FAQs For Employees

1.	I am employed in Hong Kong by a local employer, but they have sent me to work in the Mainland. Am I covered by the MPF System during my stay on the Mainland?
	Answer:	Generally, if your employer’s company is registered in Hong Kong, and you and your employer have an employment contract governed by the Hong Kong Employment Ordinance, your employer is required to enrol you in an MPF scheme regardless of where you work.
2.	I am a part-time employee of a trading company working for less than 18 hours a week.  Am I covered by the MPF System?
	Answer:	If you are employed under an employment contract for not less than 60 days, you are covered by the MPF System regardless of the number of hours you work in a week.  Your employer is required to enrol you in an MPF scheme.
3.	I am a director of a company.  Do I need to join an MPF scheme?
	Answer:	If your appointment as a company director is under a contract of employment and you receive remuneration as an employee, then the company needs to enrol you in an MPF scheme.  However, if you are a non-executive director who is not involved in the daily operation of the company, you are not required to enrol in an MPF scheme.
4.	If I have more than one employment concurrently, does each of my employers have to enrol me in an MPF scheme?
	Answer:	Yes.  Each of your employers has to do so as long as you are employed under an employment contract for 60 days or more.
5.	If I work part time and my working hours are not fixed, am I classified as a "casual employee" under the MPF System?
	Answer:	Under the MPF System, a “casual employee” refers to a relevant employee who is employed in the catering industry or the construction industry by an employer on a day-to-day basis or for a fixed period of less than 60 days.  If your employment conditions meet these criteria, you will be classified as a “casual employee” for MPF purposes.
6.	When should an employer enrol his casual employee under the MPF System in an MPF scheme?
	Answer:	An employer must enrol his casual employee in an MPF scheme (e.g. a master trust scheme, an industry scheme) within 10 days from the commencement of employment of the employee. Where an employer chooses to enrol a daily-paid casual employee in an industry scheme and pay contributions on the next working day (other than Saturday) immediately after the payment of income to the employee, the employer will have to enrol the daily-paid casual employee in the industry scheme upon the commencement of employment of the employee so that contributions can then be made to the scheme on time. Some employers may participate in the two industry schemes but others may participate in one scheme only. If you usually work as a casual employee, you are encouraged to enrol yourself in advance in the two industry schemes each of which is administered by an approved trustee.  The two approved trustees will provide you with a membership card after enrolment.  This arrangement, a one-time process, facilitates your future employers also in the catering industry or the construction industry (as the case may be) to make MPF contributions to the appropriate MPF account for you, depending on which industry scheme the employer participates in.
7.	I am a waiter employed on casual basis and have already joined an industry scheme.  When I change jobs within the catering industry, do I need to switch to another scheme?
	Answer:	If both your new employer and your former employer participate in the same industry scheme, you need not switch. You may use the existing account for contribution purposes. If your new employer participates in another industry scheme and you have not enrolled in that scheme before, you have to enrol in that scheme as a new member.
8.	Can I choose an MPF scheme and request my employer to enrol me in that scheme?
	Answer:	Your employer has an obligation to select an MPF scheme for you.  You can present your views to your employer but the final decision on which MPF scheme to join rests with your employer.
9.	How do I know whether my employer has enrolled me in an MPF scheme?
	Answer:	After your employer has enrolled you in an MPF scheme, the scheme trustee is required to provide you with an acceptance notice within 30 days and a membership certificate within 60 days. In addition, the MPFA will issue a participation certificate to your employer to show that he is participating in an MPF scheme and he is required to display it at the premises where you are employed.
10.	Is the trustee of my MPF scheme allowed to unilaterally terminate my participation?
	Answer:	Under the MPF legislation, the membership of a scheme member may be terminated only in accordance with the governing rules of the scheme and with the written agreement of the scheme member or the participating employer given not earlier than 60 days before the termination of the membership.  Your scheme trustee, therefore, is not able to terminate your participation in the scheme unilaterally.
11.	What information or documents will I receive from the scheme trustee after I become a scheme member?
	Answer:	You will receive the following information from the trustee: an acceptance notice; a membership certificate stating the name of the scheme, the name and address of the approved trustee of the scheme, your name and the issue date of the certificate; a document containing a general description of the scheme including the fees and charges payable under the scheme, particulars of the constituent funds of the scheme, name and contact details of the person to whom enquiries about contributions and related matters may be made; an Annual Benefit Statement containing information about the income and expenditure of your account (including contributions, transfers and transactions), account balance and accruals, the extent to which the contributions are vested as well as the gains and losses associated with your account over the relevant financial period; and Fund Fact Sheets, which must be issued at least twice per each financial year, summarizing key information including particulars and performance of the related funds.
