FAQs for Employers

1.	My sons and daughters are helping me run my family business.  Do I need to enrol them in an MPF scheme?
	Answer:	If you are employing your family members to run your family business and if they live at the same address as yours, then you are not required to enrol them in an MPF scheme.  However, if they do not live at the same address as yours, then you have to enrol them in an MPF scheme.
2.	I am running a business in the Mainland.  Do I need to enrol my employees who are employed in the Mainland in an MPF scheme?
	Answer:	You are not required to enrol your Mainland employees in an MPF scheme. The MPF System provides retirement benefits only to members of the workforce in Hong Kong.
3.	I employ a maid to undertake domestic work for me.  Do I need to enrol her in an MPF scheme?
	Answer:	"Domestic employees" who provide domestic services in the residential premises of their employer are exempt persons and are not required to join an MPF scheme.
4.	I have hired a few overseas employees to work for me.  Do I need to enrol these expatriates in an MPF scheme?
	Answer:	If the period during which your expatriate employees are given permission to land or remain in Hong Kong for employment purposes does not exceed 13 months, or if the expatriate employees are members of a provident, pension, retirement or superannuation scheme run in a jurisdiction outside Hong Kong, they are exempt from the MPF Schemes Ordinance and do not need to join an MPF scheme.
5.	An expatriate in our company was given permission to stay in Hong Kong for 9 months for the purposes of employment but later the permission was extended for another 6 months.  Do I need to enrol him in an MPF scheme?
	Answer:	Assuming your expatriate employee is not covered by any overseas retirement scheme, as the original period (9 months) and the extended period (6 months) together exceed 13 months, he/she ceases to be exempt from the MPF Schemes Ordinance from the end of the 13-month period after the beginning of the original period. You therefore need to enrol your expatriate employee in an MPF scheme within 60 days from the end of the 13-month period.
6.	My expatriate employee is a member of an overseas retirement scheme.  Does that scheme have to be approved or recognized by the MPFA?
	Answer:	No.  There is no requirement for an overseas scheme to be approved, or recognized by, or registered with the MPFA.  As long as the scheme is a scheme registered or domiciled outside Hong Kong and the person concerned meets the exemption conditions specified in the MPF legislation, the person is automatically exempt from the MPF Schemes Ordinance.
7.	I operate a ship management company and employ a number of seamen to work on board ocean-going vessels.  Do I need to enrol these seamen in an MPF scheme?
	Answer:	Any person who is serving under a crew agreement within the meaning of the Merchant Shipping (Seafarers) Ordinance or who is serving on board a ship not registered in Hong Kong, is exempt from the MPF Schemes Ordinance.  If your seamen are serving under a crew agreement within the meaning of the Merchant Shipping (Seafarers) Ordinance or they are serving on board a ship not registered in Hong Kong, you will not have to enrol them in an MPF scheme.
8.	I am a hawker and have a few employees working for me.  Am I covered by the MPF System?
	Answer:	Hawkers within the meaning of the Public Health and Municipal Services Ordinance are exempt from the MPF System.  If you are a hawker and hire employees, then you are an employer.  You must, in your capacity as an employer, enrol your employees in an MPF scheme.  If you are a "self-employed hawker" and do not have any other workers under your employment, you are exempt from the MPF Schemes Ordinance.
9.	Who chooses an MPF scheme?
	Answer:	Under the MPF Schemes Ordinance, employers are required to enrol their relevant employees in an MPF scheme.  As an employer, you can choose more than one MPF scheme for your employees so that they can choose schemes and funds that best suit their needs.  You are encouraged to consult your employees when selecting an MPF scheme for them.
10.	Can my employees choose their own MPF scheme and ask me to enrol them in the scheme?
	Answer:	As an employer, you have the right to choose the MPF scheme for your employees. However, you may enrol your employees in any MPF scheme they choose themselves.
11.	Can I offer different MPF schemes for employees to choose?
	Answer:	Yes, you can offer more than one MPF scheme for employees so that they can choose the MPF scheme and fund(s) that would best suit their needs.
12.	I am the owner of a construction company.  Some of my employees are construction workers who are employed on a short-term basis whilst the rest are permanent clerical and managerial staff.  Can I enrol all my employees in an industry scheme?
