Info Center

Press Releases

MPFA’s response to comments about the proposed mechanism for adjusting the relevant income levels

In response to comments on social media on the proposed automatic mechanism for adjusting the minimum and maximum levels of relevant income (Min and Max RI Levels), the Mandatory Provident Fund Schemes Authority (MPFA) would like to clarify the following:

 

  • The proposed automatic mechanism will not mandate an increase of the Max RI level every two years. 
  • Whether to adjust upwards or downwards the Min and Max RI levels will depend on the proposed adjustment benchmarks and other components prescribed under the proposed mechanism. For the Max RI level:
    • The proposed adjustment benchmark would be the 90th percentile earnings of the monthly employment earnings distribution of all employed persons (excluding foreign domestic helpers) aged 18 to 64. The amount would be rounded to the nearest $2,500.
    • The Max RI Level would be adjusted downwards in accordance with the adjustment benchmark. However, every upward adjustment would be subject to a $5,000 limit on the magnitude of the increase.
 
The consultation on the proposal to introduce an automatic mechanism for adjusting the minimum and maximum levels of relevant income will end tomorrow (5 March). The MPFA will collate the views submitted and submit a concrete proposal to the Government.
 
– Ends –

4 March 2015
< Back