Do I have to enrol staff in MPF scheme Hong Kong

Enrol Staff in MPF Scheme Hong Kong: Is It a Legal Requirement?

Yes. Most Hong Kong employers must enrol staff in an MPF scheme. Enrol every employee aged 18 to 65 under a continuous contract in a registered mandatory provident fund scheme, unless an exemption applies.

Is MPF Mandatory in Hong Kong?

The Mandatory Provident Fund Schemes Ordinance (Cap. 485) makes employer participation mandatory. The Mandatory Provident Fund Schemes Authority (MPFA) oversees compliance. Both employer and employee must make regular contributions. Failure to enrol an eligible employee or to make contributions on time incurs penalties, from a surcharge to prosecution.

Hong Kong MPF Enrolment Requirements

Assess every new employee against the enrolment criteria. Enrol employees who:

• Are aged 18 to 64 (employees aged 65 or above need not contribute, though the employer may do so voluntarily).
• Are under a "continuous contract" as defined by the Employment Ordinance (Cap. 57). This means employment for four weeks or more, working at least 18 hours weekly (the 4-18 rule).
• Are not covered by an exemption.

Exempt employees include those covered by an overseas retirement scheme, domestic helpers, and certain casual employees.

MPF Scheme Enrolment Deadline HK

Enrol a new eligible employee within the first 60 days of employment. Choose a registered MPF scheme and provide the employee with the scheme documentation. The employee completes the enrolment form and returns it to you for submission to the scheme trustee. If the employee does not make a selection, you must still enrol them in the scheme's default investment strategy.

Mandatory Provident Fund Employer Obligations

Your obligations are clear.

• Choosing an MPF scheme: Select a master trust scheme, an industry scheme, or a company-sponsored scheme.
• Making contributions: Both employer and employee contribute 5% of the employee's "relevant income" (wages, salary, commissions, bonuses, and tips).
• Capped and minimum contributions: The mandatory employer contribution is 5% of relevant income, capped at HK$1,500 per month (5% of HK$30,000). No employee contribution is required when monthly relevant income is below HK$7,100. You must still contribute for employees earning below this threshold.
• Reporting and filing: Provide the MPF trustee with contribution records and remit contributions on or before the contribution day, usually the 10th of each month for monthly-paid employees.

What Happens If You Fail to Enrol?

The MPFA can impose a 5% surcharge on outstanding contributions and a penalty of up to HK$10,000 per breach. For serious or persistent non-compliance, directors and officers may be held personally liable, facing fines or imprisonment.

Next Steps

• Confirm each employee is under a continuous contract and aged 18 to 64.
• Enrol the employee in an MPF scheme within 60 days of their start date.
• Calculate and remit contributions monthly.
• Keep records of contributions and enrolment for at least seven years.

If you are unsure whether an exemption applies or need help selecting a suitable MPF scheme, consult a licensed corporate service provider or an MPF specialist.