	Answer:	Yes.  An employer who is primarily engaged in any of the construction works specified by the MPFA can choose to enrol all his employees, including the clerical and managerial staff, in an industry scheme. The major categories classified under the construction industry are:    1. Foundation and associated works; 2. Civil engineering and associated works; 3. Demolition and structural alteration works; 4. Refurbishment and maintenance works; 5. General building construction works; 6. Fire services, mechanical, electrical and associated works; 7. Gas, plumbing, drainage and associated works; and 8. Interior fitting out works. Alternatively, you can choose to enrol the construction workers in an industry scheme and the other employees in a non-industry scheme such as a master trust scheme.  You can also choose to enrol all employees in a master trust scheme.
13.	I am the employer of a holding company which owns a number of subsidiary companies.  One of the subsidiary companies is engaged in the catering business and the rest are engaged in other industries.  Can I enrol the employees in all the subsidiary companies in an industry scheme?
	Answer:	No.  You can only enrol those employees who work for the catering establishment(s) in an industry scheme. For the purpose of the industry schemes, the catering industry covers holders of food business licences or permits under the Food Business Regulation (Cap. 132, Subsidiary Legislation), canteens at schools and workplace and catering establishments inside clubs.  The following are examples of catering establishments: 1. Food factories, milk factories, frozen confection factories & bakeries; 2. Restaurants; 3. Factory canteens; 4. Siu mei or lo mei shops; 5. Cold stores; 6. Fresh provision shops; 7. Cooked food stalls operating in a public market; 8. Cooked food stalls which are granted hawker licences; and 9. Chinese herb tea shops.
14.	My company is in the catering business.  Am I required by law to participate in an industry scheme?
	Answer:	No.  Participation in industry schemes is voluntary.  An employer who is engaged in the construction industry or the catering industry may choose to enrol his employees in an industry scheme or other types of MPF schemes such as a master trust scheme. It may be more cost-effective, however, for employers in these two industries to enrol their employees in an industry scheme as industry schemes are specially designed for the unique nature and operational practices of these industries.
15.	How should I calculate mandatory contributions for casual employees under the MPF System who are paid on a daily basis?
	Answer:	For a casual employee who is a member of an Industry Scheme and is remunerated on a daily basis, you must make mandatory contributions in accordance with the scale of contributions as shown below: 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
16.	I have enrolled all my employees (some of them are casual employees whilst the rest are permanent staff) in an industry scheme.  Is the scale of contributions applicable to my permanent staff who are not casual employees as well?
	Answer:	No.  The scale of contributions is applicable to casual employees who are members of the industry schemes only.  The contributions to be made in respect of a member of an industry scheme who is not a casual employee is calculated in accordance with the rate of 5% each from the employer and the employee (subject to the maximum and minimum levels of relevant income) as if the employee is enrolled in a master trust scheme.
17.	If I have enrolled a casual employee in an industry scheme, do I need to inform the scheme trustee when I cease to employ him?
	Answer:	No.  In the event of cessation of employment of a casual employee who is a member of an industry scheme, the employer is not required to inform the trustee of the cessation of employment.   If the casual employee ceases to be engaged in the catering industry or the construction industry, he may terminate the account in the industry scheme and elect to have the accrued benefits transferred to another MPF scheme.
18.	What exemptions do I have if I enrol my casual employees in an industry scheme?
	Answer:	For casual employees whose mandatory contributions are made on the next working day (other than Saturday) immediately after the relevant income is paid, their employers are exempt from the following: 1. Provision of remittance statements to the scheme trustee; and 2. Provision of monthly pay records to the casual employees. In addition, employers are not required to keep records of payment of relevant income nor to help trustees distribute scheme information and documents to casual employees.
19.	What should I consider when choosing an MPF scheme?
	Answer:	Although all MPF schemes have to comply with the provisions of the MPF Schemes Ordinance, each MPF scheme has its own governing rules and constituent funds, and each constituent fund has its own investment policy.  As an employer, you should be aware of the different options available in the market and consider factors including governing rules of the schemes, investment policies of the constituent funds, fees and charges payable under the schemes, etc.  You may also consult your employees in selecting an MPF scheme that you and your employees consider most suitable.
20.	Do I need to submit an application to the MPFA for the MPF scheme in which I propose to enrol my employees?
	Answer:	If you intend to participate in a master trust scheme or an industry scheme, you do not need to submit any application to the MPFA.  You are simply required to follow the relevant enrolment procedures, such as filling in an enrolment form, as required by the trustee of the scheme you intend to participate in.  If you intend to set up your own employer sponsored scheme, you should consult a lawyer regarding the establishment of the scheme.  You must also appoint an approved trustee for your scheme who will then submit an application to the MPFA for approval of your scheme.
