MPF for Part-Timers and Casuals: The 60-Day Rule

At a glance

The rules, limits and exemption details are as most recently published by the MPFA.

How is the 60-day rule counted?

What counts is the period of employment, not how many days were actually worked.

So a part-timer coming in one day a week from March to June has been employed for over 60 days, and contributions are due. “They only work four days a month” does not take them out of it.

And the employer contributes from the employee’s first day, while the employee has a 30-day contribution holiday. So even where enrolment is only confirmed on day 61, the employer’s obligation is backdated to day one.

This is where most people miscalculate — assuming contributions start after 60 days. In fact it is “after 60 days it becomes certain that enrolment is required, and the employer’s contributions from day one have to be made good”.

Construction and catering: a different set of rules

These two industries have industry schemes, designed for casual employees who move between sites frequently.

The difference: a casual employee under an industry scheme contributes even if employed for fewer than 60 days. The 60-day exemption does not apply.

The reason is practical — a great many people in these industries work casually, changing employer daily. Under the ordinary rule they would never accumulate any MPF at all.

So in construction or catering you cannot decide not to contribute on the basis that someone worked two days. This is the most commonly missed point, and the one the MPFA checks most often.

Who is genuinely exempt?

The main categories:

• Under 18 or aged 65 and over
• Employed for fewer than 60 days (except casual employees under an industry scheme)
• People here on particular visas for a limited period of employment, or already members of an overseas retirement scheme
• Other categories specified in the legislation

If in doubt, treat contributions as due — over-contributing can be sorted out, while a shortfall has to be made good with a surcharge and may still attract a penalty.

How much, and by when?

5% each side, on relevant income, subject to a lower and an upper limit: below the lower limit (currently HK$7,100 a month) the employee does not contribute but the employer does; above the upper limit (currently HK$30,000 a month) both sides are capped at HK$1,500.

Each month’s contribution has to reach the scheme on or before the 10th of the following month. Late payment carries a surcharge of 5% of the amount outstanding, and serious cases carry fines and even imprisonment.

For the figures and the limits, see the MPF employer’s guide — it has the full contribution table.

The three most common gaps

One: employees on probation. People assume it only starts after probation. In fact the count begins on the first day of employment.

Two: a relative “helping out”. If they are paid and work under your direction, they are an employee, counted the same as anyone else.

Three: a freelancer you engaged yourself. This turns on the substance of the relationship — if they use your equipment, follow your instructions and work fixed hours, then even if it is called a “collaboration” it may in substance be employment. Where these cases are unclear, ask, because getting it wrong means employees’ compensation insurance and duties under the Employment Ordinance get missed along with it.

Set it up once and it becomes routine

The hard part of MPF is not the arithmetic; it is remembering the 10th of every month and the steps to take with each new hire.

And it is the same body of information as employees’ compensation insurance and the employer’s return — one hire triggers all three. Set it up once and every subsequent hire follows the same process.

Want someone to keep on top of the contributions and filings after you hire? Talk to us.

This is general information and does not constitute legal advice. Exempt categories, contribution limits and industry scheme details are as most recently published by the MPFA.