Table of contents
- Change in Company Details FAQs
- Contribution Payment FAQs
- Contribution Surcharge FAQs
- Employee Category FAQs
- Enrolling Employees FAQs
- Making First Mandatory Contributions for New Employees FAQs
- MPF forms and documents FAQs
- Refund of Long Service Payment or Severance Payment FAQs
- Relevant Income FAQs
- Tax FAQs
- Terminating Employees FAQs
Change in Company Details
If my company name changes, what should I do?
You should notify us within 30 days for the change of company name. Please complete an Change of Employer Details Form (Download IN05 form) and provide a copy of valid Business Registration Certificate and/or Certificate of Incorporation on Change of Name and/or other relevant registration documents.
If my company moves, what should I do?
You should inform us of your company's new address and any changes in telephone and facsimile numbers, etc within 30 days of the change, by submitting a Change of Employer Details Form. Download IN05 form
My company's human resources manager left the company. What should I do if I need to change the authorised person?
On the Authorised Signature Specimen form, what do contribution payments, benefit payments and reserve account fund switching mean?
- Contribution payments mean submitting a Remittance Statement and reporting employee termination.
- Benefit payments mean approving employee's partial withdrawal request (where employer's approval is required due to contractual arrangements) and supporting documents for claim.
- Reserve account fund switching is only applicable if your MPF scheme has employer's voluntary contributions or ORSO transfers. It refers to changing the investments of your reserve account, which holds unvested benefits.
My company is currently paying contributions by cheque. How can I change to direct debit from my company's bank account?
You will need to complete two forms and submit them together.
- New/Change of Direct Debit Instruction Notification Form - Download INDP form
- Direct Debit Authorisation - Download IN14 form
Please note that about two weeks' processing time is required to set up a direct debit authorisation for a bank account with HSBC or Hang Seng Bank, and about a month for other bank accounts. You should therefore continue to pay by cheque until you receive a confirmation notice from us that the direct debit has been set up.
Paying your contributions through direct debit saves you time in writing and checking the payee and total amount for each payment. You simply need to send us your completed Remittance Statements and leave the rest to us.
If I would like to change the company's bank account for direct debit, what should I do?
You will need to complete two forms and submit them together.
- New/Change of Direct Debit Instruction Notification Form - Download INDP form
- Direct Debit Authorisation - Download IN14 form
You should continue to pay your contributions using the current bank account until you receive a confirmation notice from us that the direct debit for your new designated bank account has been set up.
If I fail to pay MPF mandatory contributions in full on time, what is the consequence?
The MPF legislation requires employers to pay mandatory contributions in full on or before the contribution day. If you fail to pay mandatory contributions in full and submit completed remittance statement by the contribution day, we are required by law to report any outstanding contributions or late payment to the Mandatory Provident Fund Schemes Authority (MPFA). Contribution surcharge will then be imposed and the employer may also be liable to a financial penalty or prosecution. Therefore, please be reminded to pay mandatory contributions in full and on time to avoid any surcharge and/or financial penalties.
Please allow sufficient mailing time to ensure we will receive your completed remittance statement and payment on time. To enjoy a more effective way to submit contributions, you may explore a number of electronic methods of handling MPF contributions for your employees by click here.
If I fail to pay mandatory contributions in full on time, am I liable to contribution surcharge only until I have received the 'Payment Notice for Outstanding Mandatory Provident Fund Contributions and Surcharge' from thr MPFA?
The MPF legislation requires employers to pay mandatory contribution in full on or before the contribution day. Trustees will have to report late and default contribution details to the MPFA and the employer may be liable to financial penalty or prosecution. All outstanding contribution and late payment will be subject to surcharge even without receiving the 'Payment Notice for Outstanding Mandatory Provident Fund Contributions and Surcharge' from the MPFA.
Is there any cut-off time for the submission of contribution payments and Remittance Statement through HSBC's Business Internet Banking?
