Info Center

With effect from 1 November 2011, the minimum level of "relevant income" for MPF contributions will be amended from the current level of $5,000 to the new level of $6,500 per month. For the contribution periods (wage periods in general) starting on or after the effective date, employees whose monthly "relevant income" is less than $6,500 will not have to make the employee's contribution, while the employers will still need to make their contribution: 5% of the employee's "relevant income".

Scheme members whose monthly "relevant income" is below $6,500 should note the following:

• If the contribution period starts on the first day of the month, your employer should not deduct 5% from your "relevant income" for the employee's contribution starting from the contribution period of 1 November to 30 November 2011.
  
  
• If the contribution period straddles two calendar months, for instance, from the 20th of one month to the 19th of the following month, the first contribution period in which your employer will stop deducting 5% from your "relevant income" for the employee's contribution is 20 November to 19 December 2011.

For casual employees in MPF Industry Schemes, the daily minimum level of "relevant income" will be revised from $160 to $250 commencing 1 November. In other words, casual employees in MPF Industry Schemes whose daily "relevant income" is less than $250 will not need to make the employee's contribution starting from the effective date, but their employers should still make the employer's 5% contribution for them.

Self-employed persons whose monthly "relevant income" is from $5,000 to less than $6,500 or whose yearly "relevant income" is from $60,000 to less than $78,000 will not be required to make contributions for the contribution periods which start on or after 1 November. Their trustees will update the contribution arrangements accordingly.

To get more information on the new minimum level of "relevant income", please refer to the leaflet produced by the MPFA or visit the Authority website. For enquiries, please call the MPFA hotline at 2918 0102.

The Legislative Council passed a resolution amending the minimum level of "relevant income" in June this year. It is estimated that with this change, an additional 180,900 employees and self-employed persons will be excluded from making mandatory contributions.


- End -


24 October 2011