Amendment of Maximum Level of Relevant Income for MPF Contributions to $25,000, with effect from 1 June 2012

The Legislative Council has passed the amendment of the maximum level of relevant income for MPF mandatory contributions, effective 1 June 2012. Key points about the amendment are as below:

• For monthly-paid regular employees, the maximum level of relevant income has been amended from $20,000 to $25,000 monthly. The maximum contributions will be adjusted from $1,000 to $1,250 monthly accordingly. 

• For self-employed persons, the maximum level of relevant income has been amended from $20,000 to $25,000 monthly and from $240,000 to $300,000 yearly. The maximum contributions will be adjusted from $1,000 to $1,250 monthly or from $12,000 to $15,000 yearly accordingly. 

For contribution periods commencing on or after 1 June 2012, mandatory contributions to be made by employees, employers and self-employed persons should be calculated according to the following tables:

(1) Monthly paid regular employees and their employers

Monthly relevant income Mandatory contribution amount Employer's contributions Employee's contributions Less than $6,500 Relevant income x 5% Not required $6,500 to $25,000 Relevant income x 5% Relevant income x 5% More than $25,000 $1,250 $1,250

(2) Self-employed persons making contributions monthly or yearly

Relevant income Mandatory contribution amount Monthly Yearly Less than $6,500 Less than $78,000 Not required $6,500 to $25,000 $78,000 to $300,000 Relevant income x 5% More than $25,000 More than $300,000 $1,250 (per month) or $15,000 (per year)

(3) Casual employees2 in the catering and construction industries enrolled in Industry Schemes

For casual employees who are members of Industry Schemes, the maximum level of relevant income has been amended from $650 to $830 daily, effective 1 June 2012. Daily paid casual employees and their employers Non-daily paid (e.g. paid on a weekly or half-monthly basis) casual employees and their employers Daily relevant income Mandatory contribution amount Average daily relevant income3 Mandatory contribution amount Employer's contributions Employee's contributions Employer's contributions Employee's contributions Less than $250 $7.5 Not required Less than $250 Relevant income x 5% Not required $250 or more but less than $260 $13 $13 $250 to $830 Relevant income x 5% Relevant income x 5% $260 or more but less than $390 $15 $15 $390 or more but less than $520 $22.5 $22.5 $520 to $650 $30 $30 More than $650 to $830 $37.5 $37.5 More than $830 $41.5 $41.5 More than $830 $41.5 per day4 $41.5 per day4

Friendly reminders for employees

Check whether your employer has made accurate contributions for you for the contribution periods commencing on or after 1 June 2012.

Complementary action by employers

Employers should update their relevant administrative arrangements, including the programme / system for calculating MPF contributions in order to ensure that contributions are made according to the new level for the contribution periods commencing on or after 1 June 2012.

Complementary action by self-employed persons

Self-employed persons will be contacted by their trustee(s) regarding the updating of their contribution arrangements.

For enquiries, please call the MPFA, your employer or trustee(s).

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¹  "Relevant income" refers to any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (including housing allowance and other housing benefit), expressed in monetary terms, paid by an employer to an employee. It does not include any severance or long service payments under the Employment Ordinance.
²  "Casual employees" refer to employees employed on a daily basis or a fixed period of not more than 60 days.
³  The calculation formula for the average daily relevant income is total amount of relevant income in the relevant contribution period ÷ number of calendar days in the contribution period. Please refer to the "MPF Industry Schemes" leaflet for related information. The leaflet is available for download on the MPFA website, and for collection at MPFA offices, Public Enquiry Service Centres of District Offices and regional offices of the Labour Department.
⁴  This refers to the number of calendar days in the relevant contribution period.