12.	I understand that for convenience sake, there is a scale of contributions prescribed by the MPFA for casual employees under the MPF System.  I am paid sometimes once a day or once a week, what is the applicable scale for calculating my MPF contributions?
	Answer:	The contribution scales (a) and (b) below apply to casual employees joining industry schemes only.  (a) For casual employees who are paid on a daily basis:       Current contribution calculation method (Applicable before 1 June 2012)   Mandatory contribution amount   Daily relevant income Employer's contributions Employee's contributions Total contributions Less than $250 $7.5 Not required $7.5 $250 or more but less than $260 $13 $13 $26 $260 or more but less than $390 $15 $15 $30 $390 or more but less than $520 $22.5 $22.5 $45 $520 to $650 $30 $30 $60 More than $650 $30 $30 $60       New contribution calculation method (Effective from 1 June 2012)   Mandatory contribution amount   Daily relevant income Employer's contributions Employee's contributions Total contributions Less than $250 $7.5 Not required $7.5 $250 or more but less than $260 $13 $13 $26 $260 or more but less than $390 $15 $15 $30 $390 or more but less than $520 $22.5 $22.5 $45 $520 to $650 $30 $30 $60 More than $650 to $830 $37.5 $37.5 $75 More than $830 $41.5 $41.5 $83 (b)  For casual employees who are paid less frequently than once a day (e.g. on a weekly or bi-weekly basis), both the employee and the employer are each required to contribute 5% of the employee's relevant income for the contribution period subject to a maximum of $32.5^ per day.       Contribution calculation method:       Current contribution calculation method (Applicable before 1 June 2012)   Mandatory contribution amount  Average daily relevant income Employer's contributions Employee's contributions Less than $250 Relevant income x 5% Not required $250 - $650 Relevant income x 5% Relevant income x 5% More than $650 $32.5 per day $32.5 per day       New contribution calculation method (Effective from 1 June 2012)   Mandatory contribution amount  Average daily relevant income Employer's contributions Employee's contributions Less than $250 Relevant income x 5% Not required $250 - $830 Relevant income x 5% Relevant income x 5% More than $830 $41.5 per day $41.5 per day ^Starting from 1 June 2012, for casual employees who are members of Industry Schemes, the maximum level of relevant income will be amended from $650 to $830 daily and the maximum contributions will be adjusted to $41.5 daily.
13.	Are Directors'  fees considered as relevant income?
	Answer:	The answer depends on whether the director is an employee of the company.  Normally, a director who is involved in the day-to-day operation or management of the company, i.e. an executive director, is considered an employee of the company.  Whether there is a written employment contract between the director and the company, and whether the director is receiving a salary from the company, are irrelevant.  If an employment relationship is implied by his involvement in the running of the company, the director’s fee would be part of his relevant income. On the other hand, a director who is not involved in the day-to-day operation or management of the company is an office holder of the company only and not an employee.  The director’s fee received by such a director is his remuneration for holding the office of a director and is not therefore relevant income.
14.	Can I pay contributions in excess of the mandatory contribution?
	Answer:	Yes. Such contributions made by you are called voluntary contributions and are mainly subject to the governing rules of your scheme.
15.	What will the scheme trustee do when it receives mandatory contributions from my employer?
	Answer:	The contributions will be invested in accordance with the investment portfolio selected by you.  Your accrued benefits (i.e. accumulated contributions plus investment return) will be kept by the custodian and the trustee, until you are entitled to withdraw the accrued benefits or transfer the benefits to another MPF scheme.
16.	Who decides on the choice of investment funds in an MPF scheme?
	Answer:	If more than one constituent fund (i.e. investment fund) is offered by an MPF scheme, you may choose one or more of the funds in which to invest your contributions. Your scheme trustee is required to provide particulars of the funds, such as their investment policy regarding the types of securities and other assets in which the individual constituent fund may invest and the investment managers involved, within 60 days after you have become a member of the scheme. You can make your own choice according to your investment objectives, personal circumstances and future plans.  For example, a scheme member approaching retirement age may consider choosing fund(s) of lower risks, while a younger member may consider choosing fund(s) of higher risks, but which may result in better investment returns.
