What is the Mandatory Provident Fund (MPF)? Do I, as an employer, need to make an MPF contribution?
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The Mandatory Provident fund is a retirement protection framework set up by the Hong Kong Government, and acts as a safety net for retirement for the ageing population in Hong Kong. As the name suggests, it is mandatory for both the employers and employees to make contributions to the fund.
Exceptions to the MPF
If your employee is employed for at least 60 days, you must contribute to the MPF, unless they fall under any of the categories, for example:
- employees and self-employed persons who are under 18 or over 65 years of age
- domestic employees
- self-employed hawkers
Choosing an MPF scheme
As an employer, you would normally select which MPF scheme to contribute to, but you are encouraged to consult your employees before making the decision. You may also offer two or more MPF schemes for employees to choose from.
You can compare different schemes on the MPF Fund Platform, provided by the MPF Authority.
Size of MPF contribution
Your contribution to the MPF will depend on your employee’s monthly income.
When to make an MPF contribution
On or before the 10th day of each month, employers must make the mandatory contribution for employees who are paid on a monthly basis.
Within 7 working days of making the mandatory contributions, employers must provide each employee with a monthly pay record. The pay record should include the employee’s relevant income, the number of contributions made and the date the contributions were paid.
If you have recently employed someone, you must enrol them into an MPF scheme within the first 60 days, and on the 10th day of that same month, you must make your first contribution to MPF.
Key Takeaways
- An employer must make an MPF contribution for their employee
- An employer can choose which MPF fund to make the contribution to
- The size of the MPF contribution will depend on the employee’s income
- An employer should make a contribution on or before the 10th day of each month
Bibliography:
- Mandatory Provident Fund Association ‘Employers MPF’: https://www.mpfa.org.hk/en/role-based/employers
