Calculating Regular MPF Contributions

The ERMPFMN1 contribution is calculated at 5 percent of relevant income (5 percent of earnings that are included in the MPF calculation). MPF need only be calculated for employees between 18 and 65 years of age and only on the first 20000 HKD of relevant income for the month. For casual employees, contributions are calculated and paid from day one.

While contributions have to be calculated from the employees hire date, the first contribution to MPF for non-casual employees does not have to be made on or before the first contribution day after the sixty-day employment period ends.

The post processing formula MPF FM POST ERMN1 checks if it is the reporting period. If it is, the MPF contributions from the permitted period (sixty-day employment period) and the current period are totaled.

The formula MPF FM ERMN1 with generation control MPF GC ERMN1, using formula MPF FM RSLV ERMN1, resolves when the employee is between 18 and 65 (using formula MPF FM AGE 18-64), and the contribution is calculated on the first 20000 HKD of relevant income for the month.

Contributions for casual employees with the MPF VR CASUAL FLG are calculated and paid from day one.

The formula MPF FM EEMN1 BASE with generation control MPF GC EEMN1, using formula MPF FM RSLV EEMN1, resolves the deduction if the employee's service days are greater than thirty days (not within the holiday contribution period).

The MPF FM EEMN1 formula calculates the relevant income for regular employee mandatory contributions based on the following:

• Relevant income is prorated if the employee is a new hire or rehire. (Using MPF PO REVLNT INCM).

• Relevant income is prorated if the employee turns 18 years of age. (Using MPF PO 18TH BTHDAY).

• Relevant income is prorated if the employee turns 65 years of age. (Using MPF PO 65TH BTHDAY).

The bracket MPF BR MINMAX REVL retrieves the minimum and maximum amount associated with the period frequency.

The formula MPF FM ERVOL1 BASE with generation control MPF GC ERVOL1, using formula MPF FM RSLV ERVOL1, resolves based on the following:

• Relevant income is prorated if the employee turns 18 years of age— (Using MPF PO 18TH BTHDAY).

• If the employee is not 18 years of age, the bracket MPF BR MINMAX REVL retrieves the minimum and maximum amount associated with the period frequency.

The post processing formula MPF FM POST ERVOL1 checks if it is the reporting period. If so, the MPF contribution from the permitted period and the current period are totaled.

The generation control MPF GC EEVOL1, using formula MPF FM RSLV EEVOL1, calculates the relevant income for regular employer mandatory contributions based on the following:

• Relevant income is prorated if the employee turns 18 years of age. (Using MPF PO 18TH BTHDAY).

• If the employee is not 18 years of age, then the bracket MPF BR MINMAX REVL retrieves the maximum amount associated with the period frequency.

The formula MPF FM POST EEVOL1 prorates the deduction amount.