No Need to Enrol Employees in an MPF Scheme if They Are Employed Less Than 60 Days?

Employers in all industries should enrol their regular employees in an MPF scheme within the first 60 days of employment. If you have full-time employees, of course, you can not escape from enroling them in the MPF scheme.

But what about part-time employees?

It is inevitable that employers will try to search for “grey areas”, for example, signing a series of short-term employment contracts of less than 60 days with employees so as not to make MPF contributions for them.

According to Mandatory Provident Fund Schemes Authority (MPFA), despite the fact that the employment period of each employment contract is less than 60 days, if there is evidence that an employment relationship between you and your employees exists for 60 days or more, you are still required to enrol your employees in an MPF scheme.

Therefore, it is illegal for employers to purposely sign an employment contract with an employee for less than 60 days in order to avoid MPF contributions.

Some employers may ask that if employees do not want to join MPF means they don’t have to enrol them in an MPF scheme? Is it possible? Because that’s what employees want, and employers do not want to make contributions either.

It is clearly written in the law that an employer has the legal obligation to enrol employees into an MPF scheme. Mutual agreement between you and your employee, or even a request proactively raised by your employee to do without MPF, does not override your obligation to enrol them.

That is to say, employers still need to enrol employees who fulfill the MPF requirements in an MPF scheme.

When to register MPF for employees? When will contributions start for employees? Which employee needs to calculate contributions based on the lowest / highest relevant income? The MPF function of Workstem will remind you which employee has not been enroled in an MPF scheme and can automatically calculate the contribution amount according to their join date. It is in full compliance with the requirements of the MPFA and the labor law.

Read More:

Non-“418”-rule Employees No Need to Enrol MPF Scheme?
Employer’s Ultimate Guide to MPF

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