Hong Kong gazettes bill to penalise employers for late MPF payments
Hong Kong published a draft bill on 13 November to amend the Mandatory Provident Fund (MPF) scheme, introducing a two-tier surcharge for employers who delay contributions and empowering the MPF Authority to fine trustees up to HK$10 million or triple any gain from violations. The bill will have its
The Hong Kong Special Administrative Region government gazetted the draft Mandatory Provident Fund (MPF) Schemes (Amendment) Bill 2026 on 13 November, proposing a two-tier surcharge system to deter employers from defaulting on contributions and to speed up payments.
Under the bill, employers who fail to pay overdue contributions and the existing 5 per cent first-tier surcharge within 120 days of the due date would face a flat 10 per cent second-tier surcharge on the total amount owed. The Mandatory Provident Fund Schemes Authority (MPFA) would also be empowered to issue written notices requiring employers to submit relevant income data for employees within a specified period of at least 14 days; those who fail to comply would face a fixed penalty.
To strengthen accountability among MPF trustees, the bill proposes that the MPFA could issue penalty orders against non-compliant trustees, including fines of up to HK$10 million or three times the profit gained or loss avoided from the violation – whichever is larger – along with public reprimands, or both. The bill would explicitly prohibit trustees from passing any fines on to the MPF schemes, constituent funds or scheme members they manage.
To enhance transparency and deterrence, the MPFA would be allowed to disclose details of its enforcement actions to the public and list such information in a public register. The bill also proposes that if MPF intermediaries engage in misconduct during “MPF-related activities”, the MPFA could take disciplinary action regardless of whether the activities are regulated. This is intended to raise industry standards and strengthen protection for scheme members.
A spokesperson for the Financial Services and Treasury Bureau said the legislative proposal to streamline the recovery of overdue contributions would help the MPFA improve efficiency in recovering arrears and safeguard the retirement savings of the workforce. The spokesperson added that the government had incorporated views from trade unions, employer groups and human resources management bodies when drafting the proposal, and that the vast majority of employers who comply with payment rules on time would not be affected.
The bill is scheduled for its first reading in the Legislative Assembly on 25 November.
