Info Center

MPFA Chairman Mrs Ayesha Macpherson Lau today (26 September) published her latest blog post, reiterating that the MPF is an employment-based mandatory provident fund contribution system, which is designed to help the working population prepare for retirement protection through regular contributions jointly by employers and employees. The MPFA encourages MPF scheme members to make voluntary contributions (VCs) in addition to mandatory contributions to increase their retirement savings. To further strengthen the retirement protection of the working population, it is important to have employers’ unfailing support. 

Mrs Lau mentioned that with MPFA’s sustained promotion efforts, the amount of VCs increased continuously from $2.3 billion in 2004 to $14.1 billion in 2020. In the first half of 2021, the amount of VCs exceeded $7.5 billion, and in the second quarter of 2021, they reached a record $3.8 billion (see Figure 1). In recent years, both the number of employers making VCs and the amount of VCs have increased. In 2020, almost 20,000 employers made VCs for more than 390,000 employees for an aggregate amount of $12.5 billion, increased by 11% from $11.2 billion in 2019 (see Figure 2), showing that more and more employers are willing to make extra efforts to enhance the retirement protection of their employees. 

During her recent visits to the Chinese General Chamber of Commerce and the Chinese Manufacturers' Association of Hong Kong earlier this month, Mrs Lau learnt that in spite of the adverse impact of the COVID-19 pandemic on the businesses, many employers are still keen to maintain or even do more to enhance the benefits package for their employees during this difficult time. Both chambers also agreed with the MPFA that employers have important roles to play in enhancing the retirement protection of their employees by providing VCs. This coincides with the objective of the Good MPF Employer Award (GMEA) programme, launched by the MPFA in 2015, which encourages employers to provide better retirement protection for their employees, including making VCs. Since the inception of the GMEA, almost 2,500 good employers have been recognized. 

On another note, Mrs Lau pointed out that the MPFA issued over 300,000 payment notices in respect of late or default MPF contributions, resulting in a total of $70 million in surcharges paid by the delinquent employers. One of the reasons for employers having late contributions is believed to be over-reliance on manual, paper-based procedures for handling MPF contributions.

Mrs Lau said that once the eMPF Platform, currently under construction, comes into operation, employers will be able to manage their employees’ MPF completely by electronic means, including MPF scheme enrolment and contributions, and submission of documents and information. The eMPF Platform will significantly simplify the current MPF administrative procedures, helping employers avoid late contributions caused by manual errors, and enhancing operational efficiency while reducing administrative costs. In anticipation of the eMPF Platform era, Mrs Lau called on employers to go digital as soon as possible in handling MPF matters.

For the full version of the article, please visit the MPFA blog. The blog is in Chinese only.

Figure 1

Figure 2

(Front row, 4^th from left) Mrs Ayesha Macpherson Lau

(Left) Mrs Ayesha Macpherson Lau

MPFA Chairman Mrs Ayesha Macpherson Lau visited the Chinese General Chamber of Commerce (above) and the Chinese Manufacturers' Association of Hong Kong (below) to exchange views on recent developments of the MPF System.

－Ends－

26 September 2021