If you submit the Remittance Statement before 5pm (Monday to Friday except public holiday), you can submit the contribution payment on the current day by setting the current day as the 'Earliest Direct Debit Date' through HSBC's Business Internet Banking (BIB). If you submit the Remittance Statement between 5pm to 11:59pm (Monday to Friday except public holiday), you can only submit the contribution payment by setting the next working day or the working day thereafter as the 'Earliest Direct Debit Date'. Please note that if you submit the Remittance Statement between 5pm to 11:59pm on the contribution day and set the next working day as the 'Earliest Direct Debit Date', we will still regard the Remittance Statement is submitted on the contribution day.
If I do not have sufficient fund in the designated bank account for cheque clearance or debiting, what is the consequence?
The MPF legislation requires employers to pay mandatory contributions in full on or before the contribution day. If you fail to pay mandatory contributions in full by the contribution day, we are required by law to report any outstanding contributions or late payment to the Mandatory Provident Fund Schemes Authority (MPFA). Please ensure that you have sufficient funds in your designated bank account for cheque clearance or debiting to avoid any surcharge and/or financial penalties.
If the exact date of birth is not displayed on an employee's HKID card, until when am I required to make MPF contributions for him/her?
If there is no exact date of birth displayed on the employee's HKID card, you are required to make MPF contributions for him/her up to 31 December of the year in which he/she reaches the age of 65.
When to report the back payments to my employee as relevant income and make the corresponding mandatory contributions?
Back payments (eg payments relating to an earlier period perhaps arising from a salary adjustment or a time lag between the ascertainment and payment of commissions, tips or bonuses) to a relevant employee are not relevant income, in general, until the contribution period in which the back payment is ascertained and paid. For example, the back payments is ascertained and paid to your employee in July of a year, you are required to report the back payments as part of the relevant income and make the corresponding mandatory contributions in the contribution period of July of that year.
You can refer to the Guidelines on Scheme Operations IV.12 'Guidelines on Relevant Income in Respect of a Relevant Employee' issued by Mandatory Provident Fund Schemes Authority for information.
What are some of the misconceptions in handling contributions that I need to pay attention to?
||Proper ways for handling contribution
I have submitted the contribution on time because I have already sent out the cheque to trustee on the contribution day.
|- Allow sufficient time and postage for mailing to make sure trustee receives cheque and remittance statement on or before contribution day
- The postmark date on the envelope will not be regarded as the contribution receipt date
- Make sure the information on the cheque is correct and retain sufficient amount in the bank account for cheque payment or for direct debit. It will be regarded as default contribution if trustee fails to present the cheque or fails to receive payment
|Submission by drop-in box in branch
I have put the cheque into the collection box in the branch nearby on the contribution day.
|- Contribution cheque must be put into MPF drop-in box in designated HSBC branches
- Please check with our MPF specialists or contact customer service hotline for the designated branches with MPF drop-in box
- You can also find the list of branches with MPF drop-in box by click here
|No relevant income for the employee
I do not need to include the employee in the remittance statement because there is no relevant income and contribution in a particular contribution period for the employee.
|- It is still required to include the employee and report '0' for relevant income in the remittance statement even if there is no relevant income and contribution for the employee in a particular contribution period
I only need to report the last contribution for the employee during member termination.
|- An employer must notify the trustee that an employee has ceased to be employed by reporting it in the remittance statement in the month in which the employee ceases to be employed, or by using Employee Termination Information (Form code: INZ3 or INVY) for such purpose
- The employer may be regarded as default contribution for the terminated member in next contribution period if the employer failed to report termination details
|Filing an objection
I will try to file an objection before payment for any surcharge to see if the MPFA will withdraw it.
|- You should contact your trustee immediately if there is any late contribution or error in contribution details and settle the late contribution and relevant surcharge at the same time
- By law, employer is required to pay surcharge should there be any default contribution, either because of late submission or insufficient contribution payment
We understand employers would like to make MPF contribution simple and flexible. In HSBC MPF, we offer several electronic methods in handling MPF contribution at your convenience. Please feel free to contact our MPF specialists in branch or by contacting HSBC MPF Employer Hotline on 2583 8033 for more details.
