Enforcement
Self-employed Persons
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
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Penalty
|
|---|---|
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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.
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