28 November 2011
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.
For inquiries related to this Legal Update, please contact Duncan Abate, Ted Tang, or your usual contacts with our firm.
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