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Self-employed Person
For temporary staff and freelance staff, do they have to join an MPF scheme?
What about employees who are recruited on a contract basis, say three months or six months?
I am the Director of a company. How much do I need to pay for mandatory contributions?
Is a sole proprietorship or partnership without any employees required to set up an MPF scheme?
Do self-employed people contribute 5% or 10% of their relevant income?
When should I pay the mandatory contributions?
What if I am both a self-employed person and an employee concurrently?
- For temporary staff and freelance staff, do they have to join an MPF scheme?
What about employees who are recruited on a contract basis, say three months or six months?
MPF regulations do not provide any exclusion for temporary or contract staff. However, if the employee is an expatriate who comes
to work in Hong Kong for a period of less than 13 months, this person is excluded from the MPF coverage. Freelancers will be treated as
self-employed persons and therefore required to join an MPF scheme.
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- I am the Director of a company. How much do I need to pay for mandatory contributions?
If you are a salaried director, you are regarded as an employee. Both you and the company are required to contribute 5% of your monthly
income (subject to a maximum of HK$2,000 in total). If you are a sole proprietor or a partner in partnership business, you will be classified
as a self-employed person and required to contribute 5% of your income.
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- Is a sole proprietorship or partnership without any employees required to set up an MPF scheme?
The sole proprietor or partner in a partnership will be regarded as a self-employed person and is required to contribute to an
MPF scheme for their own retirement benefits. If the sole proprietor or partner is earning less than HK$5,000 per month or HK$60,000 per year,
no contribution is required. If the person is earning more than these amounts, they need to contribute 5% of their income to an MPF scheme
as mandatory contributions, subject to a maximum of HK$1,000 per month or HK$12,000 per year.
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- Do self-employed people contribute 5% or 10% of their relevant income?
The self-employed people are only required to contribute 5% of their relevant income from their own resources.
However, they can also make additional voluntary contribution to the scheme.
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- When should I pay the mandatory contributions?
You may choose to contribute on a monthly or yearly basis. If you choose to contribute on a yearly basis, you should pay your mandatory
contributions to your scheme trustee by the end of each financial year of the scheme. If you choose to contribute on a monthly basis, you
should specify to your scheme trustee a monthly date as your contribution day and make your monthly mandatory contributions by that date each
month. You should inform your scheme trustee whether you want to contribute on a monthly or yearly basis when you first enroll in an MPF scheme.
For the next financial year of the scheme, you should inform your scheme trustee of your choice (monthly or yearly) at least 30 days before
the end of each financial year of the scheme. (Sources: MPFA Website)
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- What if I am both a self-employed person and an employee concurrently?
You have to be enrolled in two MPF schemes. As a self-employed person, you have to enroll yourself in an MPF scheme. As an employee, your employer is required to enroll you in an MPF scheme and make mandatory contributions, when you have been employed under an employment contract for 60 days or more.
(Sources: MPFA Website)
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