MPF floor raised to $6,500; legislators push for universal pension

LegCo has passed raising the MPF minimum relevant-income level to $6,500, effective November, so low-income workers need not contribute once the minimum wage takes effect. Legislators urged the government to review the MPF system and study a universal pension scheme.

Why only November?

200,000 employers’ payroll systems need time. Financial services secretary KC Chan answered critics who called November too late: contribution processes across 200,000 employers must be adjusted — the 2002 income-level adjustment took six months’ preparation; this round is shorter. A further review comes in 18 to 24 months.

What else did legislators want?

A full MPF review and a universal pension study. Members pressed the government to overhaul the MPF and move on a universal retirement protection scheme — reflecting the view that the MPF alone can’t meet retirement needs.

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