MPF in HK
On 1 December 2000, the Hong Kong Government formally introduced the MPF legislation, mandatory request those aged between 18 to 65 and employed persons in Hong Kong to have a MPF account and act as contributors. It is not until the employee who reaches 65-year-old can it be utilized or operate the funds in the MPF accounts.
Employers must comply with its responsibilities under the MPF legislation, that includes, the arrangements for all eligible employees to participate in the MPF Scheme as well as to arrange for their contributions. The employer, whether employs in a part-time or full-time format, as long as the employment relationship between employers and employees exists and last for 60 days or more, has to enroll for its employee in an MPF scheme.
For new employment, there is no need for the employee to responsible for the employment relationship for the first 30 days and those of its first incomplete employee's portion of the payroll period to make contributions ( ie " exempted contribution day " ) , for example : if the employee starts employment at 19 June, for the first 30 days of its employment ( ie, 19 June – 18 July ) and after the first incomplete payroll period ( ie, 19 to 31 July ), he is not responsible for the employee contribution. However, the employer shall be responsible since from the date of the employment and make contributions. An employer who fails to contribute from the employee's first date of employment is guilty of default contributions, and which may be prosecuted.
Under the current MPF system, the monthly income of those are of more than HKD 6500, 5% of its revenue is required as the minimum for mandatory contributions. The maximum mandatory contribution is HKD 1,250 per month ( ie income of HKD 25,000). On the contrary, there is no minimum requirements for employer’s contribution portion, if the employees’ monthly income lower than HKD 6500, the employers have to responsible for the employee's portion - mandatory contribution of 5% ; while the maximum contribution on the employees' contribution portion is HKD 1,250 per month.