Coverage
MPF is an employment-based retirement protection system. Except for
exempt persons, employees (regular or casual) and self-employed persons
who are at least 18 but under 65 years of age are required to join an
MPF scheme.
Contributions Employee and EmployerEmployees and employers who are covered by the MPF System are each required to make regular mandatory contributions calculated at 5% of the employee’s relevant income to an MPF scheme, subject to the minimum and maximum relevant income levels. For a monthly-paid employee, the minimum and maximum relevant income levels are $6,500 and $25,000 respectively. The current minimum relevant income level of $6,500 per month applies to
contribution periods commencing on or after 1 November 2011 while the
current maximum relevant income level of $25,000 per month applies to
contribution periods commencing on or after 1 June 2012. For the
previous minimum and maximum relevant income levels and the amount of
mandatory contributions payable, employees and employers can contact
their trustee or MPFA for details.
"Relevant income" refers to
all monetary payments paid or payable by an employer to an employee,
including wages, salary, leave pay, fees, commissions, bonuses,
gratuities, perquisites or allowances (including housing allowance or
other housing benefit), but excluding severance payments or long service
payments under the Employment Ordinance (Chapter 57, Laws of Hong
Kong).
Both employees and employers are free to make voluntary contributions in addition to mandatory contributions.
Membership certificateOnce an employer has enrolled an employee in an MPF scheme, the MPF trustee will issue a membership certificate to the employee within 60 days after he/she has become a member of the scheme.
Features of the HK MPF System
For further MPF information, please visit MPFA website.
Source: MPFA
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