7 February 2025
Mr. Cheng Yan-chee Managing Director Mandatory Provident Fund Schemes Authority Level 12, Tower 1, The Millennity, 98 How Ming Street, Kwun Tong, Hong Kong
Dear Mr Cheng,
Concerns regarding MPFA’s Review on the Minimum and Maximum Relevant Income Levels for MPF Contributions
I am writing to express the Hong Kong General Chamber of Commerce’s concerns about the recent proposed revisions to the minimum and maximum levels of relevant income (Min/Max RI levels). While we acknowledge the necessity of reviewing these income levels, which have remained unchanged since June 2014, we believe that the proposed increase in the maximum income will pose significant challenges for employers, particularly in light of the fragile economy and the impending abolition of the MPF offsetting mechanism in May 2025.
Economic Concerns
The prolonged weak economy has placed significant strain on businesses, particularly small and medium-sized enterprises, affecting their operations and workforce stability. Increasing the maximum income could exacerbate these challenges. Additionally, the upcoming abolition of the MPF offset arrangement will further increase employers’ financial burdens, impacting cash flow and operational costs.
Position on Proposed Adjustments
While we support a review of the minimum income to account for the cost of living, we strongly oppose raising the maximum income level. Maintaining the current maximum is essential for business sustainability during this challenging period. We urge the MPFA to reconsider the proposed changes and engage in dialogue with the business community to find a balanced solution that meets the needs of both employees and employers.
We hope you will give our comments your due consideration.
Yours sincerely,
Agnes Chan Chairman
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