MPF & EB Schemes
Mandatory Provident Fund (MPF) Schemes and Employee Benefits Schemes for Corporations
The Mandatory Provident Fund, often abbreviated as MPF, is a compulsory saving scheme (pension fund) for the retirement of residents in Hong Kong. Most of employees and their employers are required to contribute monthly to mandatory provident fund schemes provided by approved private organisations, according to their salaries and the period of employment.
The Hong Kong Mandatory Provident Fund was implemented in December 2000, following the enactment of the Mandatory Provident Fund Schemes Ordinance in August 1995 and Provident Fund Schemes Legislation (Amendment) Ordinance 1998 in March 1998.
Employee Benefits (also called fringe benefits) include various types of non-wage compensation provided to employees in addition to their normal wages or salaries.
Examples of these benefits include: housing; group insurance (medical, dental, life, etc.), disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation, profit sharing, domestic help, etc.
The purpose of employee benefits is to increase the economic security of staff members, and in doing so, improve worker retention across the organization. As such, it is one component of reward management.