MPF employer obligations Hong Kong: when must a small shop owner start contributing?

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

Planning to open a snack shop with one full-timer and a few part-timers, and wondering when MPF employer obligations kick in? Many small bosses assume part-timers are exempt, or that contributions can wait until probation ends. The law says otherwise.

Are part-timers covered by MPF?

Yes. Any employee aged 18 to under 65 who has been employed for 60 days or more must be enrolled — full-time or part-time. The employer must register them with an MPF scheme and contribute as required.

What is the MPF enrolment deadline of 60 days?

Contributions are counted from the employee’s first day of work, and must reach the trustee on or before the 10th day of the month following the month in which the 60th day falls. Employees enjoy a contribution holiday for their first 30 days of employment plus the first incomplete payroll period, so nothing may be deducted from their wages during that time.

What admin duties do employers have?

Beyond paying, employers must file a remittance statement with the trustee, correctly listing each employee’s income and contributions. A missing or erroneous statement that delays processing past the contribution day counts as default, attracting a 5% surcharge on the arrears, which goes into the employee’s MPF account together with the shortfall.

Employers must also issue a contribution record to each employee within seven working days of payment, and notify the trustee in writing when an employee leaves — otherwise the trustee may report a false default to the MPFA.

The authority said at the time it would step up enforcement, fining habitual defaulters without prior warning.