People earning less than HK$6,500 a month are being set free from making monthly contributions to the Mandatory Provident Fund. The Legislative Council passed an amendment Thursday, raising the income floor from HK$5,000 a month, effective November 1 — offering relief to more than 180,000 employees and self-employed workers. In all, 337,300 people will escape the monthly contribution requirement, said Secretary for Financial Services and the Treasury Chan Ka-keung.
Why now?
The minimum wage made it necessary. The Minimum Wage Ordinance took effect May 1: a worker on an 8.5-hour day, 26 days a month, now earns at least HK$6,188. Without the amendment, the pay rise would have been offset by new MPF deductions.
The key numbers
| Item | Figure |
|---|---|
| Old minimum income | HK$5,000/month |
| New minimum income | HK$6,500/month |
| Effective date | 1 November |
| People freed from contributions | 337,300 |
Reaction
Legislators broadly welcomed the move. Lee Cheuk-yan — who had called the proposal “half good news” — said the higher threshold helps those who “cannot even guarantee their daily livelihood, not to mention provident savings”. Lawmaker Cheung Yu-yan said further amendments are still needed.
A rare win-win: the lowest-paid keep more of today’s wages, and the system keeps its integrity. Compare MPF funds’ fees and returns at MPF fund comparison.
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