Start-up employers’ MPF duties (part 1): part-timers must be covered too; minimum income rises to HK$6,500 in November

This column explains MPF contribution details for new employers starting out. Cash-strapped start-ups often hire part-timers to control costs — but full-time, part-time or summer staff alike trigger employer duties once conditions are met.

Which employees must employers cover?

Any employee aged 18 to 64 employed for at least 60 days must be enrolled in an MPF scheme by the employer — full-time, part-time and summer workers all count. Don’t be tempted to reclassify employees as self-employed; the MPFA won’t allow it.

How are contributions calculated?

Employees earning HK$5,000 or more a month trigger 5% mandatory contributions from both employer and employee, capped at HK$1,000 a month; below HK$5,000, the employee need not contribute but the employer still must. Relevant income covers wages, holiday allowances, commissions, bonuses and allowances — but not severance or long-service payments. Note: the minimum relevant income level rises to HK$6,500 a month from 1 November this year.

Is there a contribution-free period for new hires?

Yes: new employees enjoy a 30-day contribution holiday (not for casual employees), though employers must still pay the employer share for those 30 days. Employers must submit remittance statements to trustees by the contribution day (within 10 days after each contribution period ends), detailing each employee’s relevant income and contributions; late payment is an offence — the MPFA can levy surcharges and pursue criminal prosecution in serious cases. New entrepreneurs should study employer contribution duties and how MPF schemes operate.