Enforcement

Self-employed Persons

Enforcement Measures and Penalties

Enforcement measures

MPFA will issue payment notices to SEPs who fail to make contributions, and take enforcement actions against non-compliant SEPs, including:

  • requesting SEPs to rectify the situation immediately
  • filing a civil claim in court to recover mandatory contributions in arrears
  • imposing financial penalties on non-compliant SEPs
  • prosecuting non-compliant SEPs

 

Penalties

MPFA may initiate prosecution against non-compliant SEPs. The following are the relevant penalties:

 

 

Type of Non-compliance
Penalty
Failure to enrol in an MPF scheme
Maximum fine of $50,000 and imprisonment for six months on the first conviction; and maximum fine of $100,000 and imprisonment for one year on each subsequent conviction.
Failure to pay mandatory contributions to MPF trustee
 
Maximum fine of $50,000 and imprisonment for six months on the first conviction; and maximum fine of $100,000 and imprisonment for one year on each subsequent conviction.
MPFA may impose a financial penalty on SEPs:
Type of Non-compliance
Penalty
Failure to pay mandatory contributions to MPF trustee
Financial penalty of $5,000 or 10% of the amount due, whichever is greater.
Failure to notify MPF trustee in writing of the date of 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 MPF 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.