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What is Casual Employee in HRPro

Casual employees are those engaged in the construction or catering industries (or under the MPF Industry Scheme) , and are employed either on a day-to-day basis or for a short-term fixed period of less than 60 days, and aged between 18 and 65.

There are two check box options in Employee Master, HR Info Tab. Casual Employee under Industry Scheme and Casual Employee Under Master Trust Scheme



When either of this option is checked AND the employee is a Salary by Daily or Monthly Employee, the Mid-Month Payroll will calculate the MPF contribution based on Non-monthly paid employee defined by Mandatory Provident Fund Schemes Authority.

When the option Casual Employee under Industry Scheme is checked and the employee is paid by Monthly, the Payroll Amount with be half of the Salary defined in Employee Master.


Daily Income Amount of Mandatory Contributions
(per working day)
Employer’s Contributions Employee’s Contributions
Less than $280 $10 Not required
$280 to less than $350 $15 $15
$350 to less than $450 $20 $20
$450 to less than $550 $25 $25
$550 to less than $650 $30 $30
$650 to less than $750 $35 $35
$750 to less than $850 $40 $40
$850 to less than $950 $45 $45
$950 or more# $50 $50

#This income band contains the daily maximum relevant income level (i.e. $1000) and the maximum amount of contribution (i.e. $50).  If the daily income of a casual employee is more than $1000, the amount of contributions payable by both the employer and employee will remain at $50 each day.

Under the new contribution calculation method (as stated at http://www.mpfa.org.hk/eng/main/employer/industry_schemes.jsp),  Employer can simply check his daily income for each working day in the contribution period against the new contribution scale, and then add up the contribution amount payable for each working day to arrive at the total contribution amount payable for that contribution period.

The new contribution calculation method and the unified contribution scale, effective from 1 November 2013, have been established on the basis that casual employees in the construction and catering industries are usually daily-rated. For a casual employee who is not daily-rated but is employed, for example, on a fixed weekly or monthly rate, it is necessary to calculate his/her average daily income, then to check this against the corresponding income band under the new contribution scale to determine the applicable daily contribution amount, and finally to calculate the total MPF contributions payable for the week or month. The methods for calculating average daily income, daily contribution amount and total MPF contribution amount are as below:

Average daily
income =
Actual income earned in a contribution period
No. of actual working days in the contribution period
 
Daily contribution
amount =
Check average daily income against new contribution scale for contribution amount
 
Total MPF contribution
amount =
[Daily contribution amount] x [No. of actual working days in the contribution period]

Example,

Average Daily Income =                         $11,950 / 23 = $519.57
Daily Contribution Amount =                 $25
Total MPF contribution amount =        $25 x 23 = $575

When the option Casual Employee Under Master Trust Scheme is checked

If you choose to enrol your casual employees in a Master Trust Scheme, the method for calculating contributions is entirely different.

For casual employees with wages periods more frequent than monthly, such as weekly or half-monthly, you should first determine the minimum and maximum relevant income levels by multiplying the number of calendar days in the contribution period concerned by the daily minimum and maximum relevant income levels of $280 and $1,000.


Relevant incomeMandatory contribution amount
Employer’s contributionsEmployee’s contributions
Less than
$280 x No. of calendar days in the contribution period concerned
Total relevant income in the contribution period concerned x 5%Not required
Between the minimum and maximum relevant income levels for the contribution period concernedTotal relevant income in the contribution period concerned x 5%Total relevant income in the contribution period concerned x 5%
More than
$1,000 x No. of calendar days in the contribution period concerned
$1,000 x No. of calendar days in the contribution period concerned x 5%$1,000 x No. of calendar days in the contribution period concerned x 5%

For example, if your casual employee with a daily income of $1,000 worked 12 days in the second half of March, his total relevant income is: $1,000 x 12 days = $12,000. Since $12,000 falls between $4,480 and $16,000 (minimum and maximum relevant income levels for second half of March respectively), both employer’s and employee’s contributions should be $12,000 x 5% = $600.


Reference