EMPLOYEES will be able to offset contributions to the Mandatory Provident Fund against tax, under concessions in the Budget. The allowance, which will be capped at $12,000, eases the tax burden on those committed to retirement schemes who are finding it harder to meet payments because of the economic slowdown. HSBC provident fund services chief executive Greg Willis said that under the MPF scheme - for which legislation will be introduced to Legco this month - employers and employees must contribute 5 per cent of the employee's monthly salary, up to a maximum income of $20,000. 'This means the maximum employer contribution will be $1,000 per month and the maximum employee contribution will be $1,000 per month,' Mr Willis said. The Government, confronted by the potential social welfare burden of an ageing population, was boosting incentives for pension planning, he said.