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The following is issued on behalf of the Mandatory Provident Fund Schemes Authority:
In response to media reports regarding the review of the minimum and maximum levels of the "relevant income" for contributions to Mandatory Provident Fund Schemes, a spokesman for the Mandatory Provident Fund Schemes Authority (MPFA) states the following:
The MPFA is required by the Mandatory Provident Fund Schemes Ordinance (the Ordinance) to conduct a review of the minimum and maximum relevant income levels no less than once in every four years to ascertain whether or not there are grounds for any amendment.
The Ordinance also prescribes the factors that the MPFA must take into account in conducting the review, namely, 50% of the monthly median employment earnings for the minimum relevant income level and the monthly employment earnings at 90th percentile for the monthly earnings distribution for the maximum relevant income level ("statutory factors"). The Ordinance does not preclude the MPFA from taking other factors into account in conducting the review.
In compliance with the Ordinance, the MPFA conducted a statutory review last year and submitted a review report to the Government for its consideration in July 2010.
In conducting the review, the MPFA duly took into account the two statutory factors, according to which consideration could be given to adjusting the minimum relevant income level to $5,500 (based on more recent data) and the maximum relevant income level to $30,000.
Apart from stating the results of applying the statutory factors, the review report also set out other relevant factors that the MPFA had taken into account in conducting the review. It is clearly stated in the report that the statutory minimum wage needs to be taken into consideration.
It is for the Government, in consultation with other stakeholders including legislators, to make a decision on whether and, if so how, to adjust the minimum relevant income level to take into account the statutory minimum wage.
Ends/Wednesday, February 16, 2011
Issued at HKT 18:41
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