Why Did 180,000 Workers Stop Needing MPF Contributions?

What Was the New Arrangement?

With the minimum wage in force, the government raised the MPF contribution income floor from $5,000 to $6,500 and the ceiling from $20,000 to $25,000. The new floor took effect November 1 this year; the ceiling followed on June 1 next year.

How Many Were Affected?

The government estimated an extra 180,900 employees and self-employed persons would be exempt from mandatory contributions, while 514,500 would make additional contributions under the higher ceiling. Both labour and business welcomed the move.

What Did Stakeholders Say?

The FTU’s Wong Kwok-hing wanted swift implementation so workers would not keep contributing — effectively a pay cut — during the transition. Business lawmaker Jeffrey Lam called the review appropriate alongside the minimum wage; the MPFA’s earlier proposal of just $5,500 had been attacked as based on stale data.