Following the amendment of the minimum level of monthly relevant income for Mandatory Provident Fund (MPF) contributions that took effect on 1 November 2013, there is an upcoming change in the MPF requirement.
With effect from 1 June 2014, employers and employees will need to contribute more than they do at present for MPF as the Mandatory Provident Fund Schemes Authority (MPFA) announced to increase the maximum monthly relevant income figure from HK$25,000 to HK$30,000. This will raise the existing cap on monthly MPF contributions from HK$1,250 to HK$1,500 (Table 1).
Employers are advised to apply the new maximum level of monthly relevant income in calculating MPF contributions for employees for contribution periods beginning on or after 1 June 2014. Failure to do so may result in default contributions and the MPFA may impose a surcharge on outstanding contributions.
Employers are also reminded to share the above amendment with employees and make sure they are fully aware of the new levels of relevant income, particularly employees whose relevant income exceeds HK$25,000 per month, as their mandatory contributions will increase.
Meanwhile, employers who have established MPF schemes with voluntary contributions are recommended to review their agreements with their MPF service providers, in order to avoid possible disputes arising from ambiguities in definitions of the basis for MPF voluntary participation.