Government proposes to increase MPF maximum income to HK$25,000

六月 15, 2011
Joe Chan

The Government has proposed to increase both the monthly minimum relevant income level (Min RI) and the monthly maximum relevant income level (Max RI) for the Mandatory Provident Fund (MPF).

It is proposed that the Min RI would be raised from HK$5,000 to HK$6,500 with effect from 1 November 2011, and the Max RI would be increased from HK$20,000 to HK$25,000 with effect from 1 June 2012.

With the increase of the Min RI to HK$6,500, an additional 180,900 employees and self-employed persons (SEPs) would be excluded from making mandatory contributions. With the increase of the Max RI to HK$25,000, 514,500 employees and SEPs would be required to make additional mandatory contributions.

The MPF Schemes Ordinance (MPFSO) stipulates that the MPF Schemes Authority (MPFA) has to conduct a review of the Min RI and the Max RI at least once every four years, and that the MPFA must take into account specified statutory factors.

The pre-existing Min RI has been set at HK$5,000 per month since 2002 and the Max RI has been maintained at HK$20,000 per month since the implementation of the MPF System in 2000. In the past three reviews conducted by the MPFA in 2002, 2006 and 2010, the statutory factors all pointed to an increase to HK$30,000.

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