Non-compliance and penalties
The following table summarizes the common types of SEP non-compliance and the relevant penalties.
Type of SEP Non-compliance |
Penalty |
Failure to enrol in an MPF scheme |
Maximum fine of $50,000 and six months’ imprisonment on the first occasion. For each subsequent conviction, the maximum penalty is a $100,000 fine and imprisonment for one year |
Failure to pay mandatory contributions to trustee |
Maximum fine of $50,000 and six months’ imprisonment on the first occasion. For each subsequent conviction, the maximum penalty is a $100,000 fine and imprisonment for one year |
The MPFA may also impose a financial penalty on SEPs who fail to comply with the following legislative requirements.
Type of SEP Non-compliance |
Penalty |
Failure to pay mandatory contributions to trustee |
Financial penalty of $5,000 or 10% of the amount due, whichever is greater |
Failure to notify trustee in writing of your cessation of self-employment |
Financial penalty of $5,000 on the first occasion, $10,000 on the second occasion and $20,000 for subsequent failures |
Failure to notify trustee in writing of changes in personal particulars |
Financial penalty of $5,000 on the first occasion, $10,000 on the second occasion and $20,000 for subsequent failures |