MPF minimum income floor under review: $5,000 up to $5,500 — or $6,500?

With minimum wage in force from 1 May, MPF contribution rules must follow. MPFA chief executive Diana Leung says the government is considering raising the minimum relevant income level from $5,000 to $5,500 or above.

Why raise the floor?

Because minimum wage lifts grassroots pay — the floor would otherwise lag behind. Currently employees earning under $5,000 skip the employee share (employers still pay theirs). After minimum wage, full-timers on minimum wage earn over $5,000 — without a higher floor, they’d start contributing.

How high?

The MPFA’s earlier LegCo report proposed $5,500, but some lawmakers want $6,500. The government plans to finish amending the rules in July and implement by year-end. FTU lawmaker Wong Kwok-kin warns a higher floor forces grassroots workers to contribute — effectively a pay cut — and urges the government to think twice.

What does it mean for workers?

Those earning between $5,000 and the new floor stay exempt from employee contributions — for now. But as wages rise, more workers will fall into the net. Learn the contribution rules early and plan your retirement savings.

To understand contribution floors, ceilings and calculations, visit the MPF education centre.