【MPF】The Mandatory Provident Fund Schemes Authority recommends adding a second-tier late payment surcharge for non-compliant employers, with a target to submit the proposal to the government by mid-year. Workers are urged to register for "MPF Easy" as soon as possible to check their employers' contribution records.

The Mandatory Provident Fund (MPF) Authority has proposed the introduction of a second-tier default contribution surcharge. The Chairman of the MPF Authority, Mr. Liu Mak Ka-hin, stated in a blog that this is to encourage non-compliant employers to settle their outstanding contributions and surcharges promptly, thereby enhancing the protection of employees’ MPF rights. All contributions and surcharges will be deposited into the MPF accounts of the affected employees.

He explained that under the current legislation, regardless of how long the contributions have been overdue, the surcharge is uniformly calculated at 5% of the outstanding amount. Delays in settling outstanding contributions and surcharges not only affect the rights of employees owed contributions but are also unfair to compliant employers. Therefore, he suggested introducing a second-tier surcharge to impose additional fees on non-compliant employers.

Call to Utilize “MPF Easy” for Enhanced Protection

He also urged employees to register for “MPF Easy” as soon as possible, since employers will receive notifications each time they complete processing contributions. This not only helps to quickly identify and address non-compliance cases but also allows employees to grasp their contribution status early and protect their MPF rights.

Approximately 31,000 “MPF Contribution and Surcharge Payment Notices” Issued Monthly

In the 2025/26 financial year, as of February this year, the average monthly mandatory MPF contributions were around HKD 5.5 billion. The MPF Authority issues approximately 31,000 “MPF Contribution and Surcharge Payment Notices” each month, of which only about 16% of non-compliant employers settle their outstanding contributions and surcharges as required within the 14-day deadline. Based on past experience, about half of non-compliant employers settle their debts and surcharges within approximately four months after the contribution due date.

			▲ Status of Outstanding MPF Contributions as of February in the 2025/26 Financial Year

Mr. Liu Mak Ka-hin emphasized that the MPF Authority will continue to actively follow up on cases where contributions remain outstanding after the notification period and will take legal action against non-compliant employers who continue to default on contributions and surcharges, filing civil claims in court on behalf of affected employees to recover the debts. However, every year, over HKD 10 million in contributions and surcharges cannot be recovered due to situations involving employers who have been liquidated or gone bankrupt.

He anticipates that the MPF Authority will consult labor groups and chambers of commerce and other stakeholders regarding the proposal for a two-tier surcharge, soliciting opinions on the appropriate duration and level for introducing the second-tier charge, with the goal of submitting the consultation results and specific recommendations to the government before mid-year, in preparation for the next steps in legislative work.

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