Payroll Module Setup, MPF tab

Payroll Module Setup, MPF tab is under System Manager ⇒  HRPro Setup, Payroll Module Setup.

Default MPF Account

• The MPF Interface File Information for the default MPF Account is defined in the MPF Account Master

MPF Regulations 

• Minimum Level of Income (Monthly): The minimum income level for monthly paid employees is HK$7,100.

• Maximum Level of Income (Monthly): The maximum income level for monthly paid employees is HK$30,000.

• Fixed Amount over Maximum: This is the maximum contribution for MPF

• Minimum Level of Income (Casual) per day: The minimum income level for qualified casual employees is HK$280 per day.

• Maximum Level of Income (Casual) per day: The maximum income level for qualified casual employees is HK$1,000 per day.

• Enable 60 days of first contribution retention: When turned on, the first contribution is laid on the period of the employee's 60 days of employment. i.e. Hold the contributions until the employee worked for 60 days (See also the option Disable 60 days first contribution retention in Employee Master, HR Info tab that is for individual employee). 

• MPF Commence Date considers Group Join Date: When turned on, The employee's MPF Commence Date will count starting from Group Join Date instead of Join Date

• Treat "EE Join Scheme Date" as "EE Commence Date" (Recommend No): When turned off, EE Join Scheme Date is a reference field and will not be used for MPF Calculation. The EE Commence Date is calculated by the system and is followed by the "30+N" days rule. 

When it is turned on, MPF Calculation will treat the EE Join Scheme Date as the EE Commence Date, (e.g. If the EE Join Scheme Date is set to Join Date, the EE contribution will be commenced at the Join Date and the first contribution occurred at that month). 

Additional Voluntary Contribution

• Voluntary Contribution based on: Voluntary contributions can be calculated based on the following options:  

  • • • • N/A

        • 1. Regular salary x (MC % + VC%) - mandatory contribution

        • 2. MPF Relevant income x (MC % + VC%) - mandatory contribution

        • 3. AVC Relevant income x (MC % + VC%) - mandatory contribution

        • 4. Regular salary x VC%

        • 5. MPF Relevant income x VC%

        • 6. AVC Relevant income x VC%

Definitions and Details:

• Regular Salary: Includes Basic Salary, Holiday Pay, Annual Leave Pay, Sickness Allowance, Injury Leave Allowance, Maternity/Paternity Leave Pay, and No Pay Leave Deduction. The following payment types are excluded: Allowance 1 to 4, OT Pays (1 to 8), Late Deduction, Bonus, Double Pay, Wage In Lieu Pay, LSP/SP Pay, and Pay Type 1 to 15, etc.  

• MPF Relevant Income: This refers to the income associated with Pay Types where MPF Contributions are activated in the Payroll Module Setup, Pay Type tab, or Pay Type Table. 

• AVC Relevant Income: This pertains to the income associated with Pay Types where AVC Contributions are enabled in the Payroll Module Setup, Pay Type tab, or Pay Type Table. 

• MC% (Mandatory Contribution): Generally set at 5%, as defined in the Employee Master under the HR Info tab.  

• VC% (Voluntary Contribution): Defined in the Employee Master under the HR Info tab.  

• Relevant Income considers MPFA Maximum Level of Income: When turned on, the Relevant Income over $30,000 (i.e., the Maximum Level of Income (Monthly)) will not be considered for the ER(VC) and EE(VC) calculation (i.e., Income > 30000, use 30000). 

• Relevant Income considers MPFA Minimum Level of Income: When turned on, the Relevant Income under $7,100 (i.e., the Minimum Level of Income (Monthly)) will not be considered for the EE(VC) calculation (i.e., Income < 7100, use 0). 

• ERVC applies exclusively to employees aged 18 to 64: When turned on, the Employer Voluntary Contribution ER(VC) is calculated solely for employees within the age range of 18 to 64. Once an employee turns 65, the ERVC will automatically be set to zero.

• Voluntary contributions commence in the month following the completion of the probation period. When turned on, Voluntary Contributions (ER(VC) and EE(VC)) will begin in the month immediately following the employee's Probation End Date. 

• Voluntary Contributions commence in the month following the completion of 60 days of service. When turned on, Voluntary Contributions (ER(VC) and EE(VC)) will begin in the month immediately following the completion of 60 days of service.

See: MPF Voluntary Contribution Explanation

MPF Excel File (General)

• Show Termination Reason Table in MPF Excel File (General): When turned on, a Termination Reason Table will be shown on the bottom part of the MPF Excel File (General). 

• Show Authorized Signature Section in MPF Excel File (General): When turned on, an Authorized Signature Section will be shown on the bottom part p of the MPF Excel File (General). 

• MPF Excel File (General) Order by Employee Name: When turned on, the MPF Excel File (General) in Generate MPF File will be ordered by Employee Name, otherwise, it will be ordered by Employee Number.