The maximum level of monthly relevant income for Mandatory Provident Fund (MPF) will be increased from the original level of HK$20,000 to HK$25,000. The maximum level of daily relevant income will be increased from HK$650 to HK$830.
The amendment will take effect on 1 June 2012.
This follows an earlier amendment which saw the increase of minimum level of relevant income from HK$5,000 to HK$6,500, and is the first time the income ceiling has been amended since the MPF commenced in December 2000.
Employees whose monthly relevant income exceeds HK$20,000 and their employers will need to pay more contributions to their MPF schemes after the amendment, with the maximum contribution effectively capped at HK$1,250 per month, i.e. HK$250 higher than present.
Employers should take steps to update their payroll systems to reflect this change.
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