21.	What should I receive after I have enrolled my employees in an MPF scheme?
	Answer:	After your application for membership of an MPF scheme is submitted, you will be given a notice of acceptance within 30 days from the date on which you submit all the information required for the application, or from the date on which you agree to observe and accept the governing rules of the scheme, whichever is later. Your scheme trustee will report your participation in the scheme to the MPFA. Upon receipt of such information, the MPFA will issue a participation certificate to you.  You are required to display the participation certificate at the premises where your employees are employed.  If your employees do not perform work at your premises in Hong Kong, you should display the certificate at your principal place of business in Hong Kong.  The displayed certificate may either be the original certificate or a certified copy issued by the MPFA.
22.	If I have enrolled my employees in different MPF schemes, do I need to display all the participation certificates?
	Answer:	Yes.  But if you have more than one office and the employees in each of your offices are participating in different MPF schemes, you are only required to display at the relevant office the relevant participation certificates in respect of the schemes your employees working at that office are members of.
23.	If I have more than one office, how should I display the participation certificates?
	Answer:	If your employees work at different offices, you should request the MPFA, through your MPF service provider, to issue a sufficient number of certified copies of the certificate for display at all relevant offices.  If you are occupying several floors in the same building, you are only required to display one certificate per building.
24.	How do I know whether a scheme is an MPF scheme and whether a trustee is approved by the MPFA?
	Answer:	The MPFA keeps registers of all registered MPF schemes and approved trustees. Members of the public are welcome to inspect the registers at the offices of the MPFA or on MPFA's website at the "Registers & Useful Lists" Section.
25.	There are many agents in the market selling MPF schemes.  How do I know if these people really know the MPF System?
	Answer:	Anyone selling MPF schemes, or advising clients on the constituent funds or the underlying approved pooled investment funds of MPF schemes, must be registered as an MPF intermediary. MPF intermediaries are required to pass an examination and to apply for registration, before they are issued with MPF intermediary certificates.  The certificates indicate whether the intermediary is permitted to sell MPF schemes without rendering specific investment advice, or whether he is permitted to advise on securities and/or insurance policies.  In the initial contact with clients, an intermediary should identify himself by showing his business card bearing his MPF registration number and should explain to clients what type of advice/service he can give in accordance with the conditions prescribed on the MPF intermediary certificate.
26.	The monthly income that I pay my employee is below the maximum level of relevant income but it fluctuates from month to month.  Does that mean the mandatory contributions for my employee also fluctuate?
	Answer:	Yes.  Mandatory contributions to be paid in respect of an employee for a particular contribution period are based on the relevant income of the employee in that period, subject to the maximum and minimum levels of relevant income.  If the income of your employee fluctuates from month to month, then the mandatory contributions will fluctuate correspondingly. Under the MPF Schemes Ordinance, it is the employer's responsibility to ensure the calculations of the relevant income and mandatory contributions payable in respect of an employee are accurate.
27.	I provide some non-monetary benefits, such as air tickets, to my employees.  Do such benefits form part of the "relevant income" of my employees?
	Answer:	No. Non-monetary benefits are not regarded as "relevant income".
28.	What is "contribution period" and how should I make contributions for each contribution period?
	Answer:	"Contribution period" generally refers to each period for which the employer pays relevant income to the employee.  Under the MPF Schemes Ordinance, an employer is required to make mandatory contributions in respect of an employee (who is not a casual employee) on or before the 10th day of each month (i.e. the "contribution day").  If the contribution day is a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, the next following day which is not a Saturday, a public holiday, a gale warning day or a black rainstorm warning day will be considered as the contribution day. For example, if 10th January is Saturday, the contribution day will be postponed to 12th January (Monday). (Note: The contribution day is not affected by the "pay day", i.e. whether the employer pays the employee at, before or after the end of the month.)
29.	I am required to provide an accompanying remittance statement when I pay mandatory contributions to my scheme trustee.  What should be included in the remittance statement?  Do I need to submit the remittance statement to the MPFA for approval?
