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MPF System

Contributions

Employee and Employer

Employees and employers who are covered by the MPF System are each required to make regular mandatory contributions calculated at 5% of the employee’s relevant income to an MPF scheme, subject to the minimum and maximum relevant income levels. For a monthly-paid employee, the minimum and maximum relevant income levels are $7,100 and $30,000 respectively.

Monthly Relevant IncomeAmount of Mandatory Contributions Payable by EmployerAmount of Mandatory Contributions Payable by Employee
Less than $7,100Relevant income x 5%No contributions required
$7,100 to $30,000Relevant income x 5%Relevant income x 5%
More than $30,000$1,500$1,500

The current minimum relevant income level of $7,100 per month applies to contribution periods commencing on or after 1 November 2013 while the current maximum relevant income level of $30,000 per month applies to contribution periods commencing on or after 1 June 2014.  For more details on the past and current minimum and maximum relevant income levels and their application to different contribution periods, employees and employers can contact their trustee or click here.

"Relevant income" refers to all monetary payments paid or payable by an employer to an employee, including wages, salary, leave pay, fees, commissions, bonuses, gratuities, perquisites or allowances, but excluding severance payments or long service payments under the Employment Ordinance (Chapter 57, Laws of Hong Kong).

Both employees and employers are free to make voluntary contributions in addition to mandatory contributions.

Self-employed Person

Self-employed persons who are covered by the MPF System must make regular mandatory contributions calculated at 5% of their relevant income to an MPF scheme, subject to the minimum and maximum relevant income levels. They can opt to make mandatory contributions on a monthly or yearly basis on or before the contribution day. The minimum and maximum relevant income levels are $7,100 per month (or $85,200 per year) and $30,000 per month (or $360,000 per year) respectively.
 
Relevant IncomeMandatory Contributions
Less than $7,100 per month (or $85,200 per year)No contributions required
$7,100 to $30,000 per month (or $85,200 to $360,000 per year)Relevant income x 5%
More than $30,000 per month (or $360,000 per year)$1,500 per month (or $18,000 per year)

The current minimum relevant income level of $7,100 per month (or $85,200 per year) applies to contribution periods commencing on or after 1 November 2013 while the current maximum relevant income level of $30,000 per month (or $360,000 per year) applies to contribution periods commencing on or after 1 June 2014.  For more details on the past and current minimum and maximum relevant income levels and their application to different contribution periods, self-employed persons can contact their trustee or click here.

For the meaning of "relevant income" in the case of self-employed persons, please refer to the "Notes for Self-Employed Persons" below.

Self-employed persons are free to make voluntary contributions on top of their mandatory contributions.
  

Notes for Employers


Calculation, deduction and contribution

Employers are required to calculate an employee’s relevant income and the amount of mandatory contributions for each contribution period (generally the payroll period), deduct the amount from the employee’s income as his/her mandatory contributions, and pay the employee’s contributions, together with the employer’s contributions from their own funds. The total mandatory contributions must be paid to the MPF trustee on or before the contribution day.

Contribution day

Employers are required to pay the mandatory contributions for a contribution period on or before the contribution day. Generally, for monthly-paid regular employees, the contribution day is the 10th day of each month. If the contribution day is a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, the contribution day is extended to the next following day which is not a Saturday, a public holiday, a gale warning day or a black rainstorm warning day.

Employers in the construction and catering industries who have enrolled their casual employees in the Industry Schemes may choose to make mandatory contributions either on the next working day (i.e. any day other than a Saturday, a public holiday, a gale warning day or a black rainstorm warning day) following the relevant pay-day, or within 10 days after the relevant contribution period.

Contribution holiday

In the case of regular employees, the employer’s mandatory contributions shall be payable from the first day of employment. However, the employee enjoys an initial contribution holiday and is not required to make employee’s mandatory contributions for the first 30 days of employment and

(i) the first incomplete payroll period that immediately follows the 30-day period (if the employee’s payroll period is monthly or shorter than monthly); or
(ii) the calendar month in which the 30th day of employment falls (if the employee’s payroll period is longer than monthly).

