Self-employed tenure lengthens, possibly an MPF side effect

Census data shows Hong Kong had 186,800 self-employed people as of last mid-year, down nearly 10% from 207,000 in mid-2003 — but the median tenure of self-employment jumped from 6–7 years in 2003 to 10–11 years. Some lawmakers blame the MPF system launched in 2000: employers convert staff to “bogus” self-employment, leaving workers stuck longer without labour insurance or MPF protection.

Who are the self-employed?

They make up 5.3% of the workforce; three-quarters are men and over 70% are aged 40 or above. A third work in transport, warehousing, courier and communications, followed by personal services and finance/insurance. Nearly 60% have secondary or matriculation education; two in ten went self-employed to start a business.

Why are tenures getting longer?

Labour-sector lawmaker Leung Yiu-chung said employers turn full-time staff into “bogus” self-employed, who then become genuinely self-employed and lose their protections. Among 35,800 people who moved from employment to self-employment, 30% did so involuntarily — mainly due to company closures, redundancy or dismissal.

Will minimum wage worsen “bogus” self-employment?

FTU’s Ip Wai-ming worries the minimum wage, effective this May, could increase bogus self-employment; the impact won’t be clear until year-end.

Learn how employees and the self-employed differ under MPF at the MPF education hub.