	Answer:	The remittance statement should include the following information in respect of each employee: amount of relevant income for the contribution period concerned; amount of employer's portion of mandatory contribution paid for that contribution period; amount of employee's portion of mandatory contribution paid for that contribution period; amount of employer's voluntary contribution paid, if any; and amount of employee's voluntary contribution paid, if any. You are not required to submit the remittance statement to the MPFA for approval.
30.	How do trustees facilitate employers to make MPF contributions and manage their employees' records?
	Answer:	Employers are required to submit remittance statements setting out the contribution details of their employees together with contribution payment to trustees by the contribution day of each month.  To facilitate employers to make MPF contributions, MPFA has required all MPF trustees to offer an option to all employers to receive remittance statement templates before the end of the contribution month.  The remittance statement templates will show information such as the amount of relevant income and contributions of each relevant employee last known to the trustees.  Trustees are also required to give clear guidance to employers on how to contact trustees if they fail to receive the remittance statement templates by the usual or agreed date of receipt, and how to amend the information on the remittance statement, where necessary, before returning the completed remittance statement to trustees. Besides, some trustees provide additional services to employers such as enquiry hotline, monthly statements and online services for employers to access their transaction details and contribution information of employees.  Some trustees also provide payroll software to employers to manage employees’ records and to facilitate the preparation and electronic submission of remittance statements.
31.	Should I inform my employees of the amount of mandatory contributions made on their behalf?
	Answer:	As an employer, you are required to provide monthly pay-records to each of your employees within seven working days after the mandatory contributions are made.  Information in the pay-record should include the employee's relevant income, the amount of contributions made and the date the contributions were paid to the scheme trustee.
32.	What happens if I fail to settle the payment of mandatory contributions for my employees?
	Answer:	An employer who fails to make mandatory contributions for his employees (who are not casual employees) for the previous month by the contribution day (i.e. the 10th day of each month) is liable to pay a surcharge calculated at 5% of the amount of default contributions.  Apart from paying surcharge, you may also be subject to a financial penalty of $5,000 or 10% of the amount of default contributions (whichever is greater). Defaulting employers may also be prosecuted and is liable to a maximum penalty of imprisonment for 3 years and a fine of $350,000. Moreover, an employer who fails to remit deducted wages as MPF contributions to the trustees concerned is liable to a maximum penalty of imprisonment for 4 years and a fine of $450,000.
33.	The law only requires me to pay a mandatory contribution of 5% of my employee's income.  Can I make extra contributions for my employees?
	Answer:	Yes.  You are free to make voluntary contributions for your employees and set the rules governing payment method, vesting and withdrawal of benefits derived from voluntary contributions made to the scheme concerned.
34.	If I am not satisfied with the performance of the MPF scheme in which I have enrolled my employees, can I change the scheme? What should I do?
	Answer:	Yes.  You have the right to switch to another MPF scheme and transfer the accrued benefits of your employees to that scheme.  To start the transfer process, you should apply in writing to the trustee of the new scheme.  Upon receipt of your application, the new trustee will arrange with the existing trustee to complete the transfer. Before switching to another MPF scheme, you are encouraged to communicate with your employees on the proposed arrangements well in advance.
35.	What should I do if my employee ceases employment?
	Answer:	Within 10 days after the last day of the calendar month in which the employee ceases employment, you must send a written notice to your MPF scheme trustee stating the date on which the employment ceased. You may also inform the trustee of the employee’s cessation of employment in the remittance statement.  The employee's accrued benefits will be retained in the scheme until the employee elects for a transfer.
36.	What should I do if I need to pay severance payments or long service payments (SP/LSP) to my employee?
	Answer:	An employer is bound by the Employment Ordinance to pay SP/LSP to an employee where applicable.  If you have paid your employee SP/LSP in accordance with the Employment Ordinance, you may apply to the scheme trustee to withdraw the relevant amount of accrued benefits derived from your mandatory contribution (and voluntary contributions, if any) from the MPF account of the employee to offset the SP/LSP. If the accrued benefits derived from your contributions (taking into account any profit or loss arising from the investments) exceed the amount of SP/LSP paid to the employee, you can withdraw an amount of benefits equal to the amount of SP/LSP paid but the excess amount must be retained in the MPF account of the employee. On the other hand, if the accrued benefits derived from your contributions are not sufficient to fully offset the SP/LSP paid, you can withdraw the entire amount of the accrued benefits derived from your contributions.