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July 2017

Employers' defaulting on MPF contributions is an offence

The Mandatory Provident Fund Schemes Authority (MPFA) attaches great importance to protecting scheme members’ rights and proactively follows up suspected cases of employers defaulting on Mandatory Provident Fund (MPF) contributions in arrears. Civil action will be taken to pursue employers for outstanding contributions and surcharges if there is sufficient evidence. Prosecution may also be initiated against the employers.


It is an offence for an employer to default on MPF contributions. Employers who commit this offence are subject to a maximum penalty of a $450,000 fine and four years’ imprisonment. In July 2017, a company director was sentenced to 21 days’ imprisonment for failing to comply with court orders to pay MPF contributions in arrears and surcharges for the company’s employees to the MPFA. This is the first case in which a company director was sentenced to imprisonment for defaulting on MPF contributions.


If employees suspect their employers have failed to enrol them in an MPF scheme or make contributions, they should contact the MPFA as soon as possible to lodge a complaint.