Hong Kong MPF Contribution Guidelines

1. The way to set up an MPF account?
Organising an MPF account is a simple process. Hong Kong’s Mandatory Provident Fund Schemes Creatority (“MPFA”) maintains a list of MPF Approved Trustees which employers might consider. As an example, the HSBC MPF plan provides people with a wide variety of funding schemes akin to those centered more on world bonds, Hong Kong and Chinese equities and so on. Merely contact your chosen MPF providers and complete the relevant employer application kinds for the scheme of your choice. As soon as an employer has successfully enrolled in an MPF scheme, they will be issued an employer’s identification number, demonstrating your obligation to help your employees of their retirement schemes.

.
2. What are an employers’ obligations under the Hong Kong MPF rules?
Employers must additionally full the one-time obligation of assisting their workers in opening MPF accounts. Except for exempt individuals, an employer should enroll each full-time and part-time workers who’re at the least 18 however under 65 years of age in an MPF scheme within the primary 60 days of their employment. Nevertheless, if an employment relationship ends prior to the 60th day of employment, no MPF arrangement is required.

Upon successful enrollment, employers must meet ongoing obligations of remitting contributions to their staff MPF schemes once each contribution period. Contributions for month-to-month-paid full-time staff are typically made on the tenth day of every month.

Employers and workers are each required to make common necessary contributions to an employees MPF scheme. The MPF employee contribution and MPF employer contribution should each be 5% of the employee’s related earnings, topic to relevant revenue levels. For a month-to-month-paid worker, the minimum and maximum relevant earnings ranges are $7,one hundred and $30,000 respectively.

To make payments to their staff, employers are required to calculate their worker’s related income and the amount of mandatory contribution that have to be made for each contribution period. The employer should then deduct the calculated quantity from their employee’s earnings and remit that sum to their MPF account.

3. What are the worker contribution guidelines under the Hong Kong MPF rules?
Workers don’t face as many compliance obligations as their employers do. Nonetheless, it is vital for workers to ensure that they make the common obligatory contribution of 5% of their related income to their related scheme as talked about above.

4. Are there exemptions under a Hong Kong MPF contribution guidelines?
Not all employees working in Hong Kong should be enrolled under an MPF scheme. Expatriates residing in Hong Kong for employment purposes can get hold of permission to be exempted by the Hong Kong Government. Permission can only be granted if the worker in query is either a member of an abroad retirement scheme, or will reside in Hong Kong for a interval of 13 months or less.

5. Penalty
Within the occasion an employer fails to adright here to their MPF obligations, the MPFA will situation the employer with a “surcharge notice”. This discover will impose a 5% surcharge on default contributions and the surcharge obtained will go completely to the employee’s MPF account. In addition, defaulting on contributions is a criminal offence and the defaulter is liable to a maximum penalty of a HK$450,000 fine and imprisonment for four years. Employers who have did not comply with their MPF employer obligations are liable to potential monetary penalties of HK$5,000, or 10% of the default quantity, whichever is greater, on the defaulting employer.

Conclusion
We understand that matters referring to MPF calculation and payroll administration are time-consuming tasks that require a significant quantity of the corporate’s resources. FastLane can manage these essential enterprise tasks, equivalent to payroll, MPF account setup and your employee’s enrollment into your chosen MPF scheme in your behalf.

If you have any questions pertaining to exactly where and how to use MPF calculator, you can make contact with us at our own web page.

Leave a Reply

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