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2022-01-26 | OneStart Weekly
【4 mins Read】OneStart Weekly - MPF Points To Note

MPF Points to Note


After basic introduction about information of the Mandatory Provident Fund, our dear readers should have realized that MPF is a relatively complex topic. There are many different detailed rules and easily neglected deadlines. Therefore, it is of utmost importance that employers are finding reliable business centre to handle every arrangements for you MPF.

According to the Mandatory Provident Fund Schemes Ordinance, employers must arrange their employees to enroll in the MPF schemes and pay their respective contributions. The Mandatory Provident Fund Scheme Authority (MPFA) would investigate complaints and proactively inspect employers’ premises to detect any non-compliance. Enforcement measures would be taken against non-compliant employers (including those who are found to have evaded payment of MPF contributions, deducted employer’s contributions from an employee's pay, or failed to enroll their employees in an MPF scheme). Such measures may include:

  • Failure to enroll employees in an MPF Scheme: Maximum penalty of a $350,000 fine and imprisonment for three years
  • Failure to pay mandatory contributions to MPF trustees, but having deducted 5% from employees' relevant income: Maximum penalty of a $450,000 fine and imprisonment for four years
  • Failure to pay mandatory contributions to MPF trustees, without deducting 5% from employees' relevant income: Maximum penalty of a %350,000 fine and imprisonment for three years
  • Providing false or misleading information to MPF trustees or MPFA: Maximum penalty of a $100,000 fine and imprisonment for one year on first conviction; maximum penalty of a $200,000 fine and imprisonment for two years on each subsequent conviction
  • Failure to provide monthly pay-records to employees: Financial penalty of $10,000 for the first failure, $20,000 for the second failure and $50,000 for subsequent failures
  • Failure to notify MPF trustees in writing of an employee's cessation of employment: Financial penalty of $5,000 for the first time, $10,000 for the second failure and $20,000 for subsequent failures

Moreover, when you are updating MPF account information, or handling documents, there are a wide varieties of forms that employers should pay extra attention to. For example, the Claim Form for Reimbursement of SP/LSP. Employers should make sure they have properly filled in and signed the form, when they are applying for a reimbursement of already paid LSP/SP, and then hand it in to the MPF trustees.

If there is any employee's cessation of employment, employers need to help their employees to fill the relevant form, and notify the MPF trustees within 10 days after the month the employee have left the company. 

If you wish to change any employer information, for example a change of address because of moving, or changing the authorized signatories, employers would have to notify the MPF trustees, and hand in relevant forms, within 30 days by the time you make the changes. 

We keep coming back to the word 'MPF Account', so what really is a MPF account? MPF account normally can be further categorized into two different accounts - a contribution account, or personal account. Your contribution account is referring to your current account opened or registered by your company. When your cessation of employment reached 3 months, the contribution account will be transferred to a new personal account.


At this point, you should also be aware that if you have been to different companies, you will end up having a long lists of personal accounts. In order to prevent yourself from forgetting one or two MPF personal accounts, you should consider consolidating all your personal accounts. Then, it will be so much easier for you to keep track on your accounts and while you wish to claim your accrued benefits. There are 3 points, you should take notice when consolidating you MPF personal accounts:

  1. Choose a professional Trustee and MPF plan
  2. Fill in all relevant forms to your appointed trustee
  3. Carefully check all the provided documents after the consolidation 

Before the consolidation process, employees should confirm that you have all the necessary information on all of your MPF personal accounts, and be able to provide the relevant information to the appointed trustee. If you have forgotten how many MPF personal accounts you have, feel free to ask OneStart Business Centre for help! We would love to help you check it out, and aid your consolidation process. You can also check on the MPFA website yourself, but you will have to registrate an online account for enquiries. 

One special point about MPF personal account consolidation is that the process itself involves fund transactions. You original trustee will sell all units of fund in your current account. Then, your new appointed trustee would, following you orders, purchase back the fund units under your chosen plans. Throughout the selling and buying process, there might be a "time-leg" of  about one to two weeks. It becomes extremely crucial that you seek out professionals to handle your MPF personal accounts consolidation, to prevent any unwanted transaction incidents from happening. 

Apart from our professional MPF enrolment or registration service, and our MPF consultation service, OneStart Business Centre could also offer you with considerate and attentive MPF consolidation services. We hope to ensure our customers from falling into traps innocently and be accounted and non-compliant employers; and to ensure even employees could enjoy professional MPF consultation services. 


Interested in OneStart Business Centre’s insurance and MPF consulting services? Phone in to our hotline 3575 6888 or WhatsApp our helpful consultants! Virtual Office is one call away!