Information Centre

As an employer, enrolling your employees in an MPF scheme and making MPF contributions punctually are important obligations.  It is equally important to inform your MPF trustee about the departure of employees and the subsequent non-payment of MPF contributions for them. Failure to do so may be regarded by the trustee as default contributions.

An employer should arrange for the last payment of a departing employee’s contributions to be made on or before the next contribution day (i.e. the 10th day of the following month).     

What should the employer do to notify the trustee? An employer can notify the trustee of an employee’s cessation of employment in writing or by making use of the remittance statement. After filling in the necessary information, such as the employee’s name and the last day of the employment, the remittance statement, together with the final contribution, have to be submitted to the trustee.  Some trustees may provide standard forms for reporting changes.  Employers may contact their trustee for more information. Any employer who fails to notify the trustee of an employee’s cessation of employment is liable to a maximum fine of $20,000.

After the employee has left the company, the employer is still required to retain proper records of certain information, such as the employee’s name, address and first date of employment, for a period of at least six months following the date of the employee’s departure.

To avoid being considered to have defaulted on MPF contributions, employers should observe the MPF administrative requirements, make MPF contributions for employees on time, and handle MPF matters appropriately for terminated employees.