17.	If the MPF scheme in which my employer has enrolled me has more than one constituent fund, do I have the right to choose which constituent funds to invest in?
	Answer:	Yes. Employees may select the constituent fund or funds under the scheme in which they wish to invest their MPF contributions and accrued benefits (i.e. accumulated contributions plus investment return).
18.	Can I change my mind later, after I have selected my initial investment portfolio?
	Answer:	You have the right to modify your investment portfolio.  The number of fund switches you can make per year is subject to the governing rules of your scheme.
19.	How do I know if the investment managers of my MPF scheme have properly invested my contributions?
	Answer:	Investment managers must be properly licensed by and registered with the Securities and Futures Commission. Trustees of MPF schemes are required to closely monitor their appointed investment managers. In addition, scheme trustees have to file regular returns to the MPFA and the MPFA conducts site inspections to ensure that trustees and investment managers comply with the requirements of the MPF Schemes Ordinance.  It is advisable that you, as a scheme member, check through your Annual Benefit Statements to ensure that contributions are invested in the funds you have chosen.
20.	What is the charging mechanism of MPF Conservative Fund?
	Answer:	Administrative expenses can be charged by trustees, if the returns of an MPF Conservative Fund are higher than the Prescribed Saving Rate (PSR) published by the MPFA.  If the returns of an MPF Conservative Fund in a particular month are lower than or equal to the MPFA's PSR for that month, no administrative expenses can be charged by trustees.  However, if the returns of the MPF Conservative Fund exceed the MPFA’s PSR in any one of the following 12 months, trustees can collect the uncharged administrative expenses to the extent of the excess return.  Fees and charges can be deducted from the assets of the fund or members’ account by way of unit deduction.  If the fund uses the asset deduction mechanism, the unit price/net asset value/fund performance quoted in the fund documentation reflect the impact of fees and charges.  On the other hand, if the fund uses the unit deduction mechanism, the unit price/net asset value/fund performance quoted (except for the fund performance figures quoted in a fund fact sheet) do not reflect the impact of fees and charges.
21.	What measures are there in the MPF System to safeguard my accrued benefits?
	Answer:	All MPF schemes are governed by the laws of Hong Kong.  To ensure scheme members’ interests are adequately protected, a three-pronged approach is adopted: Stringent approval and registration criteria To be qualified for registration, MPF schemes must meet certain prescribed standards.  In addition, only companies and individuals having satisfied the stringent criteria on capital adequacy, financial soundness, fitness and properness, etc. will be approved as MPF trustees to manage MPF schemes. On-going monitoring Scheme assets are kept under the custody of qualified custodians.  Scheme trustees have to submit returns, financial statements and internal control reports regularly to the MPFA.  The MPFA conducts on-site inspections, special audits and investigations, and can impose sanctions on trustees who have breached the relevant requirements. Safety net To provide additional security and protection to scheme members, there is a "safety net" mechanism built into the MPF System.  Scheme trustees have to take out adequate insurance to indemnify scheme members against losses resulting from any breach of trust or illegal conduct by MPF trustees and persons concerned with the administration of scheme assets.  As a last resort, scheme members suffering from losses caused by misfeasance or illegal conduct may lodge a claim for compensation from the MPF Schemes Compensation Fund.
22.	How do I know how much benefits I have accrued in my scheme?
	Answer:	Your scheme trustee is required to provide you with an Annual Benefit Statement within three months from the end of each scheme's financial year.  The Statement shows the income and expenditure of your account (including contributions, transfers and transactions), account balance and accruals, the extent to which the contributions are vested as well as the gains and losses associated with your account over the relevant financial period.  Most trustees also provide additional communication channels (e.g. Internet and telephone hotline) for members to check their accounts.
23.	Can my employer withhold my accrued benefits derived from the employer's portion of the mandatory contributions if I am dismissed due to misconduct, fraud or dishonesty?
	Answer:	No.  Your employer’s mandatory contributions are vested fully as your accrued benefits in the scheme, once they are paid to your scheme trustee.  Your employer cannot withhold your benefits derived from mandatory contributions, except for the purpose of offsetting severance or long service payments that are payable to you.  However, for voluntary contributions paid by your employer, forfeiture of benefits derived from such contributions is subject to the governing rules of your scheme.