How can I make an appeal for the contribution surcharge?
If you wish to object to Payment Notice for Outstanding MPF Contributions and Contribution Surcharge, you must notify the MPFA by submitting a "Contribution Surcharge Objection Form" together with all the relevant supporting documents within 14 days from the date of the notice.
The "Contribution Surcharge Objection Form" can be downloaded from the MPFA's website.
How to classify casual and non-casual employees?
- Casual employees are those engaged in the construction or catering industries, and are employed either on a day-to-day basis or for a short-term fixed period of less than 60 days, and aged between 18 and 65.
- Non-casual employees are those (other than casual employees) aged between 18 and 65 and employed for 60 days or more under a continuous contract of employment.
Are part-time staff casual employees?
In general part-time staff are not casual employees, they are non-casual employees. However, if they are engaged in the construction or catering industries, and employed on a day-to-day basis or for a short-term fixed period of less than 60 days, then they are casual employees.
My company is a trading company and employs an office assistant on a daily basis. Is he/she a casual employee?
No. He/She is a non-casual employee because he/she is not engaged in the construction or catering industries
My retaurant employs some monthly paid waiters who have now been working for more than 60 days. Are they casual or non-casual employees?
Although your employees are engaged in the catering industry, they are non-casual employees because they are neither employed on a daily basis nor for a short-term fixed period of less than 60 days.
If my employees refuse to complete an Employee Application From to participate in MPF, what should I do?
You may explain to your employees that you are obliged to enrol them into an MPF scheme and deduct the contributions from their salary as required by the MPF legislation. To comply with the legislation, you must enrol them into the MPF scheme by providing their personal details such as name, HKID number, date of birth and date of employment to the MPF provider. However, if they do not complete an Employee Application Form, their contributions will be automatically invested into the Default Investment Strategy.
In the above situation, you can enrol your employees in the New Employees Section of the Remittance Statement.
My employees have not completed their three months probationary period. Do I need to enrol them into my MPF scheme?
If your employees have been employed for 60 days, you need to enrol them into an MPF scheme. Their enrolment is not dependent on their probationary period.
Please note that if your employees are casual employees, you will need to enrol them into an MPF scheme within 10 days of employment. If they cease employment within 10 days, you still need to arrange the enrolment and make contributions for the days worked.
If an employee is recruited on a one-year contract basis, do I need enrol him/her into MPF?
Yes. Contract basis employees are not exempt from MPF, unless they belong to one of the categories of exempt persons defined under the MPF legislation.
If a person is employed by two companies, does he/she need to contribute for both employment?
Yes. They need to join the 2 companies' MPF schemes and make contributions for each employment respectively.
Is it necessary for me to sign the Employee Application From?
You are required to confirm the accuracy and completeness of the enrolment information by signing in the designated area(s) on the Employee Application Form or by submitting the Employee Application Form in such manner as the approved trustee may require. If you are not an individual, the form has to be signed by a duly authorised signatory. In the circumstances that an Employee Application Form is not properly completed, trustees may refuse to process the enrolment of the employee(s) concerned. Please be reminded that an authorised signatory is required to sign the Employee Application Form, a company chop only is not accepted in lieu of such.
What are the consequences if my employee forgot to sign his/her Employee Application From?
Employee's signature on the Employee Application Form will be used as the specimen record of the employee's MPF account. In any occasion that we do not have the specimen record but receive any written instruction from the employee, we have to follow up with him/her for verification before the processing of his/her instruction. A delay may occur as a result. Please remind your employees to read and check through all the information on the Employee Application Form and then sign the 'Declaration and authorisation' in member section in order to facilitate the processing of their instructions in future.
What should I do if an employee does not possess a Hong Kong Identity Card?
Generally, the Hong Kong Identity Card number is used as the identification number of an MPF account. If your employee does not possess a Hong Kong Identity Card, he/she should provide the Passport number as an alternative. When you handle the MPF administrative issues (such as reporting and payment of MPF contributions, reporting termination details, handling severance payments or long service payments) for your employees, please provide the identification number which is the same as the one registered in our records. Please note that, using a non-registered identification number for any instruction for an MPF account may result in unnecessary error or delay in processing. If there is any update on the identification number, please provide written notice together with copy of relevant supporting documents to us for processing.
