Why Did the Lion Rock Institute Call MPF a Heavy Tax?

What did Wong Pit say in March 2011?

Lion Rock Institute CEO Wong Pit called MPF essentially a heavy tax: a HK$20,000-a-month worker pays HK$870 in salaries tax but HK$2,000 in MPF contributions; uncompetitive fund houses levy hefty admin fees that shrink contributions. Raising the ceiling from HK$20,000 to HK$30,000 would cost 480,000-plus citizens up to HK$1,000 more monthly — HK$7 million more a month for fund houses: “vested interests, worse than ever.”

What did the institute demand?

Stop discussing higher ceilings, implement free choice of trustees immediately, abolish MPF long-term; it urged parties to drop ideological divides and oppose MPF together.

What’s the lesson for workers?

The system’s controversies continue — manage your own account at MPF fund comparison.