The Mandatory Provident Fund Scheme (referred to as MPF for short) was officially implemented by the Hong Kong Government on 65438+February 1 2000. Except for a few people who are exempted, all employees in Hong Kong 18 to 65 years old must join the MPF scheme, and both employers and employees must contribute to set up a fund.
After the implementation of the MPF, the rate of return is not satisfactory, and even it has recorded losses for several years, and it has been questioned that the administrative expenses are high, and financial institutions as intermediaries have become the biggest beneficiaries. The Mandatory Provident Fund Scheme also enables employers to save severance pay and has negative comments on the helplessness of the elderly.
According to the MPF system, employees and employers are required to inject 5% or more of employees' income into the MPF trustee at the minimum and maximum income levels respectively, and self-employed persons are also required to make mandatory contributions at the minimum of 5% of their personal income. The minimum relevant income level for MPF contributions is HK$ 7 100 per month. For employees with a monthly salary of over $30,000, the mandatory contribution ceiling for employers and employees is $65,438+$0,500, and the contribution ceiling for self-employed people is $300,000 per year. Employees can transfer their accumulated benefits to another plan once a year. Generally speaking, accrued benefits can only be withdrawn when plan members reach the retirement age of 65. However, due to the death, incapacity, permanent departure from Hong Kong and early retirement of scheme members, they can be paid before retirement age.
Revised summary
In February 2003, the minimum relevant income level of MPF contributions was raised from HK$ 4,000 to HK$ 5,000 per month. From 20111,from 5000 yuan to 6500 Hong Kong dollars.
On 2011165438+1October 23rd, the upper limit of the contribution of the relevant income of the MPF was revised. With effect from June 1 20 12, the upper limit of relevant income contributions to the MPF will be raised from HK$ 20,000 to HK$ 25,000. At the same time, the ceiling of monthly and annual income contributions for self-employed persons will be raised to HK$ 25,000 and HK$ 300,000 respectively. At the same time, the daily relevant income contribution ceiling for temporary employees who are employed on a daily basis or whose employment period is less than 60 days will also take effect, and will be raised from 650 yuan to 830 yuan.
Starting from 20 1 2165438+10/0, the employee's optional arrangement (semi-free MPF) will be implemented, and employees can choose to transfer the accrued benefits arising from the compulsory contributions during their current employment period to their optional trustee and MPF scheme once every calendar year.
From 201110/0, the minimum relevant income level for MPF contributions has been revised from HK$ 6 per month to HK$ 7,000 per month in 500 yuan.
Individuals or certain categories of people and their employers are exempted from the MPF requirements of the MPF Ordinance, including: civil servants, judicial officers and subsidized schools or subsidized school teachers who are protected by statutory retirement schemes or provident fund schemes and enjoy pension benefits; Members of occupational retirement schemes regulated by the Occupational Retirement Schemes Ordinance (Chapter 106). However, the relevant schemes must be exempted from the requirements of the MPF Schemes (Exemption) Regulation (Cap. 125). 485 b)； Overseas people who are employed or self-employed in Hong Kong have worked in Hong Kong for no more than 13 months; Or have participated in a retirement scheme established outside Hong Kong; Employees of the Hong Kong Office of the European Union in Council of Europe; Domestic workers; And self-employed vendors.
In order to protect employees' rights and interests under the MPF system, MPFA has taken a number of practical enforcement measures to deal with employers who violate the regulations. According to the MPF legislation, if an employer defaults on his employees' MPF contributions, he has to pay a surcharge equivalent to 5% of the arrears, and the surcharge collected will be deposited into the employees' MPF accounts. After MPFA has completed the investigation on the cases of arrears of payment and surcharge by the employer, it can file a civil claim against the employer with sufficient evidence. According to the MPF legislation, MPFA has the right to impose a fine of $5,000 or 65,438+00% of unpaid contributions on the employer. If there is sufficient evidence, MPFA can prosecute employers who fail to participate in MPF schemes or default in making MPF contributions for their employees. Upon conviction, the offending employer may be fined and imprisoned.