When do I need to register an employee with a Mandatory Provident Fund (MPF)? Enrolment Procedures for Mandatory Provident Fund (MPF) Schemes

In Hong Kong, employers and employees from all walks of life are generally protected by the Mandatory Provident Fund (MPF) scheme. However, many start-up employers or new employees are not sure when they need to register for the MPF scheme. If you feel puzzled and do not know how to start, this article will detail the relevant procedures for employers to enrol their employees in a Mandatory Provident Fund (MPF) scheme.

Which employees are required to join the Mandatory Provident Fund (MPF) scheme?

According to the current MPF Ordinance, basically all employed persons in Hong Kong from the age of 18 to 65 are required to participate in the Mandatory Provident Fund (MPF) scheme. Except for individual exempted persons, general employees are jointly contributed by both employers and employees, as mandatory savings before retirement.

Both general and casual employees are required to participate in the Mandatory Provident Fund (MPF) scheme:

• General employees: full-time or part-time employees (regardless of hours worked) between the ages of 18 and 64 who have been employed for 60 calendar days

• Temporary employees: Short-term employees in the catering industry or construction industry who are employed on a daily basis or whose employment period is less than 60 calendar days are required to enrol in the Mandatory Provident Fund (MPF) scheme for one day of employment.

• Summer job: Those who have been employed for 60 calendar days and meet the above requirements are also required to join the Mandatory Provident Fund (MPF) scheme.

Mandatory Provident Fund (MPF) Scheme Exempted Persons:

• Hawkers;

• domestic workers (foreign domestic helpers);

• Persons who come to Hong Kong for employment and are covered by overseas retirement schemes;

• Employees of the European Commission Office of the European Union in Hong Kong;

• Members of occupational retirement schemes that have been issued a Mandatory Provident Fund (MPF) exemption certificate;

• Persons who entered Hong Kong for employment and were permitted to remain in Hong Kong for a period not exceeding 13 months;

• Persons covered by statutory pension schemes or provident fund schemes (eg civil servants and teachers in subsidised or subsidised schools).

When should I start registering my employees with the Mandatory Provident Fund (MPF)?

According to the MPFA’s relevant guidelines for Mandatory Provident Fund (MPF) schemes, the employer must enrol the employee in a Mandatory Provident Fund (MPF) scheme within 60 calendar days after the employee’s employment.

Regardless of the length of the probationary period (three months or half a year), even if the employee fails to pass the probationary period, the employer must still arrange to enrol in the Mandatory Provident Fund (MPF) scheme within 60 calendar days. It is very likely that you will violate the law by exceeding the deadline for registration.

Procedures for employers to enrol their employees in a Mandatory Provident Fund (MPF) scheme

Step 1: When an employee enters a job, the employer should submit the form for registration of the MPF scheme for the employee to fill out as soon as possible, so as to provide the employee with the information of the MPF scheme selected by the employer for reference;

Step 2: Employers are responsible for reminding employees to fill in personal information and investment options, and employees need to sign the form;

Step 3: The employer needs to submit the completed form to the MPF scheme trustee within the deadline for opening an MPF ​​account.

Step 4: When the MPF scheme trustee receives and completes the application, the employer should also fulfil its duty to notify the employee.

The above information is for reference only. If you have any questions about labour law, accounting, Mandatory Provident Fund (MPF), we welcome your enquiries.