In the case of casual employees, both employer’s mandatory contributions and employee’s mandatory contributions shall be payable from the first day of employment. There is no initial contribution holiday for employees in this case.

Remittance statements and pay-records

When remitting each payment of contributions to an MPF trustee, employers must provide the trustee with a remittance statement showing the amount of each employee’s relevant income, and the amounts of both employer’s and employee’s contributions in respect of each employee.

Employers must also provide each employee with a monthly pay-record showing the required details, including the amount of the employee’s relevant income and the amounts of both employer’s and employee’s contributions, within seven working days after the mandatory contributions are made.

Employers participating in Industry Schemes and paying mandatory contributions in respect of their casual employees on the next working day (i.e. any day other than a Saturday, a public holiday, a gale warning day or a black rainstorm warning day) following the relevant pay-day are not required to comply with the requirements of providing remittance statements and pay-records. Click here for more information on the Industry Schemes.

Termination of employment

When a regular employee who is a member of an MPF scheme ceases employment, the employer should arrange for the last payment of mandatory contributions for and in respect of that employee by the next contribution day, and notify the MPF trustee of the date of termination of employment of the employee via the next remittance statement or a written notice.

When a casual employee who is a member of an Employer Sponsored Scheme or a Master Trust Scheme ceases employment, the employer should arrange for the last payment of mandatory contributions by the next contribution day. The employer should also notify the MPF trustee of the date of termination of employment of the employee via the next remittance statement or a written notice within 30 days after the cessation of employment.

When a casual employee who is a member of an Industry Scheme ceases employment, the employer should arrange for the last payment of the mandatory contributions by the next contribution day but is not required to notify the MPF trustee of the date of termination of the employment of the employee.

Notes for Employees


Notice of participation

After the scheme trustee has confirmed an employee’s membership of an MPF scheme, it will issue a notice of participation to the employee. 

With effect from 1 August 2015, the notice of participation replaces the membership certificate.

Investment choices

Employees have the right to choose among the constituent funds (i.e. investment choices) offered under the MPF scheme selected by their employer for investment of the mandatory contributions paid by both the employees and their employer.
 

Pay-records

Employers must provide employees with a monthly pay-record showing the required details, including the amount of the employee’s relevant income and the amounts of both employer’s and employee’s contributions, within seven working days after the mandatory contributions are made.

Annual benefit statement

The MPF trustee of an MPF scheme must provide every scheme member with an annual benefit statement within three months after each financial period of the scheme. This statement must set out the required details, including the total contributions paid during the year and the value of the accrued benefits at the beginning and end of the year.

Notes for Self-Employed Persons

Self-employed persons can opt to make mandatory contributions on a monthly or a yearly basis on or before the contribution day.  If the contribution day is a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, the contribution day is extended to the next following day which is not a Saturday, a public holiday, a gale warning day or a black rainstorm warning day.  The amount of mandatory contributions is calculated at 5% of their relevant income, subject to the minimum and maximum relevant income levels.

Relevant income of self-employed persons can be ascertained in one of the following ways:
  • They can use the "assessable profits" stated in their most recent notice of assessment issued by the Inland Revenue Department as their relevant income;
  • They can use the basic allowance as defined under section 28 of the Inland Revenue Ordinance (Chapter 112, Laws of Hong Kong) as their relevant income;
  • They can make an income declaration to their MPF trustee; or
  • They can simply contribute the maximum amount of mandatory contributions payable per month or per year.
If the business of a self-employed person suffers a loss, the person can lodge a statement with their MPF trustee showing the amount of the loss and how it was calculated, and discontinue payment of mandatory contributions until his/her relevant income again meets the minimum level of relevant income.

The MPF trustee of an MPF scheme must provide self-employed persons with an annual benefit statement within three months after each financial period of the scheme. This statement must set out the required details, including the total contributions paid during the year and the value of the accrued benefits at the beginning and end of the year.

Last Revision Date: 31/07/2015