LegCo passes rise in MPF minimum income level to $6,500

LegCo has passed the motion raising the MPF minimum relevant-income level to $6,500, with the maximum at $25,000, effective this November. The higher floor ensures low-income workers need not contribute once the minimum wage takes effect.

Why raise the floor?

To dovetail with the minimum wage and protect low earners. Secretary for Financial Services and the Treasury KC Chan said the higher threshold keeps low-income workers exempt from contributions under the minimum wage.

What did legislators complain about?

Many attacked high MPF administration fees and demanded a prompt review. Labour-sector members want the severance-payment offsetting mechanism scrapped; pan-democrats want a universal pension study; catering-sector representative Tommy Cheung criticised the lack of industry consultation; others said November is too late. Chan replied that 20,000-plus employers must adjust contribution systems, so four months’ preparation is reasonable — the last income-level adjustment in 2002 needed six months.

For MPF contribution rules, visit the MPF education centre, or compare scheme fees at MPF fund comparison.