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Contributions
For both employees and employers, it is mandatory to make regular contributions into an MPF scheme. If you are an employee, subject to the maximum and minimum levels of income (currently $20,000 and $5,000 per month respectively), your employer will deduct 5% of your relevant income on your behalf as mandatory contributions to a registered MPF scheme. However, you are not required to make contributions for the first 30 days of your new employment and the following incomplete contribution period. Your employer will also be required to contribute an amount equivalent to 5% of your relevant income to the MPF scheme, subject only to the maximum level of income (currently $20,000 per month). This amount will immediately be vested in you as your accrued benefits in the scheme.
If you are self-employed, subject to the maximum and minimum levels of income (currently $20,000 and $5,000 per month respectively or $240,000 and $60,000 per year respectively), you have to contribute 5% of your relevant income. Self-employed persons can opt to make contributions on a monthly or yearly basis.
"Relevant income" refers to all payments in monetary terms given to employees, including wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (including housing allowance or other housing benefit), but excluding severance payments and long service payments.
Both you and your employer can opt to make extra, voluntary contributions in addition to your mandatory contributions.
Regardless of which trustee you belong to, you can check whether your employer has made contributions for you on time by simply dialing the MPF "Contribution Enquiry Line" 183 3030. According to your instruction, the system will connect you to the selected trustee. Click here for more information on the operation of the system (Chinese only).
Notes for Employers
Calculation, deduction and contribution
You must calculate an individual employee's relevant income and the amount of contribution for each contribution period. You should then deduct the mandatory contribution from the employee's income, and pay the employer's contribution from your own funds for the employee's benefit. Please note that employers are required to remit the contribution for the previous month on or before the contribution day (i,e. the 10th day of a month).
Contribution holiday
Employers' contributions shall count from the first day of employment while the employee is not required to make contributions for the first 30 days of employment and the first incomplete payroll cycle immediately following the 30-day contribution holiday (not applicable to casual employees).
Industry Schemes
Employers in the construction and catering industries who have enrolled their employees with the two approved trustees under the Industry Schemes may choose to make contributions either on the next working day following the pay-day, or within 10 days after each payroll period. The two approved trustees are Bank of East Asia (Trustees) Limited and Bank Consortium Trust Company Limited.
Remittance Statements and Pay Records
If your payroll cycle is more frequent than monthly, you can still make contributions for your employees within the first 10 days of the following month.
When remitting payments, you must provide the trustee (your MPF provider) with a remittance statement showing the relevant income and amount of contribution of each employee.
You must also provide each employee with a monthly pay-record showing the employee's relevant income and the amount of contributions (both theirs and yours) within seven working days after the mandatory contributions are made. However, if you are an employer in the construction or catering industry participating in an Industry Scheme and have chosen to pay contributions on the next working day following the pay-day, you do not need to comply with this requirement. Click here for more information on the Industry Schemes.
Termination of Employment
When an employee ceases employment with your company or organization, you can arrange for the last payment of that employee's MPF contribution together with those of other employees at the next contribution day, and notify the trustee of the departure date of the employee concerned in the remittance statement.
Notes for Self-Employed Persons
The mandatory contribution is calculated at 5% of your relevant income, subject to a maximum income level of $20,000 a month (or $240,000 a year) and a minimum income level of $5,000 a month (or $60,000 a year). You can opt to make contributions on a monthly or a yearly basis.
You can calculate your relevant income in one of the following ways:
- You can use the "assessable profits" stated in your most recent notice of assessment issued by the Inland Revenue Department;
- You can use the basic personal allowance as defined under section 28 of the Inland Revenue Ordinance;
- You can contribute the maximum amount of $1,000 per month or $12,000 per year; or
- You can make an income declaration to your trustee.
If your business suffers a loss, you, as a self-employed person, can lodge a statement with your trustee (MPF provider) showing the amount of the loss and how it was calculated, and request to discontinue payment of mandatory contributions until your relevant income again exceeds the minimum level of income ($5,000 per month or $60,000 a year).
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