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MPF - Employer's Contribution Cash Benefit?

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  1. #1

    Join Date
    Jun 2016
    Posts
    2

    MPF - Employer's Contribution Cash Benefit?

    Hi there,

    I am moving to HK and my employer has asked me to fill a form declaring whether I am a member of an overseas pension scheme - to exempt them from contributing to MPF on my behalf if I am.

    In Singapore, some companies (e.g. Big 4) commonly provide a cash benefit of the equivalent of the companies' share of MPF/CPF contribution, for employees who are not entitled to Singapore CPF scheme membership (e.g. non-Singaporean/PR employees).

    Is this common in Hong Kong?

    Many thanks! I am about to join an overseas pension scheme hence the question.

  2. #2
    Nep
    Nep is offline

    Join Date
    Aug 2015
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    Happy Valley
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    I did not know that it was possible to opt out.


  3. #3

    Join Date
    May 2008
    Location
    DB
    Posts
    3,640
    Quote Originally Posted by Nep
    I did not know that it was possible to opt out.
    Enrolling employees

    No. 7

    Exempt persons include:

    1. employees and self-employed persons who have attained 64 years of age on the date the relevant provision in the Mandatory Provident Fund Schemes Ordinance is implemented, i.e. 1 Dec 2000;
    2. domestic employees;
    3. self-employed hawkers;
    4. people covered by statutory pension or provident fund schemes, such as civil servants and subsidized or grant school teachers;
    5. members of occupational retirement schemes which are granted exemption certificates;
    6. people from overseas who enter Hong Kong for employment or self-employment for not more than 13 months;
    7. people from overseas who enter Hong Kong for employment or self-employment and who are covered by overseas retirement schemes; and
    8. employees of the European Union Office of the European Commission in Hong Kong.
    Nep likes this.

  4. #4

    Join Date
    Dec 2008
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    -
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    1,666

    Why not join MPF in HK to get an extra 5% (max hkd1500) from your employer? Even if the mpf monkeys were to loose year after year it is unlikely the loss (including fees) is >50% per year so you will most likely end up with more than you contributed. When you are leaving HK you can withdraw the funds.

    shri and civil_servant like this.

  5. #5

    Join Date
    Dec 2010
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    Wrong side of the door to hell
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    5,071

    Is the new company local? If it is then you can whistle in the wind for any extra cash benefit. They can't claim it back when you leave.

    If it is an international company, try negotiating for them to contribute to your overseas pension.

    If not then you really should consider an MPF. Do the sums, because it might be better to take the employers money and take it all with you when you leave HK.

    shri and civil_servant like this.

  6. #6

    Join Date
    Jun 2016
    Posts
    2

    Thanks all for your replies!

    So I gather from all the replies asking me to opt in for MPF, that providing the employers portion as a cash benefit for MPF-exempt employees is not a common arrangement in HK?

    In SG it's actually better ( in terms of cash upfront ) to be non-PR and thus ineligible for CPF in some companies as the company would pay the employers contribution as an additional cash benefit.

    my new company is an international company but logistically asking them to contribute to Singapore CPF might be difficult administratively

    thanks!

    Last edited by Chewy2; 08-06-2016 at 12:47 PM.

  7. #7

    Join Date
    Feb 2011
    Location
    Hong Kong
    Posts
    6,331

    It's very common that everyone has MPF. Your employer is being cheap, and I'm not sure if there are account opening fees or what not but I always feel that employers drop the ball on opening mpf accounts. They wait to the last minute.

    How it usually worked for me and I'm not sure if it is correct or not. The first 2-3 months you get your full salary. When 3 months come, the employer opens mpf and deposits 1500xboth sides so 3000x 3 = 9000. So usually they pay the first 9000 then start deducting me from the 4th month.

    Not sure if this is the proper way or not but I've had it happen every time.

    Another note that the employee has a responsibility to have mpf, I believe, if you earn over the minimum threshold salary, think it's $6,xxx. So who's responsible to ensure you are in compliance. I would hate to have to prove my case in HK because it isn't transparent and practically everyone has MPF. Why are you so special....

    And another note, it's 3000/month towards retirement. You pay 1500. What's wrong with that


  8. #8

    Join Date
    Oct 2010
    Posts
    18,901

    I don't have MPF. If your company isn't going to contribute to your overseas pension, then no harm in having them contribute to your local MPF though.