Information Centre

People often talk on social media about how MPF contributions work for new employees. Some netizens mistakenly think that most companies are not required to make MPF contributions for employees who have been employed for less than three months or have not passed their probation period. This article provides correct information about MPF contribution arrangements.

New employees typically undergo a probation period of up to six months. However, the length of the probation period does not determine whether an employer should make MPF contributions of an employee. In fact, with the exception of exempt persons, employers must enrol all full- or part-time employees aged between 18 and 64 in an MPF scheme within the first 60 days of employment, and employers must make contributions on time once the employee has been employed for 60 days. This “60-day” period starts on the first day of employment, counted by calendar days, including weekends and public holidays, rather than actual working days.

Employer must make MPF contributions on or before the next contribution day, which is the 10th day of each month, following the calendar month in which the 60th day of employment falls. The contribution amount is calculated starting from the employee’s first day of employment. New employees enjoy a contribution holiday and are not required to make contributions for the first 30 days of employment and the first incomplete wage period thereafter.

For example, if an employee starts working on 16 January and the wage period runs from the first to the last day of each calendar month, the employee is not required to make contributions from 16 January to 14 February (i.e. the first 30 days of employment) and 15 February to 28 February (i.e. the incomplete wage period following the first 30 days of employment). The employee’s MPF contributions will therefore start to be calculated on 1 March.

The employer must enrol the employee in an MPF scheme on or before 16 March (the 60th day of employment) and make the first contribution on or before 10 April (the contribution day of the month immediately following the calendar month in which the 60th day of employment falls).

Employees should check their MPF contribution records regularly to ensure that their employer is making MPF contributions on time and that the amounts are correct. If their employer fails to make contributions, the employees should contact the MPFA immediately.