24.	How do I transfer my accrued benefits from one scheme to another upon termination of employment?
	Answer:	You should fill in the "Scheme Member's Request for Fund Transfer Form" (Form MPF(S)-P(M)) and then submit it to your new scheme trustee or your new employer. The form can be obtained from your trustee or downloaded here.
25.	Will there be any charge for the transfer of my accrued benefits?
	Answer:	As the transfer of accrued benefits involves redemption and acquisition of fund units, there may be a spread on the bid-offer prices.  Other than this, trustees are generally not allowed to charge any fees and/or impose any financial penalties for the transfer of accrued benefits.
26.	How do I know if my accrued benefits have been properly transferred?
	Answer:	Your previous scheme trustee is required to ensure that your accrued benefits are properly transferred within 30 days after receiving your transfer request. They will then issue a transfer statement to you detailing the particulars of the transfer.  The trustee of your new scheme will send you a confirmation stating the amount received from your previous scheme trustee.  Even if the transfer is from your contribution account to your preserved account under the same existing scheme, you should check the information in the relevant documents issued by the trustee after the transfer.
27.	Can I withdraw my accrued benefits in an MPF scheme if I am in need of money?
	Answer:	As a scheme member, you are not allowed to withdraw your accrued benefits until you reach the age of 65.  Early withdrawal is only allowed under specific circumstances such as death, total incapacity, early retirement at the age of 60, small account balance (i.e. total accrued benefits not exceeding $5,000), or permanent departure from Hong Kong.
28.	How do I handle my accrued benefits when changing employer?
	Answer:	If you change employer, you may handle the accrued benefits in your contribution account in one of three ways:  a.    transfer them to the preserved account of an MPF scheme of your own choice and invest them therein; b. retain them in the previous scheme but under a preserved account and invest them therein; or c. transfer them to the contribution account under your new employer's MPF scheme and invest them therein.
29.	I received a bonus after leaving service with my employer.  Would the bonus be counted as relevant income?  If yes, how should I make contributions in respect of the bonus?
	Answer:	Relevant income is the consideration expressed in monetary terms paid by an employer to an employee for the services the employee renders.  As such, bonus makes up part of the relevant income.  If you received a bonus after leaving service with your employer, generally, your employer should include the bonus in the relevant income of the contribution period in which the bonus is ascertainable and falls due, and calculate the amount of contributions based on the maximum and minimum levels of relevant income.  When your employer informs the trustee of your end date of employment, he may as well advise that a bonus is to be paid to you, so that the trustee can make the necessary administrative arrangement in handling your MPF account.
30.	If I have not given any instructions to the MPF trustee(s) on how to handle my accrued benefits since the cessation of my previous job(s), how would they handle my accrued benefits in the account(s)?
	Answer:	If the trustee of your original scheme does not receive your instructions on how to handle your accrued benefits within three months after receiving the notice of your cessation of employment, the accrued benefits will automatically be transferred from the contribution account to a preserved account of the original scheme. Generally, the accrued benefits will be invested in the same fund/investment portfolio as stated in the original contribution account. You may also change your fund choice or investment portfolio by giving new instructions to the trustee. Please contact your trustee for details.
31.	Should I consolidate my MPF preserved accounts if I think I have too many?
	Answer:	If you have multiple preserved accounts, you may consider consolidating them for easier management.  You are advised to take into account a number of factors before consolidating your preserved accounts.  For example, you should take note of the required processing time and incurrence of charges because consolidation of accounts involves redemption/subscription of funds and a bid-offer spread may be charged by the trustees.  Also, you should take into consideration whether the trustee, MPF scheme, and investment portfolio that you intend to choose fit your personal circumstances.
32.	If I forget how many MPF preserved accounts I have, what can I do?
	Answer:	You can bring along your Hong Kong identity card during office hours to one of the MPFA offices to check if you have preserved accounts. Alternatively, you can download the enquiry form here, and mail or fax the completed form together with a copy of your Hong Kong identity card to the MPFA office at Kwun Tong. A reply letter will be sent to you by mail. The MPFA keeps a centralized database of members' preserved accounts, containing certain information such as the name of the trustee with which you have preserved accounts. However, certain account details, such as account number, funds invested and account balance, are not available.
33.	How do I withdraw my accrued benefits?
	Answer:	If you have reached the age of 65, you may present your Hong Kong identity card (or a copy) and a completed Claim Form for Payment of Accrued Benefits [Form MPF(S)-W] to your scheme trustee and request withdrawal of your accrued benefits.
