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The Mandatory Provident Fund Schemes Authority (MPFA) has issued a set of guidelines on relevant income to help employees and employers better understand how to calculate their share of MPF contribution.

Under the Guidelines, relevant income includes wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance, paid by an employer directly or indirectly to an employee under a contract.

Housing allowance, housing benefit, severance payments or long service payments do not fall into the definition of relevant income.

Speaking at a seminar today (July 19), MPFA Executive Director Dr Ernest Lee said, "If an employee holds more than one employment, the employer of each of his employment is required to enroll him in a registered scheme and make mandatory contributions for him in respect of the employment contract."

Dr Lee called on employers to compare different MPF schemes available in the market as soon as possible, to allow adequate time to consult the employees and enroll them.

He added that the issuance of the Guidelines is timely with the Mandatory Provident Fund System set for launch on December 1 this year.

Public are encouraged to call MPFA hotline 2918 0102 for any enquiries regarding relevant income and other aspects of the MPF System. The Guidelines can also be downloaded from the MPFA website at www.mpfahk.org.

As of June 30, 2000, 44,250 employers and 29,158 self-employed persons have enrolled in relevant MPF schemes.

The introduction of the MPF System in December marks the provision of a retirement protection system for the entire workforce.

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19 July 2000