Proposed 33% rise in MPF payments ‘may pile on business pressure, hit jobs’
But labour sector lawmaker calls for bolder increases in maximum income level threshold to meet statutory requirements and reflect rising salaries
Proposals by Hong Kong’s pension regulator to increase Mandatory Provident Fund (MPF) contributions for higher-paid workers by up to 33 per cent could worsen business challenges and hurt the jobs market, a lawmaker and human resources expert have warned.
A labour representative, however, urged the Mandatory Provident Fund Schemes Authority (MPFA) to pursue even bolder increases to meet statutory requirements and reflect rising salaries.
The MPFA had announced that it was reviewing the maximum and minimum income levels for contributions to the retirement funds, which had not been adjusted for 13 years, and would submit a review report to the government by the middle of the year.
The Federation of Hong Kong Industries (FHKI), one of the city’s largest business chambers, revealed that the MPFA had proposed increasing the maximum income level to HK$40,000 (US$5,112) per month from HK$30,000, while also increasing the minimum threshold from HK$7,100 to HK$10,000.
Lawmaker Jonathan Lamport said the business community generally welcomed the minimum threshold increase, which would exempt more low-income workers from MPF payments, but many were concerned about the higher maximum income level.
He said the economy was still recovering and businesses, especially small and medium enterprises, were “still facing challenges”.