Except for some exempt persons, for full-time and part-time employees aged 18 but under 65, regardless of hours worked per week, employers should enrol MPF scheme for such employees within the first 60 days of employment.
For casual employees engaged in the catering/construction industry under MPF industry schemes, even if the employee is employed for only one day, the employer should register for the MPF scheme accordingly.
The importance of MPF contribution
Arranging MPF contributions for employees is an important and daily task.
In the daily operation, HR or employers need to check whether they enrol MPF schemes for employees within the prescribed time and ensure that each contribution can be accurate and submitted on time to avoid errors or delays or even prosecution.
MPF Contribution notice for employers
Employees and employers are both required to make mandatory contributions of 5% of the employee’s relevant income into the employee’s MPF account, subject to the minimum and maximum relevant income levels.
Employers must make mandatory contributions for their employees with their own funds. They must also deduct the employee’s contributions from his/her relevant income for each contribution period (generally the wage period).
For monthly paid employees, the current minimum and maximum relevant income levels are HK$7,100 and HK$30,000 respectively.
If an employee is paid daily, weekly or bi-monthly, the employer must first calculate the minimum and maximum relevant income levels of the wage period based on the daily minimum and maximum relevant income levels of HK$280 and HK$1,000. The contributions to be made should be determined as follows:
Confused about MPF calculations? This article may help a lot: The most used Hong Kong MPF calculation formula
The contribution period is approaching, how to make contributions for different types, different ages and new employees at the same time?
Through the Workstem MPF module, the system marks the omissions of the MPF scheme enrollment according to the employee’s join date, at the same time, the monthly contributions of both employers and employers will be calculated in the payroll in compliance with the Employment Ordinance;
When backing up information related to insurance benefits, you can also check the complete and detailed employee contribution records in the system, and export MPF remittance statements of Manulife Financial, HSBC, Bank of China-Prudential, Sun Life Financial and AIA with one click.
Join Workstem now, say goodbye to MPF calculation problems caused by too many employees and messy information, and focus on your business more.