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Phila Siu

The contribution rate to the MPF should be raised in the future, the new chairman of the Mandatory Provident Fund Schemes Authority said.
At present, employees must pay 5 per cent of their monthly salary into their MPF account, which their employers match, capped at HK$1,500.
Employees making less than HK$7,100 a month do not need to contribute, although their employers still do.
"The contributions are not high and that limits the growth of the MPF," said Dr David Wong Yau-kar, who succeeded Anna Wu Hung-yuk as chairman of the MPFA in March.
"In the long-run, raising the rate is something that can be considered," Wong said. "But the prerequisite is that the public should have confidence in the MPF and are happy to see the contribution rate go up."
He added that it was too early to say how much the level should go up by.
He said that since the MPF came in, back in 2000, the average annual return has been 4.3 per cent, which is much better than the average annual inflation rate of 1.8 per cent over that time.
MPF assets have reached HK$600 billion, with HK$150 billion the investment return.
Unionists have been urging the government to abolish a mechanism allowing employers to use their contributions to the MPF to offset the severance payments owed to an employee.
Wong said this was a problem that needed to be solved, without elaborating as to his stance on the issue.
He added that the MPFA was a supervisory body and that the offsetting mechanism was a matter of public policy that should be decided by the relevant government departments.


MPF contribution rate should be raised, says new chairman

David Wong Yau-kar, the new Chairman of the Mandatory Provident Schemes Fund Authority, said that it was too early to say how much the level should go up by. Photo: Simon Song

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Hong Kong

Hong Kong Economy

The contribution rate to the MPF should be raised in the future, the new chairman of the Mandatory Provident Fund Schemes Authority said.


MPF contribution rate should be raised, says new chairman

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The contribution rate to the MPF should be raised in the future, the new chairman of the Mandatory Provident Fund Schemes Authority said.

The contribution rate to the MPF should be raised in the future, the new chairman of the Mandatory Provident Fund Schemes Authority said.