Should part-time employees also enroll in the MPF plan?

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Miss Ho is a newly hired HR of a chain store. She is mainly responsible for the company’s personnel file and MPF contribution, etc. The company has hired many part-time salesmen.  One day, a colleague told Miss He that she should enroll the part-time salesperson in the MPF plan. Miss He was surprised. Should part-time employees also enroll in the MPF plan?

The situation of salesman A is that he has a full-time job in a foreign trade company and only works as a part-time salesman in Miss He’s company at night or on weekends.  He works only 3 days a week, 3 or 4 hours a day, and the foreign trade company has enrolled him in the MPF plan. In this case, does Miss He still need to make an MPF contribution for him?

With these questions in mind, Miss He looked up MPF Legislation. Previously, the MPF system covered both full-time and part-time employees. Employers were required to enroll part-time employees in an MPF scheme in accordance with the law, regardless of the number of hours they worked per week, provided they were between the ages of 18 and 64 and had been employed for at least 60 days.

When are part-time employees enrolled in an MPF scheme?

Once a part-time employee has been employed for 60 days, the employer must enroll the employee in an MPF scheme and make contributions for the first 60 days.  The “60 days” provision has nothing to do with the actual number of working days and hours, and is calculated on the basis of the employment relationship between the employee and the employer on a calendar basis (including holidays).

However, assuming that the employee leaves the company on the 59th day of employment, the employer is not required to make contributions for this period of employment.

How is the MPF contribution for part-time employees calculated?

If part-time employees are paid monthly,

The amount of contribution is calculated on the basis of the monthly relevant income as for full-time employees: 

Monthly Relevant IncomeEmployer’s mandatory contributionsEmployee’s Mandatory contributions
Lees than $7,100 Relevant income x 5% No contribution is required
$7,100 -$3,0000Relevant income x 5%  Relevant income x 5% 
More than $30,000 $1,500$1,500

If part-time employees are paid by day, week or half a month, 

The minimum daily income of $280 and maximum daily income of $1,000 should be calculated to determine the contribution amount:  

Salary typeLower limit of relevant income Upper limit of relevant  income
Daily paid$280$1000
Weekly paid$1960($280*7)$7000($1000*7)
Paid per two weeks$4200($280*15)$4480($280*16)$15000($1000*15)$16000($1000*16)

According to the upper and lower limits of the relevant income, the employer and employee contribution arrangements are as follows:  

Monthly Relevant IncomeEmployer’s mandatory contributionsEmployee’s Mandatory contributions
Below lower limit of relevant income Relevant income x 5% No contribution is required
Between upper and lower limitsRelevant income x 5%  Relevant income x 5% 
Above upper limit of relevant income Upper limit of relevant income* 5%Upper limit of relevant income *5%

Part-time employees are also entitled to a contribution-free period upon entry and are not required to make contributions for the first 30 days of employment and the first incomplete contribution period thereafter. Take an employee who is paid monthly as an example. If the employee starts his/her job on 20 January, there is no need to deduct 5% from his/her January and February income.  Employers do not have a contribution-free period. You are still required to make part of the employer’s contribution from the first day of employment.  

How to manage the MPF contribution plan for part-time employees is a headache for many retail enterprises. Workstem HRM system supports recording different types of employees (part-time/full-time) and calculating and paying salaries in different salary types (daily/weekly/monthly), which facilitates the calculation of MPF contributions according to employees’ salary records, and generates MPF reports with one click.

(The contents and information in this article are for reference only. The accuracy and reliability of the information are subject to the latest government regulations. We do not represent any legal advice.  If you want to reprint the article or content, please contact us or attach a link to this article, and indicate the source of reprint.)

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