F. Mandatory Provident Fund (MPF)
The MPF, which is an employment-based retirement protection system, has been implemented on 1 December 2000 through the Mandatory Provident Fund Schemes Ordinance (Cap. 485 of the Laws of Hong Kong). Employees (with the exceptions of some domestic employees, hawkers or those covered by existing occupational retirement schemes with exemption certificates, etc.) between the age of 18 and 65 are required to join MPF schemes.
However, it does not mean that an employee or a self-employed person who is under the age of 18 is exempt from MPF.
If an employer enters into a contract of employment with an employee who is less than 18 and the employee reaches 18 on or after 18 January 2008; and the employer continues to employ the employee after he reaches 18, the Ordinance applies as if they had entered into contract of employment on the day on which the employee reaches 18 and the employment had begun or commenced on that day.
The same applies for self-employed person when he becomes self-employed before he is 18 who reaches 18 on or after 18 January 2008 and continues to be self-employed, the Ordinance applies to him as if he had become self-employed on the day on which he reaches 18.
MPF is generally mandatory for employers and self-employed persons. It is the statutory obligation of employers to join the scheme to cover their employees and any self-employed persons to join the scheme to cover themselves. Failure to do so would subject them to criminal liability.
- My employer has not made any MPF contribution or contribution to other retirement scheme for me since the beginning of my employment. Has he violated the law?
- Can employers reduce their employees' benefits or change the terms of employment contracts to evade liabilities under the Mandatory Provident Fund Schemes?
- Can employers re-engage their employees under new contracts as self-employed persons in face of the implementation of the Mandatory Provident Fund Schemes to reduce the employees' benefits that are payable under the Employment Ordinance and other labour legislation?
For more information regarding MPF matters, please visit the website of the Mandatory Provident Fund Schemes Authority .