You're required to enrol your non-casual employees into your MPF scheme unless they are exempt persons.
Non-casual employees are:
- aged between 18 and below 65
- employed for a continuous period of 60 days or more
- full-time and part-time
You're required to enrol your employees into an MPF scheme within the 60-day permitted period (first 60 days of employment).
If the last day of the 60-day permitted period falls on a Saturday, public holiday, or gale or black rainstorm signal, the deadline for enrolment will be extended to the following day which is not a Saturday, public holiday, or gale or black rainstorm signal.
See below for the special dates for enrolling newly employed non-casual employees.
Pay attention to the special dates in each year when making enrolments and first-time contributions for newly employed non-casual employees
Employers are obligated to enrol new employees into MPF schemes and make mandatory contributions in full and on time. Otherwise, a financial penalty and/or surcharge may be imposed by the MPFA for late enrolment and/or late payment of contributions. It is essential to understand the MPF enrolment deadline and the correct day to make the first-time contributions for your newly employed non-casual employees.
The first-time contributions should be paid to your trustee on or before the 10th day after the last day of the calendar month on which the 60th day of employment falls.
However, there are some special days each year that employers should pay attention to. That is, when the MPF enrolment deadline falls on the last calendar day of a month which is a Saturday, a public holiday, a gale warning day or a black rainstorm warning day, making it necessary to extend the MPF enrolment deadline for the new employees to the first business day of next month. However, the 'first-time contribution day' for the first contributions of employee remains unchanged.
For instance, if the new employee's 60th day of employment is Saturday, 30 April 2016, the deadline for enrolment of this employee will be extended to next business day (that is 3 May 2016), which is not a Saturday, a public holiday, a gale warning day or a black rainstorm warning day. However, there is no change to the end date of the permitted period (for the purpose of calculating the contribution day) and no postponement of the 'first-time contribution day', herein, the deadline for employer to pay the first-time contributions in full for this new employee remains unchanged on 10 May 2016.
||The 60th day of employment
||Deadline for enrolment
||Correct first-time contribution day
2 December 2015
|30 January 2016 (Saturday)
||1 February 2016 (Monday)
||11 February 2016 (Thursday)
|3 December 2015
||31 January 2016 (Sunday)
||1 February 2016 (Monday)
||11 February 2016 (Thursday)
|2 March 2016
||30 April 2016 (Saturday)
||3 May 2016 (Tuesday)
||10 May 2016 (Tuesday)
|1 June 2016
||30 July 2016 (Saturday)
||1 August 2016 (Monday)
||10 August 2016 (Wednesday)
|2 June 2016
||31 July 2016 (Sunday)
||1 August 2016 (Monday)
||10 August 2016 (Wednesday)
|2 November 2016
||31 December 2016 (Saturday)
||3 January 2017 (Tuesday)
||10 January 2017 (Tuesday)
Consequences of failing to enrol employees
Employers who fail to enrol employees in an MPF scheme are liable to financial penalty and even imprisonment. Visit MPFA's website at www.mpfa.org.hk for details.
Ways to enrol an employee
You should provide your new employees with:
- Member Service Guide
- Guide them through your HSBC MPF scheme, their constituent fund choices, management fees under the scheme and member service
- Employee Application Form
- Employees should complete and return the signed Employee Application Form, otherwise, the contributions will be invested in accordance with the Default Investment Strategy (DIS)* and the relevant MPF correspondence cannot be sent to your employees. After we've received and processed their application form, the contributions will be allocated according to employee's investment option specified on the application form. The relevant MPF correspondence will also be sent to your employee's residential address in accordance with the information provided on the application form.
- Change of Additional Voluntary Contribution Arrangement Form (IN55)
- Employees can give or change their regular additional voluntary contribution instructions.
There are different ways to enrol a new employee:
1. Employee Application Form
Submit the Employee Application Form, which must be signed by the employer's authorised signatory and the employee, to set up an MPF account for your employee before the enrolment deadline.
2. Paper-based remittance statement
You can enrol your employees into HSBC MPF schemes by providing their personal details, such as name, sex, date of birth, identity type/no., member type, date joined and class no. etc in 'New Employees Section' of the remittance statement.
Note: Although you have enrolled your new employees into HSBC MPF schemes by paper-based remittance statement, you still need to return your employees' completed and signed Employee Application Form to us so that we can set up a complete MPF account for them.
3. Electronic remittance statement via HSBC Business Internet Banking (BIB) MPF Service
You can enrol your employees into HSBC MPF schemes by providing their personal details, such as name, sex, date of birth, identity type/no., member type, date joined and class no. etc under the page on 'Prepare Remittance Statement - Add/Amend New Employee' via HSBC BIB MPF Service.
Note: Although you have enrolled your new employees into HSBC MPF schemes by electronic remittance statement via HSBC BIB MPF Service, you still need to return your employees' completed and signed Employee Application Form to us so that we can set up a complete MPF account for them.
