How to choose the right MPF scheme?
Can employers participate in only one scheme?
Except for exempt persons, employers are required to enrol both their full-time and part-time employees aged 18 to 64 who have been employed for a continuous period of 60 days or more in an MPF scheme within the first 60 days of their employment.
The 60-day period, starting from the first day of employment, is counted by calendar days (including holidays) instead of working days.
If the 60th day of employment is a Saturday, a public holiday or a gale/black rainstorm warning day, the enrolment deadline is extended to the next day which is not a Saturday, a public holiday or a gale/black rainstorm warning day.
Mr C is employed as a Marketing Executive. His first day of employment is 19 June. His employer has to enrol him in an MPF scheme on or before 17 August, i.e. the 60th day from his first day of employment.
Employers must not sign a series of employment contracts that are shorter than 60 days each with their employees. If an employment relationship exists for 60 days or more, the employer must still enrol the employee in an MPF scheme and make contributions.
Employers have to provide their employees with an enrolment form of the MPF scheme(s) they are participating in.
The form would require the following information:
- the MPF funds selected
- personal particulars of the employee
- tax residency self-certification ( i.e. declaration on whether the employee is a tax resident outside Hong Kong)
- employee’s signature
Employers should return the completed forms to their trustees for opening an account for their employees.
If an employee fails to provide the tax residency self-certification, the trustee will not be able to open the account.
Employers are advised to provide their employees the enrolment form as soon as possible such that employees have sufficient time to study the funds offered by the MPF scheme and decide which funds they would like to invest in.
If an employee does not indicate any fund choice in the form, the contributions will be invested according to the Default Investment Strategy (DIS).
The notice will include:
- name of the MPF scheme in which the member is enrolled
- name and address of the trustee
- name of the scheme member
- issue date of the notice
If an employer fails to enrol an employee in an MPF scheme on time, the employer is liable to a maximum fine of $350,000 and imprisonment for three years.
If a casual employee does not have an account in the same Industry Scheme as the employer, the employer must enrol the employee in an MPF Scheme the employer is participating in within the first 10 days of employment.