Information Centre

Many companies in Hong Kong may need to send their employees abroad for business reasons. We would like to remind those employers that if any employees need to work outside Hong Kong for an extended period, they should not forget about the MPF rights of these employees! 

According to the Mandatory Provident Fund Schemes Ordinance (the Ordinance) and relevant guidelines, an employee employed in or from Hong Kong who is working outside Hong Kong may be covered by the MPF System if there is a “sufficient connection” between the employee and Hong Kong. What constitutes a “sufficient connection”? Here are some examples for your easy understanding. 

Broadly speaking, a Hong Kong resident employed from Hong Kong to work outside Hong Kong for a limited period (e.g. 3 years) by a company engaging in business in Hong Kong should be sufficiently connected to Hong Kong and therefore the employer has to make contributions for this employee according to the provisions of the Ordinance. Whether the employee’s salary is paid in Hong Kong or whether the employer is incorporated in Hong Kong is irrelevant. For example, an engineer employed from Hong Kong by the Hong Kong representative office of a company incorporated in the Mainland to supervise a project in Beijing should be covered by the MPF System.

Or a person who is employed in Hong Kong but working outside Hong Kong on a temporary basis is also covered by the MPF System. Examples of such persons include aircraft crews and pilots, cross-boundary lorry drivers and professionals on assignments outside Hong Kong, etc. 
Furthermore, if an employee who is employed in Hong Kong but residing in
Shenzhen and commuting to Hong Kong daily should be also covered by the MPF
System.

What circumstances are excluded?

You may wonder in what situations employees working outside Hong Kong are considered to have insufficient connection to Hong Kong.

Situation 1: Persons employed outside Hong Kong by an establishment outside Hong Kong of a Hong Kong holding company or by a company incorporated in Hong Kong (a Hong Kong company). Whether the persons are Hong Kong residents is irrelevant. For example, the local workers employed in Shenzhen by a local subsidiary of a Hong
Kong company are not covered by the MPF System. Similarly, a Hong Kong resident employed in Shenzhen by the Shenzhen branch of a Hong Kong company is not covered by the MPF System, even if the person has to perform some of his/her work in Hong Kong.

Situation 2: Hong Kong residents who are working for foreign companies outside Hong Kong. For example, a Hong Kong resident employed by a Japanese company and working in Tokyo is not covered by the MPF System. 

The above examples are some common arrangements. If employers or employees have any questions, please seek professional legal advice.