MPF rules

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  1. #1

    Join Date
    Aug 2005
    Posts
    37

    MPF rules

    Morning,

    Trying to find a straight answer to some of my MPF queries is driving me to distraction. I really do think that I have been paying MPF for some of my staff when i don't need to, well, at least too much anyway.

    I have my MPF provision through Manulife but getting a straight answer out of the telephone jockeys is driving me mad!

    I've a few questions that hopefully employers out there can answer and maybe save me a few thousand a month.

    My business is still quite young and working 100+ hours a week generally cut's down on my 'Am I complying' time....I tend to over compensate rather than get caught and fined.

    1) I employ full time staff (over 16 hours right?) and I have to pay 5% of every penny they earn, as do they

    EXAMPLE: I pay my assistant $10,000 per month so she pays $500 and I pay $500?
    I believe that I'm ok with all my f/t staff

    2) I employ staff who work less than 16 hours. I still have to pay 5% on every penny they earn, as do they?

    Example 1: I pay someone $200 a month for 1 hours work. I have to pay $10 and they have to pay $10?

    Example 2: I emply someone who works 14 hours a month and I pay them $3,000. I have to pay $150 and they have to pay $150?

    3) I employ someone part-time who has multiple p/t positions. They will sometimes work the majority of their hours with me. Do they have multiple MPF accounts of 1 or just for the largest employer?

    Confused? Not as much as me.

    Thanks for any advice.


  2. #2

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,217

    Doesn't the MPFA site address these questions? From what I see on a quick read there is no bottom limit on the number of hours a part-timer works (provided that they are employed on an open-ended contract or a fixed term one which runs for more than 60 days). However, if they earn less than HK$5000 per month then only the employer needs to make contributions. Each side's mandatory contributions are capped at HK$1,000 per month (i.e. not on income above $20K). If an employee has multiple employers then they must be enrolled separately by each.

    All of this information is very quickly available through http://www.mpfa.org.hk


  3. #3

    Join Date
    Aug 2005
    Posts
    37

    Thanks for that.....an excellent site..

    The only question left unanswerd now and I can't find it listed there is:

    I employ someone who earns more than $5,000 HKD in 2 companies or more....They are only allowed to be in 1 MPF scheme...do i then need to go through all of the hassle of joining 'their' scheme? I want all of my staff with the same MPF provider, the paperwork is ridiculous. According to the regulations, employees should join an employers existing scheme.....so.?


  4. #4

    Join Date
    Apr 2003
    Posts
    12,383

    You have your company's scheme and your employee accounts are under that scheme. An employee can have several accounts.

    By the way, if you're with HSBC, contact their MPF department. You usually get assigned an account manager who is generally well trained and able to answer your questions.