Self-employed hawkers, as defined by the Public Health and Municipal Services Ordinance, are exempt from joining any MPF scheme.
However, if you have employees, you are required, in your capacity as an employer, enrol your employees in an MPF scheme and make contributions.
If the student has reached age 18 and is employed as a regular employee for a continuous period of not less than 60 days, the relevant organization is required to enrol the student into an MPF scheme within the first 60 days of employment. (If the student is under 18 years old or an exempt person, the relevant organization does not need to enrol the student in an MPF scheme.)
However, the above 60-day employment rule does not apply to students employed as casual employees in the construction or catering industries. Employers of these two industries are required to enrol the students in an MPF Industry Scheme or Master Trust Scheme and make contributions.
Joining a Scheme and Administrative Duties
- types of funds available under each scheme;
- fees and charges payable under the scheme; and
- quality of customer service offered by the trustee of the scheme.
Yes. You have the right to switch to another MPF scheme and transfer your employees' MPF to the new scheme. However, you are encouraged to communicate with your employees on your proposed arrangements well in advance.
To start the transfer process, you should first submit a written application to the trustee of the new scheme. The new trustee will arrange with your existing trustee to complete the transfer.
MPF Arrangements for New Employees and Exiting Employees
- Full name of employee;
- HKID number;
- date of birth;
- contact information (address and telephone number);
- choice of MPF funds, if any;
- tax residency self-certification (i.e. declaration on whether the employee is a tax resident outside Hong Kong); and
- employee’s signature.
If employees fail to provide tax residency self-certification, their trustee will not be able to complete the account opening procedures.
Within 10 days after the last day of the calendar month in which the employee terminated employment, you must notify your MPF scheme trustee through a written notice or the remittance statement, stating the date on which the employment ceased.
If you are an employer in the construction or catering industries and have enrolled your casual employees into an Industry Scheme, the above procedures of notifying the trustee are not required.
Generally, contribution period refers to the wage period. For regular employees who are paid on a monthly basis, the employer must make mandatory contributions for the employee on or before the 10th day of each month (the "contribution day").
Employers in the construction and catering industries who have enrolled their casual employees in Industry Schemes may choose to make mandatory contributions either on the next working day following the relevant pay day, or within 10 days after the end of the relevant contribution period.
Note: The contribution day is not affected by the "pay day", i.e. whether the employer pays the employee at, before or after the end of the month is irrelevant.
Employers should allow sufficient mailing time to ensure that payment cheques and remittance statements are delivered to the trustee on or before the contribution day. Please note that the postmark date on the envelope will not be considered the date of payment.
There are other points-to-note on making contributions. Click here for more information.
- the employee’s relevant income for the contribution period;
- the employer’s mandatory contribution;
- the employee’s mandatory contribution;
- the employer’s voluntary contribution (if any); and
- the employee’s voluntary contribution (if any).
Trustees can help by offering employers the option of using a remittance statement template. The template is sent out before the end of the contribution period, and shows the most recent information (such as relevant income and contributions details) received by the trustee for each relevant employee. Trustees will also clearly inform the employers how to contact the trustee if they fail to receive the template by the expected date, and how to amend the information on the template before returning it to the trustee as a completed remittance statement.
In addition, some trustees provide additional services, such as:
- an enquiry hotline;
- monthly statements;
- online access to transaction details and contribution information; and
- payroll software to manage employee records and to facilitate the preparation and electronic submission of remittance statements.
Yes. Employers are required to provide every employee with monthly pay-records within seven working days after mandatory contributions are made. The pay-records should include:
- the employee’s relevant income;
- the employer and employee's contribution amounts, including both mandatory and voluntary contributions; and
- the date that contributions were paid to the trustee.
Employers who fail to make mandatory contributions for employees on time are liable to a surcharge calculated at 5% of the amount of default contributions. The surcharge is fully vested in the employees’ MPF accounts. Employers should contact the trustee to enquire about the amount of surcharge and settle the default contributions and surcharge together as soon as possible, without waiting for the payment notice issued by MPFA.
In addition, a financial penalty of $5,000 or 10% of the default contributions (whichever is greater) may be imposed on defaulting employers. Prosecution may also be initiated against defaulting employers, with a maximum penalty of four years’ imprisonment and a fine of $450,000.
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