Sun Yuhan: The review of the minimum and maximum income levels for Mandatory Provident Fund contributions needs to consider comprehensive factors. We will carefully examine them before making a decision.

On March 18, when answering questions from members of the Legislative Council, Hong Kong Secretary for Labour and Welfare Law Chi-kwong stated that the Mandatory Provident Fund Schemes Authority (MPFA) considers relevant employment income data and other factors such as social and economic conditions, impact on employees and self-employed individuals, and financial burdens when conducting a review of the minimum and maximum income levels and formulating reports and recommendations. The government will thoroughly review the MPFA's report before making a decision. Law also mentioned that the government has no plans to expand the scope of the Protection of Wages on Insolvency Fund to cover employers' Trillions of MPF contributions. The Protection of Wages on Insolvency Fund provides relief to employees by advancing wages and other statutory entitlements owed to them when their employers become insolvent. Contributions to the Trillions of MPF, if deducted from employees' wages but not made by the employer, are considered as wage arrears and covered by the Protection of Wages on Insolvency Fund. The MPF Schemes Ordinance establishes the Trillions of MPF system to enhance retirement protection. Employers are required to make contributions to the Trillions of MPF scheme, and the consequences of failing to do so are outlined in the ordinance. If an employer fails to make Trillions of MPF contributions, there are provisions in place for the recovery of the outstanding debt. Regarding the Trillions of MPF legislation in the shipping industry, Law pointed out that due to the global nature of the shipping industry, the rights and welfare of seafarers are protected by the International Labour Organization and the International Maritime Organization through the Maritime Labour Convention, 2006. This convention is implemented in Hong Kong through the Merchant Shipping (Seafarers) Ordinance, with oversight by the Marine Department. Employees working on local vessels such as ferries are protected under the Employment Ordinance like any other employee. The Hong Kong government will implement the abolishment of the Mandatory Provident Fund (MPF) offsetting mechanism on May 1, 2025. From that date onwards, employers will no longer be able to use accrued benefits from MPF contributions to offset severance payments or long-service payments required under the Employment Ordinance. The government has also introduced a 25-year subsidy scheme to assist employers affected by the abolishment of the MPF offsetting mechanism in adapting to the policy change. Employees covered under seafarer agreements specified by the Merchant Shipping (Seafarers) Ordinance, or those serving on non-Hong Kong registered vessels, are not subject to the provisions of the Employment Ordinance. The Mandatory Provident Fund Schemes Ordinance also does not apply to these individuals. Therefore, the abolishment of the MPF offsetting mechanism will not affect employers who employ seafarers under the Merchant Shipping (Seafarers) Ordinance agreements. In other words, these employers can continue to handle employment benefits in accordance with the agreements made with seafarers. This is why the subsidy scheme is not applicable to agreements made between employers and seafarers.