Rights, Obligations and Benefits

Rights and Benefits of Employees

Once your employer has enrolled you in an MPF scheme, the MPF trustee will issue a membership certificate to you. You have the right to choose among the constituent funds offered under the scheme.

Full and Immediate Vesting

In general, once your employer remits your and your employer's joint mandatory contributions to the scheme trustees, the contributions will be fully and immediately vested in you.

Obligations of Employers

Enrolment

Except for certain exempt persons, you are required to enrol both full-time and part-time employees aged 18 to aged below 65 and employed for 60 days or more in an MPF scheme.

If you are in the construction or catering industries, you should also enrol casual employees in a registered MPF Scheme. Casual employees are those aged 18 to aged below 65 and employed for less than 60 days. In other words, if you are in one of these two industries, you have to enrol your employees in MPF schemes regardless of the length of the employment period. See Industry Schemes for more information.

You may select one or more MPF schemes available in the market and enrol your employees in these schemes. You are required to display the participation certificate issued by the MPFA.

You may retain your MPF exempted ORSO scheme in addition to an MPF scheme. If your MPF-exempted ORSO scheme is open to new employees, you are required to offer an option to new eligible employees to choose between the MPF and ORSO schemes.

MPF Schemes

There are three types of MPF schemes under the MPF System. For more information, click here.

MPF Exempted ORSO Schemes

MPF Exempted ORSO Schemes are ORSO schemes exempted by the MPFA following the implementation of the MPFSO on December 1, 2000. They now run parallel with other MPF schemes.

Calculations, Deductions and Contributions

You are required to calculate an individual employee's relevant income and the amount of contribution for each contribution period, deduct the mandatory contribution from the employee's income, and pay the employer's contribution from your own funds for the employee's benefit.

Industry Schemes

Employers in the construction and catering industries who have joined an Industry Scheme may choose to make contributions on the next working day following the pay-day or within 10 days after each contribution period. Click here for more information on the Industry Schemes.

Remittance Statements and Pay Records

If your payroll cycle is more frequent than monthly, you must still make contributions for your employees within the first 10 days of the following month.

When remitting payments, you must provide the trustee (your MPF service provider) with a remittance statement showing the relevant income and amount of contribution of each employee.

You must also provide each employee with a monthly pay-record showing the employee's relevant income and the amount of contributions (both theirs and yours) within seven working days after the mandatory contributions are made. However, if you are an employer in the construction or catering industry participating in an industry scheme and have chosen to pay contributions on the next working day following the pay-day, you do not need to comply with this requirement. See Industry Schemes for more information.

Termination of Employment

When an employee ceases employment with your company or organization, you can arrange for the last payment of that employee's MPF contribution together with those of other employees at the next contribution day, and notify the trustee of the departure date of the employee concerned in the remittance statement.