Amendment of Minimum Level of Relevant Income for MPF Contributions to $6,500, with effect from 1 November 2011

The Legislative Council has passed the amendment of minimum level of relevant income¹ for Mandatory Provident Fund (MPF) contributions. The minimum level of relevant income has been amended to $6,500, effective 1 November 2011, from the original level of $5,000. For the contribution periods (wage periods in general) starting on or after the effective date, employees with a monthly relevant income less than $6,500 are not required to make the employee's part of contribution, but their employers have to make the employer's part of contribution. Self-employed persons with relevant income less than $6,500 monthly or $78,000 yearly do not have to make contributions.

For the contribution periods starting from 1 November 2011, please refer to the following examples:

For the contribution periods starting from 1 November 2011, employers, employees and self-employed persons should make contributions according to the new level:

(1) Regular employees and self-employed persons

i. Monthly paid regular employees and their respective employers Monthly relevant income Mandatory contribution amount Employer's contributions Employee's contributions Less than $6,500 Relevant income x 5% Not required $6,500 - $20,000 Relevant income x 5% Relevant income x 5% More than $20,000 $1,000 $1,000 ii. Self-employed persons making contributions monthly or yearly Relevant income Mandatory contribution amount Monthly Yearly Less than $6,500 Less than $78,000 Not required $6,500 - $20,000 $78,000 - $240,000 Relevant income x 5% More than $20,000 More than $240,000 $1,000 (per month) or $12,000 (per year)

(2) Casual employees in the catering and construction industries enrolled in Industry Schemes and their employers

For casual employees who are members of Industry Schemes, the daily minimum level of relevant income has been amended to $250 from the original level of $160, effective 1 November 2011. Daily paid casual employees Non-daily paid casual employees (e.g. paid on a weekly or bi-weekly basis) Daily relevant income Mandatory contribution amount Average daily relevant income* Mandatory contribution amount Employer's contributions Employee's contributions Employer's contributions Employee's contributions Less than $250 $7.5 Not required Less than $250 Relevant income x 5% Not required $250 or more but less than $260 $13 $13 $250 to $650 Relevant income x 5% Relevant income x 5% $260 or more but less than $390 $15 $15 $390 or more but less than $520 $22.5 $22.5 $520 to $650 $30 $30 More than $650 $30 $30 More than $650 $32.5 per day $32.5 per day * For the calculation of the average daily relevant income, please refer to the "MPF Industry Schemes" leaflet.

Complementary action by employers

Employers need to update their programme/system for calculating salary and contributions, and ensure that the contribution amount is calculated in accordance with the new level for the contribution periods starting from 1 November 2011.

Complementary action by self-employed persons

If your monthly relevant income is from $5,000 to less than $6,500 or your annual relevant income is from $60,000 to less than $78,000, your trustee will automatically update your contribution arrangement. If you have forgotten the relevant income reported to your trustee earlier, you may contact your trustee.

Friendly reminders for employees

If your current monthly relevant income is from $5,000 to less than $6,500, for the contribution periods starting from 1 November 2011, you should pay attention to whether your employer has made the employer's part of contribution and no longer deducts the employee's part of contribution from your salary. However, for contribution periods which start before 1 November 2011, you still need to make the employee's contribution. You can call the MPF Contribution Enquiry Line at 183 3030 to connect to your selected trustee to check if your employer has contributed accurately and punctually for you.

For further details of the amended minimum level of relevant income, please refer to the latest announcement by the MPFA.  For enquiries, please contact the MPFA, your employer or the trustee concerned. This webpage contains announcements and information about the amendment of relevant income level made by the MPFA for public easy reference.  - Newspaper Advertisement - Leaflet - TV Advertisement - Radio Advertisement

¹ "Relevant income" 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 an employee. It does not include any severance or long service payments under the Employment Ordinance.