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 Daily Rate 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 daily paid employee defined by Mandatory Provident Fund Schemes Authority. It is assumed that this employee is paying multiple times a month and each payroll requires MPF Contributions. 

If the No Mid-Month Payroll is checked, the casual employee MPF Contribution will be contributed only at the month-end. 

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 https://www.mpfa.org.hk/en/mpf-system/types-of-mpf-schemes/industry-schemes#Employers),  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 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:

Example,

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

Casual Employee Under Master Trust Scheme

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

For casual employees with wage 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.