【MPF】Mandatory Provident Fund Schemes Authority proposes stricter penalties! Recommends adding a "Second-Level Surcharge" to combat overdue contributions, urging working people to register for MPF for easy access to contribution records

The Mandatory Provident Fund Authority (MPFA) has proposed the introduction of a second-tier late contribution surcharge. MPFA Chairman Lau Mak Ka-hin stated in a blog that this aims to encourage non-compliant employers to promptly pay overdue contributions and surcharges, thereby enhancing the protection of employees’ MPF rights. Consultations will be held with labor groups, chambers of commerce, and other stakeholders to gather feedback, including on the appropriate timeline and levels for the introduction of the second-tier charge. The goal is to submit the consultation results and specific recommendations to the government by mid-year, in preparation for the next steps in the legislative process.

She explained that under current legislation, regardless of how long the contributions are overdue, the surcharge is uniformly calculated at 5% of the outstanding amount. Delaying the payment of overdue contributions and surcharges not only affects the rights of employees who are owed contributions but is also unfair to law-abiding employers. Therefore, it is recommended to introduce a second-tier surcharge to impose additional fees on non-compliant employers. The contributions and surcharges will be fully credited to the MPF accounts of the affected employees.

Call to Utilize “MPF Easy” for Enhanced Protection

She also urged employees to register for “MPF Easy” as soon as possible, since employers will receive notifications after each contribution processing is completed. This not only helps to identify and address non-compliance cases more quickly but also allows employees to grasp their contribution status early, safeguarding their MPF rights.

Average Monthly Issuance of Approximately 31,000 “MPF Contribution and Surcharge Payment Notices”

In the 2025/26 fiscal year, as of February this year, the average mandatory contributions to the MPF amount to approximately 5.5 billion per month. The MPFA issues approximately 31,000 “MPF Contribution and Surcharge Payment Notices” each month, of which only about 16% of non-compliant employers pay the overdue contributions and surcharges as required within the 14-day deadline. Based on past experience, about half of the non-compliant employers settle their outstanding contributions and surcharges within approximately four months after the contribution dates.

			▲ Status of Overdue MPF Contributions as of February in the 2025/26 Fiscal Year

Lau Mak Ka-hin emphasized that the MPFA will continue to actively follow up on cases of overdue contributions after the remaining notices have expired and will take legal action against non-compliant employers who continue to default on contributions and surcharges, pursuing outstanding payments through civil litigation on behalf of the affected employees. However, each year, over ten million in contributions and surcharges remain unrecoverable due to circumstances involving employers who have been liquidated or gone bankrupt.

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