The MPF Scheme Ordinance was finalized in 1998. It aims to establish a mandatory privately-managed provident system for Hong Kong that will provide retirement benefits to all employees. Employers MUST enroll ALL their employees - those aged 18-64 - in an MPF scheme by 1 December, 2000. In practice scheme selection should be made by 1 October, 2000.
Inevitably, because this is a government initiative the attendant rules and regulations are quite detailed and stringent. Employers who set up an improper scheme may attract a fine of up to HK$100,000 and/or a six month prison term.
Because there are many MPF schemes on the market, picking the one that is best suited to your business, as well as the needs of your employees, is vital. Not all the schemes are the same.
Specifically, we can help in such areas as:
• advising on tax benefits for both employers and employees.
• advising on those excluded or exempted from MPF.
• advising on what are the contributions for different types and ages of employee.
• assisting with the best means of ensuring regular payments are made.
• defining your responsibilities and those of your employees.
• compliance issues interaction with Long Service Payments.