What is MPF?
Mandatory Provident Fund Schemes, also known as MPF. It is a retirement protection system launched by the Hong Kong Special Administrative Region Government and implemented in December 2000.
Except for exempted persons, general employees, temporary employees, and self-employed persons aged 18 to under 65 are required to participate in the MPF scheme.
The importance of MPF
The establishment of the MPF system is to save for the retirement life of employed people, and it is an important part of Hong Kong’s retirement protection system.
What is MPF offsetting?
If the employer lays off employees or closes the business and needs to compensate employees for severance pay or long service payment, the employer can withdraw the money from the “accrued benefits” of its MPF contributions and offset part or all of the required payment.
The so-called “accrued benefit” refers to the amount accumulated by the employer after putting 5% of the employee’s income, or a “capped” limit of HK$1,500, into the MPF account each month, including the principal and investment return.
In addition, if the employer makes additional “voluntary contributions” to employees, the accrued benefits of the employer’s voluntary contributions will also be included in the offset amount.
The contribution period is around the corner, how to make contributions to the MPF scheme for different types, different ages, and new employees at the same time?
Through the Workstem Mandatory Provident Fund function module, the system marks the omissions of the MPF plan registration according to the employee’s entry time, closely following the employment regulations, and at the same time, the monthly contribution amount of both employers and employers is included in the salary calculation process;
When backing up information related to insurance benefits, you can also check the complete and detailed employee contribution records in the system, and realize the MPF reports of Manulife MPF, HSBC MPF, BOC MPF, Sunlife MPF, and AIA MPF companies with one-touch export.
Join Workstem now, get rid of a series of MPF Hong Kong calculation problems caused by too many employees and messy information, and let the focus return to business.