When an employee ceases employment, the employer must arrange to make the last contributions and notify the trustee of the cessation of employment.
The handling of the last contribution
Employers should arrange for the last payment of the departing employee’s contributions to be made on or before the next contribution day (i.e. the 10th day of the following month).
Notice of termination
How to notify the trustee
An employer can notify the trustee of an employee’s cessation of employment in writing or by making use of the remittance statement.
Employers to keep proper record of the following MPF-related information
Type of Record
Employee’s name, address and first day of employment
At least six months after the employee’s cessation of employment
Employee’s relevant income with breakdown* and dates on which payments were made
* Breakdown items include wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite and allowance
At least six months after making said payments
Information contained in the remittance statement, including the amount of each employee’s relevant income, amount of mandatory contributions (of both employer and employee) paid, and amount of voluntary contributions (of both employer and employee) paid, if any
At least seven years after the date of the remittance statement
Employers are not required to keep the above-mentioned records for casual employees participating in Industry Schemes.
Employers should also notify their trustees in writing within 30 days of any changes to the following information about their companies:
• Business address
• Telephone or fax number
Self-employed persons (SEPs)
Notify the trustee in writing
If an SEP ceases to be self-employed, the SEP must make the last contribution on or before the next contribution day and notify the trustee in writing of the exact end date of the self-employment.
Calculating the last contribution
- has been contributing $1,000 on a monthly basis;
- has set the last day of every month as the contribution day; and
- will cease to be self-employed after 15 April.
- inform the trustee in writing of the cessation of self-employment on or before 30 April (i.e. the next contribution day);
- make the last contributions on or before 30 April (i.e. the next contribution day); and
- contribute $500 (i.e. $1,000 ÷ 30 x 15) as the last contribution as the SEP is self-employed for only 15 out of the 30 days in April.
- residential address
- business address
- telephone or fax number