Hong Kong considers raising MPF contributions after 13-year freeze on thresholds
Hong Kong’s workers and employers may have to pay more into the Mandatory Provident Fund, as the pension regulator considers calls to raise the contribution threshold, which has remained unchanged for 13 years. Ayesha Macpherson Lau, chairwoman of the Mandatory Provident Fund Authority (MPFA), said in her blog on Sunday that the body had consulted…
Hong Kong’s workers and employers may have to pay more into the Mandatory Provident Fund, as the pension regulator considers calls to raise the contribution threshold, which has remained unchanged for 13 years.
Ayesha Macpherson Lau, chairwoman of the Mandatory Provident Fund Authority (MPFA), said in her blog on Sunday that the body had consulted various stakeholder groups since February on adjusting the minimum and maximum income levels used to determine contributions.
She hinted at a possible increase in the thresholds, noting that the prolonged lack of adjustments had left pension fund contributions out of touch with the cost of living.
“There is a call to raise the minimum income level to alleviate financial burden on low-income employees, while also considering suitable increased adjustments to the mandatory contributions of employees whose wages exceed the current maximum income level, to ensure MPF’s basic retirement protection function is not eroded,” Macpherson Lau said, citing opinions gathered so far from labour groups, business chambers, employers’ representatives and professional service bodies.
She added that the feedback also included suggestions on how much the contributions should be raised.
Macpherson Lau said the authority would consolidate all views into a review report to be submitted by the middle of this year.
