Budget Rumour: HK$6,000 MPF Top-Up for Low-Income Earners

In this pre-budget watch, word is that tomorrow’s (23rd) Budget may inject HK$6,000 into the MPF accounts of employees earning under HK$10,000 a month. The rumour mill is really asking how does MPF work as a channel for one-off relief — and among trustees, BOC-Prudential and Bank of Communications Trustee look set to benefit most. Some operators have already started pulling data on eligible members in case the rumour proves true and they must report beneficiary numbers.

What is the rumour?

A HK$6,000 injection into the contribution accounts of employees earning less than HK$10,000 a month. Bank of Communications Trustee CEO Li Shaoji said roughly 60% of his firm’s contributors would preliminarily qualify, though many hold inactive preserved accounts scattered across trustees, so the data needs verification and no firm headcount is available yet.

Which trustees gain most?

BOC-Prudential expects over 143,000 qualifying contributors, costing about HK$858 million. CEO Chen Yuchang said members earning under HK$10,000 — mostly in catering and cleaning — number over 143,000, or 23% of its 620,000 clients. Trustees whose books skew toward grassroots workers stand to gain the most from the handout.

What about the contribution income limits review?

The government aims to table final proposals on adjusting the minimum and maximum relevant income levels before LegCo’s summer recess in July. The Legislative Council’s financial affairs panel discussed the review yesterday (21st); the Financial Services and the Treasury Bureau said any proposal needs legislative amendments and scrutiny by a bills committee. Insurance-sector legislator Chan Kin-por expects the changes will not make it through this legislative year — workers will have to wait.

To compare charges and returns across MPF funds, visit MPF fund comparison.