Government mulls raising MPF minimum income threshold again; groups urge HK$6,500

LegCo’s financial affairs panel today discussed raising MPF contribution income thresholds. Several groups urged the minimum monthly income for mandatory MPF contributions be raised to HK$6,500 — otherwise, under the government’s original proposal of just HK$5,500, virtually all full-time employees would have to contribute after the minimum wage takes effect, leaving low earners worse off in real terms.

Why raise the floor again?

The minimum wage lifts pay, dragging low earners into contributions. Financial Services and Treasury Bureau deputy secretary Julia Leung said she understands that after the minimum wage, many low-income workers’ pay rises enough to hit the threshold. She agreed the floor should be raised promptly so these workers keep more cash for daily needs. The bureau will consolidate mainstream proposals for the upper and lower thresholds and return to LegCo, hoping to finalise this year.

What was the original proposal?

HK$5,000 to HK$5,500 last year — before the minimum wage was set. In last July’s annual MPF review, the government proposed raising the floor from HK$5,000 to HK$5,500; but the minimum wage hourly rate wasn’t settled then, so the matter was deferred until now.

To see how much different incomes must contribute, visit MPF fund comparison.