On 14 June 2011, the Government presented to the Legislative Council the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 2) Notice 2011 and the Mandatory Provident Fund Schemes Ordinance (Amendment of Schedule 3) Notice 2011 (together the "Amendment Notices").
The Amendment Notices propose, amongst other things, to increase the monthly minimum relevant income level ("Min RI") from HK$5,000 to HK$6,500 and the monthly maximum relevant income level ("Max RI") from HK$20,000 to HK$25,000 for mandatory provident funds ("MPF").
Since the implementation of the MPF system in 2000, the Mandatory Provident Fund Authority ("MPFA") has reviewed the Min RI and Max RI levels on three previous occasions but has refrained from revising the Min and Max RI levels. Its decision to increase the levels now is in consideration of the introduction of the statutory minimum wage ("SMW") from 1 May this year and to take into account the hourly SMW rate and median working hours of the low-income group, so that they continue to be spared the burden of making mandatory MPF contributions.
With the increase in the Min RI and Max RI, approximately an additional 333,600 employees and self-employed persons would be required to make mandatory MPF contributions. It is proposed that the revision to the Min RI would come into effect on 1 November 2011, and the revision to the Max RI would be effective from 1 June 2012.