1. enrolling your employees within the regulatory deadlines
2. calculating contributions and preparing a remittance statement showing each employee’s relevant income and the amount of mandatory and any additional voluntary contributions for each contribution period
3. paying contributions by the contribution day
4. informing us when an employee ceases employment by the regulatory deadlines
5. providing your employees with a pay slip showing the contributions that have been made and the information required according to regulatory requirement

Employers must contribute 5% of an employee’s relevant income per month subject to the maximum relevant income level. Employees are required to match this portion unless their relevant income is below the minimum relevant income level.

Self-employed persons also have to contribute 5% of their relevant income subject to the maximum relevant income level. They can opt to make contributions on a monthly basis or a yearly basis. If their relevant income is below minimum relevant income level on a monthly or a yearly basis, they are not required to contribute but still need to be enrolled into an MPF scheme.

For the minimum and maximum relevant income levels, please visit MPFA website at www.mpfa.org.hk.

Employers and the self-employed can opt to make additional voluntary contributions in addition to mandatory contributions.

Employees can make additional voluntary contributions via payroll deduction by their employers, or choose to make Flexi-Contributions (non-employment related voluntary contribution) or tax deductible voluntary contributions (non-employment related tax deductible voluntary contribution) on their own without going through their employers.

All mandatory contributions for members are fully and immediately vested as accrued benefits once they are allocated to the members’ MPF accounts. Investment income or profit derived from the investment of accrued benefits within the MPF funds is also vested to the relevant members.

Employers can offset a long service payment or severance payment made to their employees under the Employment Ordinance with vested accrued benefits derived from the employer’s mandatory and voluntary contributions (including ORSO transfers) under an MPF scheme. Employers can request a refund of the relevant amount from the MPF account of their employees after paying the employees.

In handling the request for offsetting the long service payment or severance payment, we will calculate the relevant amount according to the following offset sequence:

1. Employer’s voluntary contributions (if applicable)
2. Additional voluntary contributions Benefits attributable to employer’s ORSO transfers (if applicable)
3. Employer’s special contributions (if applicable)
4. Employer’s mandatory contributions.

All benefits will be paid in Hong Kong dollars.

MPF mandatory and additional voluntary contributions made by employers are profits tax deductible. Employees and self-employed person’s mandatory contributions and voluntary contributions contributed into tax deductible voluntary contributions accounts are also tax deductible but their additional voluntary contributions not contributed into tax deductible voluntary contributions accounts or Flexi-Contributions are not tax deductible. For further details on tax issues, please refer to the latest announcements by the Inland Revenue Department of the Government of the Hong Kong SAR.