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Being a Caring Employer


You have been enrolling your employees into your MPF scheme and making contributions for them on time every month. But how can you go the extra mile to be a caring employer and act in your employees' interest? Let us show you.

Choosing the right scheme

It is not uncommon for employers to select their MPF trustee based on their use of other services, such as payroll autopay arrangement or an insurance policy, offered by the group company of the MPF trustee. From the employer’s point of view, since arranging MPF enrolment and contribution is just another administrative task, picking a service provider that the employer is familiar with or has business connections with does seem to make sense. However, don’t forget the purpose of MPF is to provide retirement benefits to your employees. From this perspective, selecting the trustees with the products, services and fees that best fit your employees’ needs will surely better benefit your employees. You should therefore fully consult your employees on their needs and preferences with regard to choice of MPF trustees and schemes before making your final decision.

Offering more than one scheme

To provide even more options to your employees, you may register in more than one MPF scheme and offer multiple schemes for your employees to choose from. This will allow your employees to have more choices of schemes that may better suit their personal needs. When shortlisting your trustees, be sure to select a combination that offers a wide variety of constituent funds and services with competitive fees. Participating in two similar MPF schemes defeats the purpose of giving more choices to your employees. If you are considering registering in more than one scheme and are pondering over your choices, why not just ask your employees and see what they have to say? It never hurts to hear other opinions, especially when it is for your employees’ own well-being.

Making voluntary contributions

The best thing you can do to enhance your employees’ retirement protection is making additional contributions for them on top of  your mandatory 5%. These are known as voluntary contributions. Unlike mandatory contributions, arrangement on making voluntary contribution, such as the minimum amount to be made, vesting, transfer and withdrawal conditions, are all defined in the rules of the scheme rather than the MPF legislation. Please consult your trustee regarding the details of making voluntary contributions under your chosen scheme.

Both mandatory and voluntary contributions made by an employer to an MPF scheme are tax deductible under Profits Tax to the extent that they do not exceed 15% of the employee's yearly emolument, an extra incentive for you to take the leap.
 

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