MPF contribution cap rises to HK$1,250: what higher earners must check now

This article is a rewrite of a report from June 2012.

A shorter companion to the full explainer on the same change: from 1 June 2012, MPF’s maximum relevant income rose from HK$20,000 to HK$25,000, lifting the monthly contribution cap from HK$1,000 to HK$1,250. This version focused on what workers needed to do immediately.

Who pays more?

Employees with monthly relevant income above HK$20,000 — and their employers — had to adjust; those at HK$20,000 or below were unaffected. Higher earners would see up to HK$250 more deducted monthly as employee mandatory contributions, with employers adding up to HK$250 more — up to HK$500 extra in retirement savings a month.

What should workers check?

First, check June payslips onward to make sure both employer and employee portions are correct. If contributions look short, follow up with the employer first, then call the trustee hotline with questions.

Second, watch for voluntary contributions being quietly squeezed. Where employers set total contributions as a fixed salary percentage, a bigger mandatory slice automatically shrank the voluntary one — the higher the salary, the bigger the squeeze. Ask the employer directly if in doubt.

Third, did the employer’s payroll system keep up? This was the first maximum-income revision in 11 years, and employers had to contribute at the new level by the monthly contribution day (the 10th) — outdated systems risked surcharges and fines. Workers couldn’t fix their employer’s system, but they could protect themselves: never ignore a wrong contribution record.