What You Need to Know About Mandatory Provident Fund in Hong Kong
Posted by Emma5858 on December 2nd, 2020
Hong Kong has emerged to be a popular business destination for people from different parts of the world. Actually, more and more people are visiting Hong Kong with the main intention of changing their lives for the better. As a new employer in Hong Kong, you ought to be fully aware of the different regulations and schemes especially the Mandatory Provident Fund (MPF). In this article, we will take you through some of the things you need to know about mandatory provident fund Hong Kong.
What is MPF in Hong Kong?
Mandatory Provident Fund (MPF) is a compulsory savings scheme that is aimed at covering all employees and self-employed persons aged 18-64 in Hong Kong. In short, it is a safety net for retirement. The Mandatory Provident Fund Schemes Ordinance (MPFSO) was launched by Hong Kong government in response to the rapidly ageing workforce back in 1995.
Different Types of MPF Schemes
Now that you have a basic understanding of the MPF, you ought to keep in mind that there are three types of MPF schemes i.e. Master Trust Schemes, Employer-sponsored Schemes and Industry Schemes. Master Trust Schemes is the most popular of all and operates by pulling together contributions from different participating employers and their employees. What is even better, it is open to self-employed persons not forgetting persons with accrued benefits.
Things tend to be different with the Employer-sponsored scheme as it is limited to employees of a single employer and its affiliated companies. Given that it comes with a membership restriction; the scheme tends to be more cost-effective for large corporations. Last but not least is the Industry Scheme that is only applicable for employees where labor mobility is high. This is mostly the case in the construction and catering industries.
There you have it, some of the things you ought to know about the mandatory provident fund Hong Kong. Considering MPF is aimed at providing retirement benefits for your employees, it is highly advisable that you exercise caution if you are to choose the best MPF scheme for you. This will mean examining important things such as risk level of funds, company stability, customer support, miscellaneous charges to mention a few. Through this action, it will only be a matter of time before you finally choose the best MPF scheme for you.
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About the AuthorEmma5858
Joined: October 8th, 2017
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