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For self employed person in the catering and construction industries.

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Non-compliance and penalties


The following table summarizes the common types of SEP non-compliance and the relevant penalties.

Type of SEP Non-compliance Penalty
Failure to enrol in an MPF scheme Maximum fine of $50,000 and six months’ imprisonment on the first occasion. For each subsequent conviction, the maximum penalty is a $100,000 fine and imprisonment for one year
Failure to pay mandatory contributions to trustee Maximum fine of $50,000 and six months’ imprisonment on the first occasion. For each subsequent conviction, the maximum penalty is a $100,000 fine and imprisonment for one year

The MPFA may also impose a financial penalty on SEPs who fail to comply with the following legislative requirements.

Type of SEP Non-compliance Penalty
Failure to pay mandatory contributions to trustee Financial penalty of $5,000 or 10% of the amount due, whichever is greater
Failure to notify trustee in writing of your cessation of self-employment Financial penalty of $5,000 on the first occasion, $10,000 on the second occasion and $20,000 for subsequent failures
Failure to notify trustee in writing of changes in personal particulars Financial penalty of $5,000 on the first occasion, $10,000 on the second occasion and $20,000 for subsequent failures