What is Casual Employee in HRPro
Casual employees are those engaged in the construction or catering industries (and under the MPF Industry Scheme), and are employed either on a day-to-day basis or for a short-term fixed period of fewer 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.
Casual Employee enabled Mid-Month Payroll
When either of these options is checked AND the employee is a Salary by Daily or Monthly Employee, as well as the No Mid-Month Payroll (in Employee Master, HR Info tab) is not checked, the Mid-Month Payroll will calculate the MPF contribution based on Non-monthly paid employee defined by Mandatory Provident Fund Schemes Authority. It is assumed that this employee is paying two times a month and each payroll required MPF Contributions and the payroll period of Mid-Month Payroll covered 1st to 15th and the Month End Payroll covered 16th to End of Month.
If the No Mid-Month Payroll is checked, the casual employee MPF Contribution will be contributed only at month end.
When the option Casual Employee under Industry Scheme is checked and the employee is paid Monthly, the Payroll Amount will be half of the Salary defined in Employee Master.
Casual Employee under Industry Scheme
#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 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), the 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, and 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:
Total MPF contribution
Actual income earned in a contribution period /
No. of actual working days in the contribution period
Check average daily income against new contribution scale for contribution amount
[Daily contribution amount] x [No. of actual working days in the contribution period]
Casual Employee Under Master Trust Scheme
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.
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.