4. Other electronic means
If you have developed the direct file interface with HSBC MPF, you can enrol your employees into HSBC MPF schemes through the interface file by providing the required information and using the agreed format.
Note: Although you have enrolled your new employees into HSBC MPF schemes by other electronic means, you still need to return your employees' completed and signed Employee Application Form to us so that we can set up a complete MPF account for them.
Points to note for enrolling a new employee:
- If you have enrolled your new employees into HSBC MPF schemes through ways other than using the Employee Application Form, you still need to return your employess' completed and signed Employee Application Form to us so that we can set up a complete MPF account for them. The contribution of your new employees will be invested in accordance with the DIS under this circumstance.
- You should give the Employee Application Form to your employees as soon as possible to give them sufficient time to study the constituent funds available in HSBC MPF schemes and decide on their investment portfolio.
- Ensure your employees complete, sign (including the 'Declaration and authorisation' in member section of the application form) and return the Employee Application Form to you. If your employees do not wish to make a fund choice or do not provide a valid investment option and/or do not sign on the application form, all contributions will be invested in accordance with the DIS*. If there is no valid residential address provided by employees on the application form, the relevant MPF correspondence cannot be sent to them.
- Employers are required to confirm the accuracy and completeness of the enrolment information by signing in the designated areas(s) on the Employee Application Form. Otherwise, the application form has to be signed by a duly authorised signatory. Please ensure you complete and sign the 'Employer section' on the application form, a company chop only is not accepted in lieu of such.
- In the circumstances that the Employee Application Form is not properly completed and signed by employer and employee, we may refuse to process the enrolment of the employee(s) concerned.
- If your employees fail to return the completed and signed Employee Application Form to you, you still have to enrol your employees before the end of the permitted period and make the full contributions to fulfill your obligation as an employer.
- You should always enrol your employees with their Hong Kong Identity (HKID) Card.
The HKID card number should be used as the identification number of an MPF account. Passport numbers should be given only if your employees do not possess a HKID card. Please enclose a copy of the passport and provide the place of issue.
When you handle 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 their identification number which should be 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 a written notice together with a copy of relevant supporting documents to us for processing. You should also use the updated information on managing your MPF contribution issue afterwards.
- Accuracy of the date of birth of your employees is very important as it determines the start day of contributions when the employee is at the age of 18 and the end day of contributions when the employee is at the age of 65 and the date of the annual de-risking process of your employee if the contributions of your employee are invested according to the DIS.
If your employee's HKID card contains the year of birth only and there is no other form of identity to prove the exact date of birth, 31 December should be used as the day and month.
If the HKID card contains the year and month but not the date and there is no other form of identity to prove the exact date of birth, the last day of the month should be used.
You may set up different pay centres for different payroll cycles. Ensure you enrol your employees into a correct pay centre, report and make the contributions to the correct MPF account of your employees.
To set up additional pay centres, submit a 'Pay Centre Set Up Form' (IN03).
* Contributions and/or any transfer-in monies will be invested in accordance with the DIS, then the DIS will be effected automatically if the Employee Application Form is incomplete, has not been signed, returned, or processed at the time when we process the contribution allocation. The DIS aims to balance the long term effects of risk and return through investing in 2 constituent funds, namely the Core Accumulation Fund and the Age 65 Plus Fund, according to the pre-set allocation percentages at different ages. The DIS will manage investment risk exposure by automatically reducing the exposure to higher risk assets and correspondingly increasing the exposure to lower risk assets as the member gets older.
Arrangement after enrolment
- For employees with a completed employee application form processed
After we've received and processed the Employee Application Form, the contributions will be invested according to the valid investment option specified by the employee on the application form.
A 'Notice of Participation' (or an 'MPF Membership Certificate' before 1 August 2015) and an enrolment confirmation notice in sealed a envelope will normally be sent to you for distribution to your employees. Please distribute the documents to your employees within 7 business days upon receipt.
A Member Benefit Statement will be delivered to your employee directly.
- For employees enrolled via other methods without employee application form or with incomplete employee application form
Employees who have enrolled into your MPF scheme via paper-based remittance statement, electronic remittance statement or other electronic means but without returning a completed and signed Employee Application Form or an incomplete Employee Application Form has been returned, the setting up of the MPF account for your employees will be regarded as incomplete.
Submit the employee's Employee Application Form so we can set up a complete MPF account. The Notice of Participation and the enrolment confirmation notice, future benefit statement of the employee will be sent to you for distribution to the employee. Other MPF correspondences cannot be sent to your employees. The contributions will be invested in accordance with the DIS*.
- Enrol your employees within the regulatory deadlines to avoid penalties for failing to comply with MPF legislative requirements.
- Ensure the information provided on the Employee Application Form is complete and accurate, and signed by both the employer and employee.
- Submit your new employees' Employee Application Forms as soon as possible to protect their interests and enable us to provide them with relevant MPF services.