Hong Kong government pushes for Mandatory Provident Fund hike

The government proposes increase the monthly minimum income level to $6,500 from November and the maximum level to $25,000 from June next year.

Mandatory Provident Fund contributions will rise later this year, under a move tabled by the Government at the Legislative Council on Tuesday.

It wants to increase the monthly minimum income level from $5,000 to $6,500 from November, and the maximum level from $20,000 to $25,000 from June 1 next year.

Increasing the minimum level will exclude an additional 180,900 employees and self-employed people from making mandatory contributions, while raising the maximum level will require another 514,500 employees and self-employed people to make additional mandatory contributions, according to a government report.

The proposal is set out in the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 2) Notice 2011 and the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 3) Notice 2011.

The notices also seek to make corresponding amendments to the daily and annual minimum and maximum income levels.