Was the 2011 MPF Ceiling Rise a Disguised Pay Rise?

How did the 2011 ceiling proposal give 400,000 people a “raise”?

In 2011, the government weighed raising the contribution income ceiling from HK$20,000 to HK$25,000: nearly 400,000 staff earning over HK$20,000 would contribute up to HK$250 more a month — matched by employers, an effective pay rise. The floor was eyed to rise from HK$5,000 to HK$6,500 to avoid “everyone contributes” under the minimum wage.

What were the official recommended figures?

The MPFA’s formula suggested HK$5,500/HK$30,000, but a LegCo hearing pushed back: HK$6,000–6,500 for the floor and HK$25,000 for the ceiling was enough.

How to invest the extra contributions?

Make the extra money work; compare returns and fees at MPF fund comparison.