Like Tree12Likes

MPF in Hong Kong

Closed Thread
Page 2 of 2 FirstFirst 1 2
  1. #11

    Join Date
    Aug 2006
    Posts
    7,517

    Note also that in theory the employer's contribution should be 'extra' - above your basic salary; however, it is not unknown for some employers to deduct their MPF contribution from any end of year bonus due to the employee (legal, but certainly against the spirit of the MPF ordinance). Best to find out where the employer's contribution is coming from before deciding whether to press them to contribute from the beginning.


  2. #12

    Join Date
    Oct 2006
    Location
    Sarcasm - because beating the crap out of people is illegal
    Posts
    14,622
    Quote Originally Posted by drumbrake:
    Note also that in theory the employer's contribution should be 'extra' - above your basic salary; however, it is not unknown for some employers to deduct their MPF contribution from any end of year bonus due to the employee (legal, but certainly against the spirit of the MPF ordinance). Best to find out where the employer's contribution is coming from before deciding whether to press them to contribute from the beginning.
    Not just year-end bonus, but also contract-end bonus. Check your contract.

  3. #13

    Join Date
    Feb 2016
    Posts
    21

    Thanks Trebor

    Yes I agree drumbrake, does seem to be against the spirit of the legislation if it's the govt's intention that employers are to help in taking care of their employees future. Or has the legislation been enacted because the HK govt doesn't trust employees to provide for their own retirement hence this scheme to compulsorily withhold salaries for retirement.


  4. #14

    Join Date
    Aug 2011
    Posts
    930
    Quote Originally Posted by drumbrake:
    Note also that in theory the employer's contribution should be 'extra' - above your basic salary; however, it is not unknown for some employers to deduct their MPF contribution from any end of year bonus due to the employee (legal, but certainly against the spirit of the MPF ordinance). Best to find out where the employer's contribution is coming from before deciding whether to press them to contribute from the beginning.
    The 'some employers' also include the government themselves, for example NET teachers have the entire employers contribution deducted from their end of contract bonus.

  5. #15

    Join Date
    Aug 2006
    Posts
    7,517
    Quote Originally Posted by Ern:
    The 'some employers' also include the government themselves, for example NET teachers have the entire employers contribution deducted from their end of contract bonus.
    Setting a great example!
    Ern and Open Casket like this.

  6. #16

    Join Date
    Aug 2009
    Posts
    1,675

    On the topic of MPFs, can I check: is this MPF fund list a comprehensive summary of the fund "choices" one has with all the MPF providers? It seems a bit "lacking" compared to a UK Personal Pension or SIPP.

    MPFA


  7. #17

    Join Date
    Jun 2008
    Location
    CWB
    Posts
    411

    I believe that, strictly speaking, the 'first 13 months' bit is commonly a fudge by employers. I must admit I haven't read the guidelines for a long time, but when this came up several years ago, it was said that employers don't have to open MPF accounts for employees who are working in Hong Kong for up to one year (and the employees who have come here to work for a year or less do not need to have or contribute to MPF accounts). This was intended to apply to people working on short contracts of up to one year in length, and if someone is taken on with a longer contract (or with the expectation that the person will serve for more than a year), then the short-term worker exemption really ought not to apply and the employer should set about opening an MPF account as soon as practicable after the employee has commenced work.

    In practice, the fudge happens and employers give themselves a blanket exemption from opening (and hence paying into) an MPF account for the first 13 months, regardless of how long they expect their employee to stay.

    Employers often sell this strategy to new employees as a good thing, as the employee gets more take-home pay for the first year. In reality, however, the employee is losing out on the employer's contribution.

    TheBrit likes this.