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General
Who will decide which service provider to be used and which scheme to join - the employer or employee?
Under MPF regulations, can an employee contribute more than the statutory amount of 5%?
Can MPF contributions be used to offset Long Service Payment or Severance
Payment upon the employee's termination of employment?
If the probationary period of a company is three months, is the employer required to set up
an MPF scheme after the employee has been employed for two months?
Can I disregard the maximum cap of monthly income (i.e. HK$20,000 per month)?
- Who will decide which service provider to be used and which scheme to join - the employer or employee?
An employer will be the final decision-maker when choosing an MPF trustee or service provider. However, employees can nominate any
MPF provider to preserve their MPF benefits upon termination of employment.
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- Under MPF regulations, can an employee contribute more than the statutory amount of 5%?
Yes. An employee can contribute more than the statutory amount of MPF contributions. If the employee elects to do so,
an employer must assist in deducting the agreed amount from the monthly salary and forwarding the contributions to the MPF trustee.
However, the employer does not have any obligation to match the amount of an employee's voluntary contributions.
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- Can MPF contributions be used to offset Long Service Payment or Severance Payment upon the employee's termination of employment?
Yes. An employer can use the accrued benefits in the MPF scheme that are attributable to the employer's contributions
to offset any Long Service Payment (LSP) or Severance Payment.
For example, if the accrued benefits are more than the LSP, the employer can withdraw an amount equal to the LSP to fulfill its obligations.
However, if the accrued benefits are less than the LSP, the employer can withdraw an amount equal to the accrued benefits as partial payment,
but must pay the LSP shortfall in order to fulfill obligations.
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- If the probationary period of a company is three months, is the employer required to set up an MPF scheme after the employee has
been employed for two months?
Yes. MPF regulations require an employer to enroll his employee into an MPF scheme upon completion of 60 days of employment. It
has nothing to do with the probationary period.
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- Can I disregard the maximum cap of monthly income (i.e. HK$20,000 per month)?
Yes. Although there is a maximum income level for calculating mandatory contributions, both employers and employees are allowed
to make additional contributions, which will be treated as voluntary contributions. An employer is not obliged to match the employees'
voluntary contributions. However, your MPF scheme will have governing rules for providing of payment, vesting and withdrawal of benefits
accrued from voluntary contributions that are paid for your employees' benefits.
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