Proposed 33% rise in MPF payments ‘may pile on business pressure, hit jobs’

Hong Kong's Mandatory Provident Fund Schemes Authority (MPFA) is reviewing MPF contribution levels, potentially increasing them for higher-paid workers. The MPFA proposes raising the maximum income level for contributions from HK$30,000 to HK$40,000 per month and the minimum from HK$7,100 to HK$10,000. While the proposed minimum increase is generally welcomed, the potential 33% increase for higher earners is raising concerns among business leaders and lawmakers, who fear it could strain businesses and negatively impact employment as the economy recovers. A labour representative, however, is advocating for even larger increases to meet statutory requirements and reflect rising salaries. The MPFA is expected to submit its review report to the government by mid-year.

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