Non-“418”-Rule Employees No Need to Enrol MPF Scheme?

Non-“418”-Rule Employees No Need to Enrol MPF Scheme?

Recently, many employers inquired about whether they should arrange MPF enrolment for their interns, summer interns and part-time employees who do not fulfil the “418” rule under the Employment Ordinance(EO). Under the EO, an employee who has been employed continuously by the same employer for four weeks or more, with at least 18 hours worked in each week, is regarded as being employed under a “continuous contract”, which is also called “418” rule. In this case, can employers not arrange MPF enrolment for these employees?

💡 MPF enrolment, however, is not subject to the “418” rule.

MPF enrolment ≠ “418” rule

For regular employees, no matter how many hours of work your employees perform in a week, as long as they are at least 18 but under 65 years of age and have been employed for 60 days or more, you are required to enrol them into an MPF scheme within the first 60 days of employment and make contributions on time. The first 60 days do not refer to actual working days or working hours, but are calculated based on calendar days.

For example, Stephen joined the company on June 1, 2020, which was the first day of work, and he worked on Monday and Tuesday. The first 60 days of employment would be July 30, 2020. Even though he only worked for 18 days, his employer must arrange MPF enrolment for Stephen on or before July 30.

If Stephen’s monthly salary is less than HK$7,100, he does not need to make any contribution. However, the employer must make mandatory contributions to him, the contribution amount is 5% of the relevant income.

Register MPF

Make the first-time contribution for the new employees based on their join date and relevant income. Workstem’s MPF function can automatically calculate the amount of MPF contribution of all employees based on their join date and salary, and add it into the net pay. No matter if it is mandatory contributions or voluntary contributions, you can one-click calculate and export the MPF report!

MPF and autopay reports

(The content and information in this article are for reference only. The accuracy and reliability of the information are subject to the latest government regulations. If you want to reprint the article or content, please contact us first or attach a link to this article, and indicate the source of reprint.)

Related Posts

[418 Guide] Ordinance 418 And Continuous Contract
[418 Guide] Ordinance 418 And Continuous Contract
What is 418? According to the “Employment Ordinance”, an employee who has been employed continuously by the same employer for four weeks or more, ...
Read More
Say Goodbye to IR56 Forms Preparation Tool! HR System Assists Your Tax Filing Season
Say Goodbye to IR56 Forms Preparation Tool! HR System Assists Your Tax Filing Season
The tax season is coming. Many employers use IR56 forms preparation tool to prepare the annual IR56B or IR56F, but the variety of tax forms and the...
Read More
Sick Leave Certificate & Allowance Hong Kong
Sick Leave Certificate & Allowance Hong Kong
While some employers would grant leave to employees without a certificate, the “Employment Ordinance” clearly states that an employee must have a s...
Read More

Leave a Reply

Your email address will not be published. Required fields are marked *