Another MPF question (did a search)

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  1. #1

    Another MPF question (did a search)

    ok i did some search on the forum and didn't really see the information i was looking for on MPF.

    here's my understanding of HK's MPF: employees must contribute at least $1000HKD/month to the MPF but maximum is 5% of one's salary. my company tells me that they will match, dollar for dollar the contribution i put in. so if i made HKD$100,000 per month, i THINK i can sock away HKD$5000 and my company will match that so my total deposit into the MPF would be HKD$10000.

    does that sound right?


  2. #2

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    I did a search - here is the MPF website with all the information you need

    MPFA Contributions

    There is a "maximum salary" limit of HKD20,000 per month.

    Last edited by Flat Hunter; 04-10-2008 at 08:08 AM.

  3. #3

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    Make sure you read your company's small print. Mine is subject to a vesting scale, which was a new thing on me. It's their way of retaining you.

    At the end of the 1st year, I am only entitled to 10% of the value of my company's contributions; 20% at the end of the 2nd; and so on. So, by the end of the 10th year, I am entitled all of whatever my company has put in is worth.


  4. #4

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    Quote Originally Posted by tinlissie:
    Make sure you read your company's small print. Mine is subject to a vesting scale, which was a new thing on me. It's their way of retaining you.

    At the end of the 1st year, I am only entitled to 10% of the value of my company's contributions; 20% at the end of the 2nd; and so on. So, by the end of the 10th year, I am entitled all of whatever my company has put in is worth.
    This seems to me to be against the rules - once the money's in the MPF it's yours. MPFA Rights Obligations & Benefits
    From which:
    Full and Immediate Vesting

    In general, once your employer remits your and your employer's joint mandatory contributions to the scheme trustees, the contributions will be fully and immediately vested in you.
    The only exception I can see is that is that they can offset Mandatory Severance and Lond Service Payments: MPFA Offsetting of Severance and Long Service Payments

    You might want to send a copy of your contract to the Labour Department to get their view on its legality.

  5. #5

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    Quote Originally Posted by casualsurfer:
    here's my understanding of HK's MPF: employees must contribute at least $1000HKD/month to the MPF but maximum is 5% of one's salary. my company tells me that they will match, dollar for dollar the contribution i put in. so if i made HKD$100,000 per month, i THINK i can sock away HKD$5000 and my company will match that so my total deposit into the MPF would be HKD$10000.

    does that sound right?
    No it doesn't, you must each contribute 5% up to a maximum of HK$1000 per month. You can contribute more if you wish, but unless you have a very unusual arrangement with your employer there is no obligation on the employer to match it.

  6. #6

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    Sorry, I should have been more explicit.

    I am entitled to the full amount of my employer's mandatory contributions straight away but the additional contributions that my employer makes are subject to the vesting rules.


  7. #7

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    Interesting...

    I've never come across this employers matching any amount of contributions before. I'd be putting 50%+ of my salary into MPF every month if I had that, effectively adding 50% to my salary.


  8. #8

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    MPF is like this, you put in 5% from you salary and employer puts in 5% (match the $). Usually, the employer will undercut the salary 5% when you start the job to make up for paying it. The maximum the employer can pay is $1000, that's from my side as an employer.

    I pay about 500 MPF for 1 employee and I believe about 650 MPF for another, the rest I forgot. I like the idea, as it helps the HK residents with at least some funds to fall back on in case of losing their job. For me, extra few k HK/mo is nothing, but long term for them it could be a matter of paying for rent and food or not. I think all in all, my company spends around 10k hk on MPF +/- (give or take), nothing major really.

    Compare this to the US, where we were spending around 18-22% on payroll tax and medical matches for the employees, on top of all the other taxes, and you can see the benefit of doing business in HK.


  9. #9

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    Quote Originally Posted by tvrlover:
    I pay about 500 MPF for 1 employee and I believe about 650 MPF for another, the rest I forgot.
    Just as well you're not in finance or try to make people believe what you're talking about when you quote figures, percentages or predictions really.

  10. #10

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    Quote Originally Posted by Lammarite:
    Just as well you're not in finance or try to make people believe what you're talking about when you quote figures, percentages or predictions really.
    Were you searching my post and reading all 250 of them just to say this? you got too much time bud.

    I have 4 accountants, and 2 auditors (+ solicitors/barristers and so on), so I don't bother myself with the #s MPF of each and every employee - I have other things to do.
    Last edited by tvrlover; 08-10-2008 at 10:56 PM.

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