MPF Minimum Income Rises to HK$6,500 on 1 November: What Workers, Employers and Self-Employed Must Do

LegCo has passed the amendment raising the MPF minimum relevant income from HK$5,000 to HK$6,500, effective 1 November 2011. Employees earning under HK$6,500 a month stop paying the employee share — but employers must keep paying theirs; self-employed people earning under HK$6,500 a month or HK$78,000 a year are also exempt. Different roles, different to-dos.

How the new regime works

Each party’s action list

Employers: update payroll and contribution systems to calculate at the new level from 1 November.

Self-employed: those in the HK$5,000–6,500 monthly (or HK$60,000–78,000 annual) band get automatic updates from their trustee; if you’ve forgotten your declared income, contact your trustee promptly.

A note for employees: if you earn HK$5,000–6,500 a month, check from November that your employer still pays the employer share and no longer deducts the employee share from your pay (periods starting before 1 November still require it). Call the Contribution Hotline 183 3030 regularly to verify your employer contributes on time and in full.

Don’t treat the saved contributions as bonus spending money. The few hundred dollars freed up each month could become voluntary contributions or other savings — your retired self will thank you. Compare MPF funds’ fees and returns at MPF fund comparison.