Why Raise the MPF Minimum Contribution Floor?

What did the government propose in 2011?

In June 2011, the government proposed raising the minimum relevant income from HK$5,000 to HK$5,500 (from 1 November 2011), while the maximum would rise in phases from HK$20,000 to HK$30,000. Below the floor, employees make no mandatory contributions — but employers still pay their 5%.

What did AXA say about the impact?

AXA said the floor adjustment would affect contribution income by less than 1% — negligible. The floor had sat at HK$5,000 since 2002; the statutory minimum wage had lifted pay levels, so it had to follow.

What should workers know?

Under the floor you skip employee contributions, but the employer’s 5% keeps flowing; the account keeps compounding. Compare funds at MPF fund comparison.