Info Center

The Mandatory Provident Fund Schemes Authority (MPFA) today (July 25) reminds self-employed persons of their obligation to register in the MPF schemes before December 1, 2000.

Like employees, self-employed persons have to contribute 5% of their relevant income as mandatory contributions. The relevant income is subject to a maximum of $20,000 a month and a minimum of $4,000 a month. Hence, self-employed persons earning more than $4,000 a month or $48,000 a year are required to contribute to registered MPF schemes.

Mandatory contributions can be made either on a monthly or a yearly basis.

Typical examples of self-employed persons include doctors, lawyers, agents, professional drivers, sole proprietors and partners running their businesses in Hong Kong.

MPFA Executive Director Dr Ernest Lee said, "Self-employed persons who choose to contribute on a yearly basis should pay their contributions to scheme trustees by the end of each financial year of the schemes. If they choose to contribute on a monthly basis, they should specify to their trustees a date in a month as their contribution day."

On calculation of relevant income, Dr Lee added, "Self-employed persons can use the assessable profits calculated in accordance with the Inland Revenue Ordinance as a basis for making yearly contributions."

"Should mandatory contributions be made on a monthly basis, a self-employed person can simply divide his or her relevant income by 12 to arrive at a monthly relevant income."

Representatives of the Motor Transport Workers General Union today met with Dr Lee to discuss issues related to mandatory contributions for professional drivers. In the meeting, he called on drivers to register in a MPF scheme.

Public enquiries can be made to the MPFA hotline 2918 0102 or the MPFA website at https://www.mpfa.org.hk/ which also contains information on mandatory contributions of self-employed persons, as well as other aspects of the MPF System.

– Ends –

25 July 2000