How to handle the staff have no or wrong MPF contribution?

Why and How to handle the staff have no or wrong MPF contribution?

Sometime, you may find the EE and ER MPF contribution amount are "wrong" or become 0 and you cannot see the staff in the MPF Remittance report. You need to think of the following situations to see if the amount is correct.

1. The staff is below 18 or over 65

   • if yes, both ER and EE no need to make the contribution.

   • for staff reach 65 in the mid-month, the EE and ER MPF contribution would be calculated in pro-rated basis from the 1st day of the month to the day before the staff birthday.
     E.g staff reach 65 on 11 Apr 2021 with salary HKD15,000/monthly, then only 5% of the salary amount from 1 Jan to 10 Apr need to make the contribution, i.e 15000/30*10*5%=HKD250. After 12 Apr 2021, both ER and EE no need to make MPF contribution anymore.
   • System would have reminder, a red "18" or "65" beside the name of the staff when you generate their payroll
     

2. The total payroll amount is less than HKD7,100

   • if yes, EE no need to make the contribution.
     

3. The staff employment period is within the MPF contribution holiday

   • Staff have 30 days contribution holiday. In the system, the system would calcuate the the first ER and EE Contribution Commencement Date in the staff placement profile automatically according to the staff join date.

     • If you update the join date after the placement profile is created or change the the date before wrongly, you need to update the date again.
       
       

     • If you see the ER and EE Contribution Commencement Date is in year of 203X, please go to the Applicant profile of the staff and check the staff Birth Date as you may wrongly input the birth year. Please update the Birth Date and then update the ER and EE Contribution Commencement Date.

4. The pay type amount should not be included in the relavant income

   • if yes, go to Payroll->Job order Template->choose the template-> find the pay type
   • Disable "Is Relevant Income"​.
   • Then recalculate the payroll

For more details of the MPF calculation, you can take a look at the following pages from MPFA

1. https://www.mpfa.org.hk/en/mpf-system/mandatory-contributions/employees
2.https://www1.mpfa.org.hk/tch/legislation_regulations/legulations_ordinance/guidelines/current_version/scheme_operations/files/IV_11_c.pdf