How much do I need to contribute under MPF each month?
The employer must pay a minimum contribution of 5% of the employee's relevant income per month (up to a maximum of HK$20,000 relevant income).
What are my responsibilities under MPF?
The employer has various responsibilities under MPF, such as
Arranging an MPF scheme for your employees
Ensuring your eligible employees are enrolled into an MPF scheme
Calculating the amount of relevant income and contributing 5% on behalf of each member
Deducting 5% and also voluntary contributions (if any) from your employee's relevant income
Sending contributions together with a remittance statement to the trustee of the Plan within 10 days after the last day of the contribution period
Sending members monthly pay-records
Answering member's enquiries about contributions
Displaying participation certificates issued by the MPFA
Advising the trustee of the Plan of changes of business and member information
Informing the trustee when a member terminates service
Complying with the legislation at all times
Click here to see how our Mandatory Provident Fund will help you to fulfil your responsibilities.
What types of records do I need to keep for MPF?
You are required to keep
records of employees, including each payment of relevant income for at least six months after payment; and date of employment, name and correspondence address, notice of election given in relation to selection between ORSO and MPF schemes (if applicable), notice given by member authorizing deduction of voluntary contributions from salary for at least six months after the employment ceases
information required to be included in the remittance statement for at least seven years
Are there any tax advantages under MPF?
The employer's contributions are regarded as an operating expense. As such they may be deducted from assessable profits. The maximum is 15% of the employee's annual emoluments.
Employers are advised to seek professional advice regarding their own particular tax circumstances.
What is a pay record and what information should be included in the Pay record?
Pay record is similar to a pay advice which indicates the relevant income earned by the employee during the month and the contributions made for the MPF. Employer has to compile and give the pay record to the employee not later than 7 working days after the payment of contributions
According to the MPF Regulation, a pay record must contain the following information:
amount of relevant income paid to the employee during the contribution period
the mandatory contributions and voluntary contributions made by the employer and employee respectively
the date of the contributions paid to the trustee
What is a participation certificate?
As an employer, after you have participated in an MPF scheme, the MPFA will issue a participation certificate to you. You are required to display the participation certificate at the premises where your employees work. If your employees do not perform work at your premises, you should display the certificate at your principal place of business. The displayed certificate may either be the original certificate or a certified copy issued by MPFA.
Can I use my contributions to offset Long Service Payments / Severance Payments?
As an employer, you are entitled to use your contributions, and all investment earnings thereby accumulated, to offset against long service and severance payments as required under the Employment Ordinance.
How do I set up my MPF scheme easily?
Our Mandatory Provident Fund provides comprehensive one-stop service including trusteeship, administration and investment.
It is easy for you, the employer and easy for your employees. Call our Customer Services Hotline 28022812 to get more information. Register with us today to enjoy the tremendous benefits you can get from our Mandatory Provident Fund.
Click here to access your scheme information if you are an employer of Elite / Double Easy MPF.
