Hong Kong Ordinances

MANDATORY PROVIDENT FUND SCHEMES ORDINANCE - SECT 7A

Employer and relevant employees required to contribute to registered scheme

(Past version on 15/02/2002).
(Past version on 01/12/2000).

For the transitional provision relating to the amendments made by the
Mandatory Provident Fund Schemes (Amendment) (No. 2) Ordinance 2002 (29 of
2002), see section 15 of that Ordinance.

(1) An employer who, at the commencement of this section, is employing a
relevant employee must, for each contribution period occurring after that
commencement-

   (a)  from the employer's own funds, contribute to the relevant
        registered scheme the amount determined in accordance with subsection
        (3); and

   (b)  subject to subsection (7), deduct from the employee's relevant  income
        for that period as a contribution by the employee to that scheme the
        amount determined in accordance with subsection (4).

(2) An employer who enters into a contract of employment with a
relevant employee after the commencement of this section must, for each
contribution period occurring after the commencement of the employment-

   (a)  from the employer's own funds, contribute to the relevant
        registered scheme the amount determined in accordance with subsection
        (3); and

   (b)  subject to subsection (7), deduct from the employee's relevant  income
        for that period as a contribution by the employee to the scheme the
        amount determined in accordance with subsection (4).

(3) For the purposes of subsections (1)(a) and (2)(a), the amount to be
contributed by an employer for a contribution period is-

   (a)  in the case of a relevant employee (other than a casual  employee who
        is a member of an industry scheme), an amount equal to the prescribed
        percentage of the employee's relevant income for that period; and

   (b)  in the case of a casual employee who is a member of an industry 
        scheme, an amount determined by reference to a scale specified in an
        order made in accordance with subsection (6).

(4) For the purposes of subsections (1)(b) and (2)(b), the amount that an
employer is required to deduct in respect of a relevant employee for a
contribution period is-

   (a)  in the case of a relevant employee (other than a casual  employee who
        is a member of an industry scheme), an amount equal to the prescribed
        percentage of the employee's relevant income for that period; and

   (b)  in the case of a casual employee who is a member of an industry 
        scheme, an amount determined by reference to a scale specified in an
        order made in accordance with subsection (6).

(5) For the purposes of subsections (3)(a) and (4)(a), the prescribed
percentage is 5 per cent or, if some other percentage is prescribed by
the regulations, that other percentage. The regulations may prescribe
different percentages for those purposes.

(6) For the purposes of subsections (3)(b) and (4)(b), the Authority must, as
the occasion requires, prescribe by order published in the Gazette scales of
amounts of contributions by reference to amounts of relevant income of
casual employees who are members of industry schemes.

(7) An employer must not, in respect of an employee (not being a
casual employee) whose wage period-

   (a)  is not more than 1 month, make a deduction under subsection

(2)(b) in respect of the employee's relevant income earned for any wage 
period that commences on or before the 30th day of employment after the
relevant time;

   (b)  is more than 1 month, make a deduction under subsection (2)(b) in
        respect of the employee's relevant income earned for the period
        commencing from the relevant time and ending on the last day of the
        calendar month in which the 30th day of employment after the
        relevant time falls. (Replaced 29 of 2003 s. 4)

(8) An employer must ensure that contributions required to be made in
accordance with this section in respect of an employee of the employer are
paid to the approved trustee of the registered scheme of which the employee is
a member within the period and in the manner prescribed by the  regulations.

(9) A relevant employee does not have a claim against the employee's employer
only because that employer has, in accordance with this section, deducted
amounts from the employee's income and has paid those amounts to the
approved trustee of a registered scheme. However, nothing in this subsection
affects any entitlement that the employee has in respect of those amounts
under the rules governing the scheme.

(10) In this section-

"contribution period" (供款期)-

   (a)  in relation to an employer of a relevant employee (not being a
        casual employee), means each period for which the employer pays or
        should pay relevant income to the employee, and includes such a period
        occurring within, or that coincides with, the first 60 days of
        employment after the relevant time; and

   (b)  in relation to a relevant employee (not being a casual  employee)
        whose wage period-

        (i)    is not more than 1 month, means each period for which the
               employer pays or should pay relevant income to the employee,
               but does not include any wage period commencing on or before
               the 30th day of employment after the relevant time;

        (ii)   is more than 1 month, means each period for which the employer
               pays or should pay relevant income to the employee, but does
               not include the period commencing from the relevant time and
               ending on the last day of the calendar month in which the 30th
               day of employment after the relevant  time falls; and (Replaced
               29 of 2002 s. 4)

   (c)  in relation to an employer and a relevant employee who is a
        casual employee, means each period for which the employer pays or
        should pay relevant income to the employee; (Amended 2 of 2002 s. 7)

"relevant time" (有關時間) has the same meaning as in section 7(3);
(Amended 29 of 2002 s. 4)

"wage period" (工資期), in relation to an employee and his employer, means
the period for which the employee is paid, or should be paid, relevant  income
by the employer. (Added 29 of 2002 s. 4)

(11) This section is subject to sections 9 and 10. (Added 4 of 1998 s. 2)

"contribution period" (供款期)

"relevant time" (有關時間)

"wage period" (工資期)