MPF FAQ

1. What are the responsibilities of an employer under MPF regulations?

As an employer, the responsibilities under MPF regulations include:

• Displaying the MPF Participating Certificate which was issued by the MPFA at the principal place of business.
• Informing the trustee of any change of your company's particulars within 30 days from the effective date of change.
• Keeping the pay record of 'relevant income' of a 'relevant employee' (for at least 6 months) and record of the employment date (for at least 6 months after an employee's employment with the employer ceases).
• Keeping remittance statement records (for at least 7 years) and the particulars of a scheme member (at least 6 months after the employee's employment with the employer ceases).
• Enrolling all eligible relevant employees in an MPF Scheme within the first 60 days of employment.
• Submitting remittance statement and make contribution payment for every contribution period on or before the 10th day of the calendar month following the end of the contribution period.
• Providing contribution pay records to all scheme members within 7 working days after payment of contribution.
• Notifying the trustee of the employee who ceased to be employed on or before the 10th day of the calendar month following the employee's last day of employment.

2. What kind of documents will be received by the employer after an MPF scheme enrolment?

A 'Notice of Acceptance' will be received within 30 days from the date of submitting all the information required. A 'Membership Certificate' will also be received from MPFA via the trustee.

3. What kind of documents will an employee receive after an MPF scheme enrolment?

A 'Membership Certificate' will be received within 30 days from the date after submitted all the information required*. Employer needs to deliver the certificate to the employee within 7 working days after the employer receive it.
*The information includes:

• Personal particulars of employee like name, address, contact no, etc
• Investment choice
• Employee's signature and employer's authorized signature

4. Is it necessary to inform the employees of the amount of mandatory contribution made for them?

Yes. According to the regulations, employers need to provide a monthly pay record to each of the scheme members within 7 working days after the mandatory contribution are made. Information on the contribution record should include the employee's relevant income, the amount of contribution and the date payment made to the scheme trustee.

5. What salary items should take into consideration when calculating mandatory contributions?

When calculating mandatory contribution, 'relevant income' should be used. 'Relevant income' includes wage, salary, leave pay, housing allowance and other housing benefit*, fee, commission, bonus, gratuity, perquisite and allowance. However, long service payment / severance payment, payment in lieu of notice and compensation for occupational injuries are excluded.
(*Concerning to the amendment relating to removing the special treatment and excluding housing allowance and other housing benefit from relevant income, it will be effective on 1 Nov, 2008.)

6. How should employer make contribution for each contribution period?

Employer is required to make mandatory contribution payment for regular employees on or before the 'contribution day' (the 10th day after the last day of the contribution period).

7. What should the employer do if any employee ceases employment?

Employer should notify the trustee of the employees who ceased to be employed on or before the 10th day of the calendar month following the employee's last day of employment by submitting the 'Cessation of Employment Notification' to the trustee.
Also, the employer should make the last contribution on or before the 10th day of the calendar month following the employee's last day of employment.

 

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