Seconded overseas but still paying MPF: employer obligations you should know

Seconded to an overseas posting for two years — can you pause your MPF contributions? The answer is no. The MPF system covers employees engaged in Hong Kong, who do not necessarily work in Hong Kong: as long as they maintain sufficient ties with the city, both employee and employer must keep contributing even while posted abroad.

If I’m seconded overseas, do I still have to contribute to MPF?

A seconded employee who maintains sufficient ties with Hong Kong cannot stop MPF contributions. According to the MPFA, a Hong Kong resident engaged by a company operating a business in Hong Kong remains covered even when posted overseas for a period — as long as sufficient ties with Hong Kong are maintained, both the employee and the employer must stay in an MPF scheme and contribute on time; being out of town grants no exemption.

Three common scenarios at a glance

For example, a worker seconded to his company’s UK branch for two years keeps sufficient ties with Hong Kong, so he and his employer must both keep contributing. Another example: a trading firm hiring a Japanese employee to work in Hong Kong must enrol him in an MPF scheme if his work visa exceeds 13 months and he is not covered by any other overseas retirement plan.

Employer MPF obligations: place of registration doesn’t matter — place of engagement does

Whether an employee must join an MPF scheme has nothing to do with where the company is incorporated; what matters is whether the company engages the employee in Hong Kong. For instance, if a mainland-registered company sets up an office in Hong Kong and engages a local engineer there to supervise projects on the mainland from time to time, that engineer is also covered by the MPF system. When in doubt, call the MPFA hotline on 2918 0102.

For more on MPF contribution rules, see MPF education.