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- Employers reminded to allow sufficient time to make MPF contributions around the Chinese New Year holiday
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Employers reminded to allow sufficient time to make MPF contributions around the Chinese New Year holiday
The Mandatory Provident Fund Schemes Authority (MPFA) reminds employers that with the Chinese New Year holiday coming, they should allow sufficient time to make Mandatory Provident Fund (MPF) contributions for their employees to avoid breaching the law for late payments.
According to the Mandatory Provident Fund Schemes Ordinance, employers are required to make contributions on or before the contribution day, that is, the tenth day of each month. Employers who do not make contributions on time will have to pay a financial penalty of $5,000 or 10% of the amount due, whichever is greater. If the employers fail to settle the outstanding contributions, the MPFA will file civil claims to pursue outstanding contributions on behalf of the employees. Should there be sufficient evidence, the MPFA will initiate prosecution against non-compliant employers.
MPFA Chief Operating Officer Alice Law said, “There are a few days of holiday around the Chinese New Year. We therefore call on employers to make their contributions as soon as possible. If employers choose to make contributions by posting cheques and remittance statements to trustees, they should allow sufficient time for delivery so that the trustees can receive the amounts and the remittance statements on or before the contribution day, 10 February. Employers who make contributions by auto-pay or cheques are reminded to make sure that they have sufficient funds in their bank accounts to settle the amount. The day the trustee receives the full contributions is taken as the day when the employer makes the contributions.”
Employers should enquire with their trustees if they have any questions on the contribution arrangement.
The MPFA has produced a 2014 calendar card marking the contribution day of each month as a reminder for employers to make monthly contributions on time. The card is available on the employer page of the MPFA website.
It is an offence under law for employers to fail to make contributions for their employees. A non-compliant employer is liable to a maximum penalty of a fine of $350,000 and imprisonment for three years. An employer who has deducted the mandatory contributions from the wages of an employee but failed to pay them to the trustee is liable to a maximum penalty of a fine of $450,000 and imprisonment for four years.
- Ends -
28 January 2014
According to the Mandatory Provident Fund Schemes Ordinance, employers are required to make contributions on or before the contribution day, that is, the tenth day of each month. Employers who do not make contributions on time will have to pay a financial penalty of $5,000 or 10% of the amount due, whichever is greater. If the employers fail to settle the outstanding contributions, the MPFA will file civil claims to pursue outstanding contributions on behalf of the employees. Should there be sufficient evidence, the MPFA will initiate prosecution against non-compliant employers.
MPFA Chief Operating Officer Alice Law said, “There are a few days of holiday around the Chinese New Year. We therefore call on employers to make their contributions as soon as possible. If employers choose to make contributions by posting cheques and remittance statements to trustees, they should allow sufficient time for delivery so that the trustees can receive the amounts and the remittance statements on or before the contribution day, 10 February. Employers who make contributions by auto-pay or cheques are reminded to make sure that they have sufficient funds in their bank accounts to settle the amount. The day the trustee receives the full contributions is taken as the day when the employer makes the contributions.”
Employers should enquire with their trustees if they have any questions on the contribution arrangement.
The MPFA has produced a 2014 calendar card marking the contribution day of each month as a reminder for employers to make monthly contributions on time. The card is available on the employer page of the MPFA website.
It is an offence under law for employers to fail to make contributions for their employees. A non-compliant employer is liable to a maximum penalty of a fine of $350,000 and imprisonment for three years. An employer who has deducted the mandatory contributions from the wages of an employee but failed to pay them to the trustee is liable to a maximum penalty of a fine of $450,000 and imprisonment for four years.
- Ends -
28 January 2014
