Employer

1. What are the responsibilities of an employer under MPF regulations?

As an employer, the responsibilities under MPF regulations include:

·    Informing the trustee of any change of your company's particulars within 30 days from the effective date of change.

·    Keeping the pay record of 'relevant income' of a 'relevant employee' (for at least 6 months) and record of the employment date (for at least 6 months after an employee's employment with the employer ceases).

·    Keeping remittance statement records (for at least 7 years) and the particulars of a scheme member (at least 6 months after the employee's employment with the employer ceases).

·    Enrolling all eligible relevant employees in an MPF Scheme within the first 60 days of employment.

·    Submitting remittance statement and make contribution payment for every contribution period on or before the 10th day of the calendar month following the end of the contribution period. If the contribution day (i.e. the 10th day after the last day of the contribution period) falls on a Saturday, a public holiday, or a gale warning day or black rainstorm warning day as defined by section 71(2) of the Interpretation and General Clauses Ordinance (Cap. 1) ("Specified Day"), the next following day that is not a Specified Day is the contribution day.

·    Providing contribution pay records to all scheme members within 7 working days after payment of contribution.

·    Notifying the trustee of the employee who ceased to be employed on or before the 10th day of the calendar month following the employee's last day of employment.

2. Is it necessary to inform the employees of the amount of mandatory contribution made for them?

Yes. According to the regulations, employers need to provide a monthly pay record to each of the scheme members within 7 working days after the mandatory contribution are made. Information on the contribution record should include the employee's relevant income, the amount of contribution and the date payment made to the scheme trustee.

3. What salary items should take into consideration when calculating mandatory contributions?

When calculating mandatory contribution, 'relevant income' should be used. 'Relevant income' includes wage, salary, leave pay, housing allowance and other housing benefit*, fee, commission, bonus, gratuity, perquisite and allowance. However, long service payment / severance payment, payment in lieu of notice and compensation for occupational injuries are excluded. (*Concerning to the amendment relating to removing the special treatment and excluding housing allowance and other housing benefit from relevant income, it will be effective on 1 Nov, 2008.)

4. How should employer make contribution for each contribution period?

Employer is required to make mandatory contribution payment for regular employees on or before the 'contribution day' (the 10th day after the last day of the contribution period). If the contribution day falls on a Saturday, a public holiday, or a gale warning day or black rainstorm warning day as defined by section 71(2) of the Interpretation and General Clauses Ordinance (Cap. 1) ("Specified Day"), the next following day that is not a Specified Day is the contribution day."

5. What should employer pay attention when making MPF arrangements?

In the course of making MPF arrangements for your employees, employer may come across issues that may not be clear. For details, please visit the MPFA’s website as follows:

http://www.mpfa.org.hk/eng/main/employer/save_your_troubles.jsp 

For other points-to-note on making contributions, please refer to the Employers’ Common Misconceptions in Handling MPF Contributions in the MPFA’s website.