34.	If I withdraw my accrued benefits at the age of 62 because of early retirement, am I allowed to enter the workforce again?
	Answer:	A scheme member aged 60 to below 65 who has retired and who wishes to withdraw his accrued benefits must statutorily declare that he has permanently ceased employment.  If you have withdrawn your accrued benefits because of early retirement and wish to re-join the workforce, you will have to be enrolled in an MPF scheme again.
35.	I want to withdraw my accrued benefits on the ground of early retirement, but my Hong Kong identity card only shows the year but not the exact month and day of my birth.  When will I be regarded as having attained the age of 60?
	Answer:	Under the MPF legislation, scheme members who have attained the age of 60 and have retired can apply for early withdrawal of MPF accrued benefits.  To make such an application, simply complete the “Statutory Declaration for Claims for Payment of Accrued Benefits on Grounds of Early Retirement” form [Form MPF(S) -W(SD1)] and make a declaration in the Public Enquiry Service Centre in the District Office, then return the declaration form together with the completed “Claim Form for Payment of Accrued Benefits” [Form MPF(S)-W] to your trustee. If your Hong Kong identity card shows only the year but not the exact month or day of your birth, your trustee will regard the last day of that year as your date of birth.  If you have made a statutory declaration on your date of birth, the trustee may take that day as your date of birth.
36.	If I withdraw my accrued benefits at the age of 55 due to total incapacity, can I re-enter the workforce by engaging in a different type of employment?
	Answer:	Yes.  But you will have to participate in an MPF scheme again.
37.	If I withdraw my accrued benefits because I am leaving Hong Kong permanently, can I come back to work in Hong Kong again in the future?
	Answer:	Yes. But you will have to participate in an MPF scheme again. You should note that the withdrawal of accrued benefits for this reason can only be made once in your lifetime.
38.	Can my employer use the accrued benefits in my MPF account to offset the severance payments or long service payments (SP/LSP) I receive?
	Answer:	Yes. If your employer has paid you SP/LSP in accordance with the Employment Ordinance, he may apply to the trustee to withdraw the relevant amount of benefits derived from the employer's contribution from your MPF account to offset the SP/LSP. If your accrued benefits derived from the employer's contributions (taking into account any profit or loss arising from the investments) exceed the amount of SP/LSP paid to you, the excess amount must be retained in your account. On the other hand, if the accrued benefits derived from the employer's contributions are not sufficient to fully offset the SP/LSP paid, the employer can withdraw the entire amount of the accrued benefits derived from employer’s contributions.
39.	What will the MPFA do if my employer does not make contributions for me?
	Answer:	If your employer does not pay the required mandatory contributions for you, your MPF trustee is required to report the situation to the MPFA. Upon receiving the trustee's report, the MPFA may impose a contribution surcharge on the employer and instigate civil action to recover the outstanding contributions and surcharges. The contribution and contribution surcharges are fully due to you.  Moreover, the MPFA may take prosecution action against the employer in default. You are encouraged to lodge a formal complaint with the MPFA so that immediate follow-up action can be taken to protect your benefits.  All complaints are treated in the strictest confidence.
40.	How can I recover contributions in arrears when my employer has become insolvent?
	Answer:	If your employer has become insolvent, the MPFA may collect relevant  information from you and file claims with the Insolvency Officer or liquidator in accordance with the insolvency proceedings in the hope of recovering the default contributions for you.  In distributing the money from the realization of assets of an insolvent employer, debts shall be paid in such order of priority as stipulated by law.  Unpaid MPF contributions, in the distribution of the property of the company, shall be paid in priority (with other preferential payments) to all other debts.  Upon receiving the sum from the liquidator, the MPFA will pay the amount to the respective MPF trustee for allocation to the relevant employees' MPF accounts.
41.	What happens to my accrued benefits if my employer's business is being wound up?
	Answer:	Mandatory contributions paid to MPF schemes will be vested fully as accrued benefits in the scheme members and kept by the custodian. Therefore, your accrued benefits in any MPF schemes will not be affected by the closure of your employer's business.
42.	Can I transfer my accrued benefits if there is a default contribution to be settled by my former employer?
	Answer:	Under the existing legislation, a scheme member cannot transfer his / her accrued benefits if there is a default contribution in the account concerned.  However, the scheme member may give written consent through the trustee to obtain  permission from the MPFA to give effect to the member’s election.