Understanding the clauses of the mandatory provident fund hong kong
The mandatory requirement
Considered the richest financial hub in the world, Hong Kong has a lot to offer its working classes. One of those is mandatory provident fund hong kong. Popularly called MPF, it covers the mandatory savings scheme for all of the working class between the age group of 18-64 years. Initiated in the year 1995, its primary goal is to safeguard the interests of such people after they retire from their jobs, and enjoy their dream retirement phase.
As an employer and employee, it is mandatory to follow all of the rules diligently to avoid any legal penalties.
There are three types of MPF:
- Master Trust Scheme, which pools the contribution from employers, employees, and self-employed individuals.
- Employer-sponsored schemes, which are initiated by a specific corporation for the people associated with them. Such is a cost-effective option when compared to the generalized one.
- Industry scheme, which is meant for casual employees working in labor-intensive industries.
Following the regulations
Since mandatory provident fund hong kong has its own set of guidelines, thus many payroll service providers have equipped their packages to aid corporates and individuals. All you need to do is sign up for their services, and get all of the deductions set automatically for a monthly basis.
Therefore, it is highly advisable to go for these.