Trade unionist backs new MPF levels

六月 16, 2011
Joe Chan

Trade Unionist Legislator, Lee Cheuk-yan, has welcomed the government’s proposal to raise the minimum income threshold for contributions to the Mandatory Provident Fund. Under the proposal, people who earn less than HK$6,500 per month would not need to contribute to the pension fund – up from the current level of HK$5,000. The move would mean an estimated 180,000 workers would not be obliged to make any MPF payments. Mr Lee says the current MPF scheme doesn’t meet the long-term retirement needs of low-income workers, so he backs the government’s proposal because it would mean more take home pay for those struggling to make ends meet. The government has also proposed raising the maximum monthly contribution to the MPF by a quarter to HK$1,250. That would lead to about 514,000 people who earn HK$25,000 or more paying an additional HK$250 a month from next June.

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