For the purpose in arranging the enrolment for your employees, if the 60th day of an employee's employment fall on a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, when is the last date of the 60-day permitted period?
When the 60th day of the employee's employment falls on a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, the last date of the 60-day permitted period will be postponed to the following day which is not a Saturday, a public holiday, a gale warning day or a black rainstorm warning day.
Is it a must for a new employee to choose the Default Investment Strategy (DIS) when he/she sets up a new account?
No. New employees can choose to invest his/her new contributions and accrued benefits transferred from another registered scheme to (1) DIS or (2) One or more constituent funds of his/her own choice from the list under the employee application form. DIS will only be a default investment arrangement to employees who set up a new MPF account without providing a valid investment choice.
Making First Mandatory Contributions for New Employees
When and how should an employer report the first mandatory contributions for new employees?
According to the MPF legislation, it is employers' responsibility to enrol new employees into an MPF scheme by submitting Employee Application Form for employees who have been employed for 60 days (for non-casual employees) / 10 days (for casual employees). You are also required to submit the Remittance Statement and make the first mandatory contributions for your new employees on or before the tenth day after the last day of the month during which the 60-day permitted period ends (for non-casual employees) / on or before the tenth day after the last day of the contribution period in which the 10-day permitted period ends (for casual employees). Failure to remit mandatory contributions on time and in full may be subject to surcharge and penalty imposed by the Mandatory Provident Fund Schemes Authority.
If the permitted period end date or the 10th day after the last day of the month which the permitted period ends is a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, when is the contribution day of the first contribution for the employee?
The contribution day of the first contribution is the 10th day after the last day of the month during which the permitted period ends. If the contribution day is a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, then it means the following day which is not a Saturday, a public holiday, a gale warning day or a black rainstorm warning day.
However, for the purpose of determining the contribution day of the first contribution, there would be no postponement of the permitted period end date even if the last day of the permitted period is a Saturday, a public holiday, a gale warning day or a black rainstorm warning day.
Should I wait until the new employee's records shown on the Remittance Statement to make the first mandatory contributions for new employees?
If you are due to make the first mandatory contributions for your new employees, but their records are not yet being shown in the paper or electronic remittance statement, you must report the first mandatory contributions for your new employees under the 'New Employee Section' of the remittance statement and settle the contributions on time. You should not wait until their records are being shown in the remittance statement before making the first contributions. Failure to remit mandatory contributions on time and in full may be subject to surcharge and penalty imposed by the Mandatory Provident Fund Schemes Authority.
If you have not received the paper or electronic remittance statement, you may click here to download the blank paper remittance statement in order to report and pay the first mandatory contributions for your new employees on time.
MPF forms and documents
Where should I submit the MPF forms and documents?
There are two authorised channels for submission of MPF forms and documents:
(1) By mail to the administrator of HSBC MPF scheme:
Retirement Benefits Administration
The Hongkong and Shanghai Banking Corporation Limited
PO Box 73770 Kowloon Central Post Office
(2) Or placing your MPF forms and documents to 'HSBC MPF Drop-in Box' at designated HSBC branches.Please click here for the latest list of designated branches with 'HSBC MPF Drop-In Box'.
Can I submit the MPF forms and documents to an HSBC branch?
Yes. You can submit your MPF forms and documents to designated branches with MPF drop-in box. Please click here to view the list of branches with MPF drop-in box.
Please be aware that employers should NOT hand in any MPF documents (in particular for those paper remittance statement and cheque payment (if any) which must be submitted on time according to the MPF legislation) to unauthorised channels. Unauthorised channels include but not limited to:
(1) the staff at service counters at the branches,
(2) the branches without 'HSBC MPF Drop-In Box', or
(3) other collection boxes in the branches (for examples, the collection boxes for cheque payment).
