Self-employed individuals and casual labours

What if a person is self employed?

Self-employed persons, including business partners, may have a deduction of up to HK$18,000 per annum in respect of assessable profits for their contributions to an MPF scheme. They still have to contribute 5% of their income to the fund.

Do casual employees have to enrol in an MPF scheme?

An industry scheme is a type of MPF scheme. Enrolment in an industry scheme is optional. If a casual worker chooses not to enrol in one, he must enrol in a master trust scheme. Casual employees must enrol in either an industry scheme or a master trust scheme.

The minimum and maximum levels of daily income for a self-employed person are $280 and $1,000 respectively. The instant payment method is deployed to allow employees to remit contributions and transfer them to another scheme.

The term “casual employee” refers to employees from 18 to 64 years old who are employed in the construction or catering industries on a day-to-day basis, or for a fixed period of less than 60 days.

The calculation of mandatory contributions in an industry scheme is set by the MPFA and published in the Government Gazette. The requirement of 5% of relevant income for mandatory contributions does not apply to this scheme.

Contributions by members to a master trust scheme are invested in the form of a unit trust. Trustees must be approved by the MPFA. If an employer chooses a master trust scheme, it is required to enrol his/her employees in the scheme.