The Mandatory Provident Fund Schemes Authority has proposed raising the minimum and maximum income thresholds for MPF contributions, according to local media.
The proposed changes raise the minimum contribution threshold from the current HK$7,100 to HK$10,500, and increase the maximum from HK$30,000 to HK$40,000.
If the proposal is implemented, the monthly contribution cap for both employers and employees would increase from the current HK$1,500 to HK$2,000 –an increase of HK$500 per month. Employees earning below the minimum threshold would not be required to contribute, with employers contributing 5 percent on their behalf.
MPFA told Sing Tao Daily, the sister publication of The Standard, that the review is currently underway, during which employment income data and other relevant factors will be considered in accordance with legal requirements, adding that it will complete the review in due course, with the goal of submitting a report and recommendations to the government by mid-year.
Additionally, the MPFA consulted the Labour Advisory Board last year on raising the minimum and maximum MPF contribution income levels to HK$10,100 and HK$33,000 respectively. The current proposal is higher than the levels suggested last year.
Gloria Leung