Any submission of the MPF documents to unauthorised channels will not be forwarded to the MPF department for processing directly and it may take a longer time for the documents to be transferred to the MPF department. While the receipt date by the MPF department will be stamped only when the documents reach the MPF department, employers and/or self-employed persons please be cautious that this will result in delay in receiving and processing the paper remittance statement or other instructions by the MPF department. Any failure to pay mandatory contributions in full and on time to a trustee incurs a 5% surcharge on the outstanding mandatory contributions, along with the possibility of a financial penalty and even imprisonment by the MPFA. You may refer to the MPFA's website www.mpfa.org.hk for further details of offences and penalties.
Refund of Long Service Payment or Severance Payment
My employees question the company's rights to utilise their accrued benefits for offsetting Long Service Payment or Severance Payment (LSP/SP) made to them. Which section of the legislation should I quote?
The employer's rights to offset LSP/SP from accrued benefits derived from the employer's contributions are provided in section 31IA (Gratuity or benefit to be reduced by amount of severance payment in certain cases) and 31YAA (Gratuity or benefit to be reduced by amount of long service payment in certain cases) of the Employment Ordinance and section 12A of the Mandatory Provident Fund Schemes Ordinance.
What should I do and need to pay attention when I prepare to pay Long Service Payment or Severance Payment (LSP/SP) to employees, especially to employee who is approaching age 65 or about to retire?
When an employer prepares to pay LSP/SP to employees, including those who have reached/will reach age 65 and have ceased/will cease employment, and intend to make a potential claim to utilize the vested accrued benefits derived from the employer’s contributions (including mandatory and voluntary contributions) in the employees’ MPF account to offset LSP/SP, the employer is recommended to check the MPF account balances of the employer’s portion of the relevant employees in advance in order to arrange the LSP/SP for the employees accordingly.
Employees under employment are allowed to request for a claim of the MPF accrued benefits under specific grounds according to the MPF legislation, including reaching age 65 and terminal illness. To protect data privacy of members, trustees will not inform employers of any members’ claim of accrued benefits under these circumstances. If you prepare to make application to the trustee for the LSP/SP offset, you should approach your trustee as soon as possible to check the amount of MPF accrued benefits derived from employer’s contributions in respect of the relevant employee because it is possible that the accrued benefits have been entirely or partially withdrawn by the relevant employee and the employer may not be able to reimburse the LSP/SP payment from the employer's contribution in employee’s MPF account.
To check for MPF account balances of the employer’s portion due to the purpose of offsetting LSP/SP, the employer should send the request in writing to HSBC MPF to obtain information on the balances of employer’s portion held in the employees’ MPF account. Should you wish to obtain the template of the written request or have any other enquiries, please contact your customer service manager or call HSBC MPF Employer Hotline on 2583 8033.
As an employer, what can I do if the employee has already partially or entirely withdrawn the MPF accrued benefits and I need to offset LSP / SP?
If an employee has already partially or entirely withdrawn the MPF accrued benefits derived from employer’s contributions, employer may arrange with the employee to pay any remaining outstanding LSP/SP amount due to the employee, after taking into account of the withdrawal amount of MPF accrued benefits derived from employer’s contributions by the employee against the original entitlement amount of LSP/SP in respect of the employee.
After I have paid the Long Service Payment or Severance Payment (LSP/SP) to employees, how can I reimburse the LSP/SP paid from my employees’ MPF account?
Once the employer has paid the LSP/SP to the terminated employees, especially for employees who retire at age 65, and requests to reimburse LSP/SP paid from the employees’ MPF account, the employer should complete and submit the Payment Proof for Long Service Payment / Severance Payment form (INLS) signed by both the employer and relevant employee to HSBC MPF as early as possible. If HSBC MPF had not received the request for LSP/SP offset from the employer but a valid transfer or claim application was received from the relevant employee, the accrued benefits under the employee’s account will be transferred or paid according to the instruction from the employee. HSBC MPF will be unable to process the request of LSP/SP offset after the accrued benefits have been transferred out or paid.
