3. What are the statutory amounts or percentages of income for mandatory contributions under MPF schemes?
In the case of employees, the mandatory contribution to be made respectively by the employees and their employer is a sum equal to 5 percent of the employee's monthly wage. For the calculation of mandatory contribution, the monthly wage is subject to a maximum amount of $25,000 per month. However, an employee whose monthly wage is less than $6,500 is not required to make the mandatory contribution.
For self-employed persons, the mandatory contribution is 5 percent of the person's monthly earnings (subject to a maximum level of income of $25,000 per month or $300,000 per year). Similar to the case of employees, a self-employed person whose monthly income is less than $6,500 is not required to make mandatory contributions.
In the case of casual workers who are members of an industry scheme, the authority publishes the required percentage of contribution. Please also note that these casual employees are not required to make mandatory contributions if their daily income is less than $250.
In addition to the mandatory contributions, employees or self-employed persons can also make voluntary contributions to their MPF schemes. For guidelines regarding voluntary contributions, you should check with your scheme providers.