The monthly minimum relevant income level for Mandatory Provident Fund (MPF) has been increased from the original level of HK$5,000 to HK$6,500.

The amendment will take effect on 1 November 2011.

With effect from 1 November 2011 employees with a monthly relevant income of less than HK$6,500 will not be required to make contributions to an MPF scheme.

So, employees whose monthly relevant income is more than HK$5,000 but less than HK$6,500, will cease to be required to make employees' mandatory contributions to an MPF scheme with effect from next month.

Employers, however, will continue to be obliged to contribute 5% of the relevant income in respect of all employees (other than those who are exempt), including those earning less than HK$6,500 per month.

Employers should take steps to update their payroll systems to reflect this change.