than $300,000 yearly:
    The contribution must be adjusted to 5% of the person's "relevant income".

  4. Self-employed persons whose "relevant income" is more than $25,000 monthly, or more than $300,000 yearly:
    The contribution must be adjusted to $1,250 monthly or $15,000 yearly.
Casual employees in the catering and construction industries who are members of Industry Schemes should note that as the maximum level of "relevant income" has been amended from $650 to $830 daily, their maximum daily contributions will be adjusted from $30 (for daily paid casual employees) or $32.5 (for non-daily paid casual employees) to $41.5. They and their employers will have to make contributions according to the amended scales of contributions starting from 1 June this year. For casual employees whose daily "relevant income" is $650 or below, the contribution arrangements of the employees and their employers will not be affected.

The MPFA reminds employees to check whether their employer has made accurate contributions for them for the contribution periods commencing on or after 1 June. Employers are also reminded that they must make contributions according to the new maximum level of "relevant income".

This is the first adjustment of the maximum level of "relevant income" since the introduction of the MPF System. To obtain more information on the amended maximum level of "relevant income", please refer to the leaflet produced by the MPFA or visit the MPFA website. For enquiries, please call the MPFA hotline at 2918 0102.

Under the MPF System, "relevant income" of an employee refers to any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (including housing allowance or other housing benefit), expressed in monetary terms, paid by an employer to the employee. It does not include any severance or long-service payments under the Employment Ordinance. Self-employed persons may use their "assessable profits" in their most recent notice of assessments, the basic allowance or the maximum level of "relevant income" as their "relevant income". They can also make a written declaration to their trustees to declare their "relevant income" (subject to circumstances).


- Ends -


30 May 2012


Back

Last Review Date: 30/05/2012