The monthly minimum relevant income level for Mandatory Provident Fund (MPF) has been increased from the original level of HK$5,000 to HK$6,500.

The amendment will take effect on 1 November 2011.

With effect from 1 November 2011 employees with a monthly relevant income of less than HK$6,500 will not be required to make contributions to an MPF scheme.

So, employees whose monthly relevant income is more than HK$5,000 but less than HK$6,500, will cease to be required to make employees' mandatory contributions to an MPF scheme with effect from next month.

Employers, however, will continue to be obliged to contribute 5% of the relevant income in respect of all employees (other than those who are exempt), including those earning less than HK$6,500 per month.

Employers should take steps to update their payroll systems to reflect this change.

For inquiries related to this Legal Update, please contact Duncan Abate, Hong Tran, Ted Tang or your usual contacts with our firm.

Learn more about our Hong Kong office and Employment & Benefits practice.