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MPF System

Industry Schemes

In view of the high labour mobility of the construction industry and the catering industry, and the fact that most of the employees in these two industries are "casual employees", whose employment is on a day-to-day basis or for a fixed period of less than 60 days, Industry Schemes have been established under the MPF System for employers and employees in the two industries.

The legislation does not stipulate that employers in these two industries must join the Industry Schemes.  Employers may opt for Master Trust Schemes.  However, Industry Schemes are specifically designed for employers and employees in these industries, offering the following unique advantages:

No Scheme Switching when Changing Jobs

Casual employees under the Industry Schemes do not have to switch schemes when they change jobs within these two industries, so long as their previous and new employers have registered with the same Industry Scheme.  This is convenient for scheme members and saves administrative costs.

Employees Can Open Accounts in Advance

Casual employees can open MPF accounts with the trustees of the Industry Schemes in advance.  Upon changing jobs, if their new employers have also registered with the same Industry Scheme, they can simply provide their employers with the details of their accounts for making contributions, thus saving the trouble of handling the paper work required for enrolling in a new scheme.

Reduced Administrative Work for Employers

If employers make contributions in respect of their casual employees who are enrolled in the Industry Schemes on the next working day (other than a Saturday, a public holiday or a gale or black rainstorm warning day) following the pay-day, they are not required to provide "pay-records" to the casual employees nor to keep records of the contribution details of their casual employees, such as relevant income, contribution amount and contribution date.

Calculation of Contributions

1. Casual Employees

The calculations of contributions for casual employees in the Industry Schemes are different from those for regular employees.  Casual employees in the Industry Schemes are usually daily-rated (i.e. income computed on a daily basis) and the length of their contribution period may be different (e.g. paid every day after completion of work or paid on a weekly basis). 

Regardless of whether daily-paid or not, casual employees and their employers may simply refer to the following contribution scale and make fixed sum contributions according to the employees’ daily relevant income:

Daily Relevant IncomeAmount of Mandatory Contributions Payable by EmployerAmount of Mandatory Contributions Payable by Employee
Less than $280$10Not required
$280 to less than $350$15$15
$350 to less than $450$20$20
$450 to less than $550$25$25
$550 to less than $650$30$30
$650 to less than $750$35$35
$750 to less than $850$40$40
$850 to less than $950$45$45
$950 or more#$50$50
#This income band contains the daily maximum relevant income level (i.e. $1,000) and the upper contribution limit (i.e. $50).  Even if the daily relevant income of a casual employee exceeds $1,000, the daily contribution amount payable by both the employee and his employer remains at $50 each.

For casual employees who are paid on a daily basis (i.e. paid every day upon completion of work), employers may simply check the employees’ daily relevant income against the contribution scale for the contribution amount payable.  If the casual employees are paid on a non-daily basis (e.g. paid weekly or twice a month), employers should add up the contribution amount payable for each day in a contribution period to arrive at the total amount of contributions payable.

For non-daily-rated casual employees (e.g. a weekly-rated or monthly-rated employee whose income is computed based on fixed weekly or monthly salary), employers should first determine the employees’ average daily relevant income for each working day in a contribution period and then check this against the above contribution scale for the contribution amount.  The total amount of contributions payable is the multiple of the daily contribution amount and the number of working days in the contribution period.  For details of the contribution calculation, please refer to the section with additional information on Industry Schemes

2. Regular Employees

For regular employees in the construction industry and catering industry, the method of calculating contributions under Industry Schemes is the same as that under Master Trust Schemes.  Both employers and employees are required to contribute 5% of the employees’ relevant income, totalling 10%.  The employee’s relevant income based on which contributions are ascertained is subject to the minimum and maximum levels of relevant income ($7,100 and $30,000 per month respectively).

Monthly Relevant IncomeAmount of Mandatory Contributions Payable by EmployerAmount of Mandatory Contributions Payable by Employee
Less than $7,100Relevant income x 5%Not required
$7,100 - $30,000Relevant income x 5%Relevant income x 5%
More than $30,000$1,500$1,500

Coverage of the Industry Schemes 

Construction Industry

For the purpose of the Industry Schemes, the construction industry covers the following eight major categories:

  • Foundation and associated works;
  • Civil engineering and associated works;
  • Demolition and structural alteration works;
  • Refurbishment and maintenance works;
  • General building construction works;
  • Fire services, mechanical, electrical and associated works;
  • Gas, plumbing, drainage and associated works; and
  • Interior fitting-out works.
The following are examples of establishments and units engaged in construction works:

Registered with the Buildings Department -
1. General building contractors;
2. Specialist contractors in the ventilation category;

Registered with the Electrical and Mechanical Services Department -
3. Electrical contractors;
4. Lift contractors and escalators contractors;
5. Builders' lift contractors;
6. Gas contractors;

Others -
7. Fire service installation contractors registered with the Fire Services Department;
8. Holders of a plumber's licence issued by the Water Supplies Department;
9. Public works contractors with an approval letter by the Development Bureau; and
10. All sub-contractors to which projects or works are delegated directly or indirectly from any contractors specified in 1 to 9 above.

Catering Industry

For the purpose of the Industry Schemes, the catering industry covers holders of food business licences or permits under the Food Business Regulation (Chapter 132X, Laws of Hong Kong), canteens at schools and workplaces, and catering establishments inside clubs. Here are some examples of catering establishments:
  • Food factories, milk factories, frozen confection factories and bakeries;
  • Restaurants;
  • Factory canteens;
  • Siu mei or lo mei shops;
  • Cold stores;
  • Fresh provision shops;
  • Cooked food stalls operating in public markets;
  • Cooked food stalls which are granted hawker licences; and
  • Chinese herb tea shops.

Last Revision Date: 17/12/2015