MPF Scheme Contribution Calculation? Calculation methods for different ages and different employment periods

Many employers do not know how to calculate mandatory contributions to a Mandatory Provident Fund Scheme (MPF). Mandatory contributions to the Mandatory Provident Fund Scheme (MPF) are made if the employee is employed for 60 days, regardless of whether the employee relationship is part-time or full-time. What is the specific contribution calculation method? Is there any difference between different age groups, leaving/employment? This article will organize them one by one:

What is the Mandatory Provident Fund (MPF) contribution amount?

In summary, regardless of the number of working hours for full-time/part-time employees, as long as they are between the ages of 18 and 64 and have been employed for 60 days, they are required to participate in a Mandatory Provident Fund Scheme (MPF).

Mandatory Provident Fund Schemes (MPF) are generally divided into mandatory contributions and voluntary contributions/tax-deductible voluntary contributions. The contribution date can be selected monthly or annually. Mandatory provident fund scheme (MPF), regardless of employers, employees or self-employed persons, is 5% of the relevant income, with upper and lower limits:

If the employee’s monthly relevant income is more than HK$30,000, the maximum mandatory contribution will be HK$1,500; on the contrary, if the employee’s monthly relevant income is below HK$7,100, he is not required to make mandatory MPF contributions payment.

3. As for voluntary contributions to the Mandatory Provident Fund Scheme (MPF), employees, employers and self-employed persons can make voluntary contributions in the following ways:

– Employees can make voluntary contributions to their existing employer’s Mandatory Provident Fund (MPF) scheme contribution account;

– Participating in a Mandatory Provident Fund (MPF) scheme with tax deductible voluntary contributions;

– Participate in a special voluntary Contribution Mandatory Provident Fund (MPF).

Mandatory Provident Fund Scheme (MPF) contributions are calculated:

1. The employee has been employed for 60 days:

Employees need to contribute: their contribution amount is 5% of the relevant interest in the current month;

Employers need to make contributions: the contribution amount is 5% of the relevant interest for the current month. If the employee has just been employed for 60 days, 5% of the relevant income of the previous month needs to be added.

2. The employee has been employed for less than 60 days:

Employees are not required to contribute to the scheme;

Employers are not required to contribute to the plan.

3. Employees under the age of 18 / employed for less than 60 days:

Employees are not required to contribute to the scheme;

Employers are not required to contribute to the plan.

4. The employee is over 18 years old and employed for 60 days:

60 days after the employee reaches the age of 18, contributions to the plan are required, and the contribution amount is 5% of the relevant interest for the month.

60 days after the employee turns 18, he or she needs to make contributions to the plan, and the employer also needs to make up the contribution for the month just turned.

5. The employee is over 65 years old:

Employees are required to contribute to the plan. If the employer has just turned 65 years old, it will be calculated based on the number of working days; if they leave the company within the next month, the same will be calculated based on the number of working days.

Employers are required to make contributions to the plan. If the employer has just turned 65 years old, it will be calculated based on the number of working days; if the employer leaves the company within one month, the same will be calculated based on the number of working days.

If the employee relationship of a part-time employee has been established for 60 days, in addition to arranging to enroll in the MPF scheme, the employer must make up the contributions for the first 60 days; on the contrary, if the employee leaves the part-time employee within 60 days, the employer does not need to make a mandatory payment. Provident fund contributions.

The above information is for reference only. If you have any questions about tax declaration and accounting, we welcome your inquiries.