MPF default contributions: repeat offenders face fines of up to HK$50,000

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

More than a decade into the MPF, complaints about default contributions have hit a record low — but habitual offenders remain a headache. The MPFA’s enforcement chief revealed many repeat violators are “not short of money”; they simply default out of habit. From the third quarter of 2012, fines of up to HK$50,000 will target them.

Who counts as a habitual MPF defaulter?

Habitual defaulters are employers who repeatedly miss contributions. The enforcement chief said they are not in financial difficulty — they routinely wait for the MPFA to chase them before paying. Others are serial administrative offenders, such as repeatedly failing to submit complete employee data or notify trustees when staff leave.

How heavy are the new penalties?

From the third quarter of 2012, employers with three defaults in two years face HK$5,000 or 10% of the arrears even if they pay up immediately; three failures to file termination notices draw HK$20,000; three failures to give employees contribution records draw HK$50,000. Complaints may be down nearly 10% to a record-low 3,243, but deterrence needs teeth.

What is the MPFA’s blacklist?

Since May 2011 the MPFA has published a “records of non-compliant employers and senior officers” — the blacklist — online. More than 4,000 employers were listed by end-2011, including 24 repeat offenders. Cases referred to police for criminal prosecution reached nearly 1,300 in nine months, half the previous full year’s 2,500-plus.

Employers can review their contribution duties at the MPF education hub.