MPF System

Mandatory Contributions

Mandatory contributions made for an employee are fully and immediately vested in the employee once they are paid into his/her MPF account. Any investment return derived from the mandatory contributions is also fully and immediately vested in that employee.

MPF trustees provide employers and SEPs with various methods (e.g. by cheque, autopay) to make  contributions and different channels (e.g. by fax, email) to submit remittance statements.


When making contributions, employers and SEPs should be mindful of the following points to avoid their payment being considered late or default.

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Cheque

Posting the cheque to the trustee


  • Allow sufficient mailing time to make sure that the payment cheque and the remittance statement are delivered to the trustee on or before the contribution day.
  • The postmark date on the envelope will not be considered as the date of payment.
  • Ensure that the information on the cheque is accurate and sufficient funds are maintained in the bank account for honouring the cheque. If the cheque is dishonoured, the employer/SEP will be considered as defaulting on contributions.
  • Post-dated cheques or stale cheques are normally not accepted.
  • Affix sufficient postage before posting the cheque.

Depositing the cheque at the bank branches or offices designated by the trustees

  • Please check with the trustee about the designated locations of MPF drop boxes and the cut-off time for collecting contributions through the drop boxes.
  • The day on which the cheque deposited at the bank branch or office/customer service counter will be considered as the date of payment. 
  • If submitting contributions through MPF drop boxes, the day on which the payment cheque and the remittance statement deposited in the MPF drop box at the collection centre(s) designated by the trustee will be considered as the date of payment.
Autopay
  • Autopay must be set up on or before the contribution day.
  • Sufficient funds must be maintained in the bank account for making full contributions, otherwise the trustee will not be able to debit from the account.
  • If a transfer limit is set for autopay transactions, please ensure the relevant amount is sufficient for making full contributions.
  • If a debit is unsuccessful, the employer/SEP will be considered as defaulting on contributions.
  • Ensure that a duly completed remittance statement is delivered to the trustee on or before the contribution day.
  • The day on which the trustee receives the duly and accurately completed remittance statement will be regarded as the date of payment by employers.
  • If an employer fails to submit the remittance statement, or the information on the statement is inaccurate, the trustee will not execute the autopay instruction and the employer will be considered as defaulting on contributions.
  • As SEPs are not required to submit remittance statements, the day on which the trustee issues a direct debit instruction will be considered as the date of payment by SEPs.
Direct credit
  • The day on which the bank account of the MPF scheme is credited will be regarded as the date of payment.

 

  • Ensure that the payment is credited to the bank account of the MPF scheme and the remittance statement is submitted to the trustee on or before the contribution day.

 

  • Please note the cut-off time for payment transactions of electronic banking service provided by individual banks.
     
Deduction of reserve in the employer’s account to settle future contributions (subject to the  governing rules of the scheme)
  • The day on which the trustee receives the duly and accurately completed remittance statement will be regarded as the date of payment.

 

  • Employers should ensure sufficient funds are maintained in the account for making full contributions and make up the difference, if any, on or before the contribution day (If funds are insufficient to make full contributions, the employer will be considered as defaulting on contributions). 
     

MPF tips: Do not make contributions via intermediaries
Employers and SEPs should make the payment of contributions directly to their trustees and avoid paying  contributions through MPF intermediaries. Communications between employers or SEPs and MPF intermediaries will not be accepted as evidence for payment of contributions.