No MPF Contribution Record? Beware of Fines! | Article – HSBC VisionGo
As the employer, you need to make the payment for mandatory provident fund for employees every month.
As the employer, you need to make contributions to the mandatory provident fund for your employees every month. But that’s not enough!
Did you remember to provide monthly contribution records to your employees as well? Each month, after remitting contributions to their trustee, employers should also provide each employee with a monthly contribution record within seven working days. The information required to be shown in this written record includes:
- Employee’s relevant income amount
- Employer’s and employee’s mandatory contributions
- Employer’s and employee’s voluntary contributions (if any)
- The date on which contributions were paid to the trustee
To save administrative costs, many employers may choose to include the above-required information in the payslips that they provide to their employees. It’s not only convenient for HR’s daily operations but also help employees check all payment items.
An employer who fails to provide his employee with a monthly contribution record is liable to a maximum fine of $50,000. The Mandatory Provident Fund Schemes Authority also specified that as long as the information is complete, this arrangement is perfectly fine as the monthly pay-record does not necessarily have to be a separate document.
Our professional HRM system — Workstem, provides payroll functions that can help you calculate and generate employees’ payslips including MPF payment details automatically. Employers can also check every month’s MPF billing details after successful calculation.
For employees who join in the Industry Schemes, the employer needs to provide a monthly contribution record to employees within 7 working days after the payment was made.
(The article on this website is intended to be for reference and general information purposes only. Workstem does not warrant or represent that such information is complete, accurate or up to date. It should not be treated as a complete and authoritative statement of law or court practice, or a substitute for professional legal advice.)