There are different types of contributions under member's MPF account, is there any offset sequence when HSBC handling the request for refund or claim of long service payment or severance payment?
Yes. The member's vested accrued benefits derived from the employer's contributions will be used for the offsetting according to the following sequence:
- Employer voluntary contributions (if applicable)
- Employer's ORSO transfers (if applicable)
- Employer special contributions (if applicable)
- Employer mandatory contributions
How will the refund be paid to my company?
We'll send you a crossed cheque.
Should I include payment in lieu of notice as relevant income when I calculate the last contributions?
No. Payment in lieu of notice is made as a compensation for employment termination rather than a consideration of services rendered. It is therefore not treated as relevant income for MPF purposes. More information about the definition of relevant income.
Are employer's mandatory and voluntary contributions deductible expenses under profits tax?
Yes. The tax deductible amount is up to 15% of employees' total emoluments for the period to which the contributions relate.
Will other forms of Long Service Payment or Severance Payment (LSP/SP) supporting document be accepted?
Yes. However, please note that all information as shown on the INLS form must be included in your supporting documentation for your refund request to be processed.
Do I need to pay Long Service Payment or Severance Payment to my employees?
You may visit the Labour Department's website for information about the Labour Legislation (Employment Ordinance).
How should I calculate Long Service Payment or Severance Payment?
You may visit the Labour Department's website for information about the Labour Legislation (Employment Ordinance).
My company has dismissed an employee. Should I report the termination code as 'DS - Summary dismissal'?
'DS' is regarded as dismissal with cause, ie dismissal without notice or payment in lieu of notice if an employee, in relation to his/her employment:
- willfully disobeys a lawful and reasonable order,
- misconducts himself/herself,
- is guilty of fraud and dishonesty, or
- is habitually neglectful in his/her duties.
If an employee's employment is terminated due to DS, the employee will not be entitled to any employer's voluntary contributions and employer's ORSO transfers.
However, if the employee is dismissed not with cause as above, you should use the termination code 'WB - Resignation'.
How can I report an amendment to the employee termination that was recently reported via our Remittance Statement?
Please call our hotline at +852 2583 8033 for assistance.
How can I request a refund of unvested benefits?
Please send us a written request which is signed by an authorised person at your company.
When should I make the last mandatory contribution for an employee who ceases employment?
Whenever an employee ceases employment, you are responsible to make the last mandatory contribution for the terminated employee timely:
Non-casual employees - By the 10th day of the calendar month following the month in which employment is terminated.
Casual employees in Master Trust Schemes - regardless of payroll cycle, the last contributions should be fully paid on or before the 10th day after the date of cessation of employment of the casual employee.
When should I report an employee's termination details?
Whenever an employee leaves a company, it is your responsibility to report the termination details to us timely:
Non-casual employees - By the 10th day of the calendar month following the month in which employment is terminated
Casual employees in Master Trust Schemes - Within 30 days after the last day of employment
If I report the termination of an employee on time, what is the advantage?
Timely and proper reporting of termination of an employee to the trustee is very important. It may save time on the necessary follow-up actions that involved for the below administrative processes and avoid report of default contributions to the MPFA:
- Refund of Long Service Payment or Severance Payment from MPF account of the employee;
- Calculation of vested benefit of accrued benefit derived from the employer voluntary contribution in respect of the member for the refund of any unvested benefit to employer and/or payment of vested benefit to employee;
- Request for transfer or claim of accrued benefits from the employee.
Therefore, if there are any records of any terminated employee still being found on the latest remittance statement, you should provide the relevant employee's termination details to us as soon as possible for updating their records.
How could I report employee termination details to HSBC MPF?
You are responsible to make the last mandatory contributions and report the termination details of your employees who cease employment on time. You can report an employee's termination via the relevant section in the Remittance Statement. Termination details of existing employees should be reported in 'Termination Details' under the 'Existing Employees Section'. If the records of the employees concerned are not yet shown in the Remittance Statement, you can fill in the termination details on 'Termination details' section under the 'New Employees Section'.