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CONTRIBUTION
Q:
What does “Contribution Period” refer to ?
Q:
When is Contribution due ?
Q: What is
Relevant Income ?
Q: What is
the maximum / minimum level of relevant income of which mandatory contribution
applies ?
Q:
What does “Contribution Period” refer to ?
A Contribution
Period refers to the period for which an employer pays relevant income to
the employee.
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Q:
When is Contribution due ?
A: In
respect of a contribution period ending on or after 1 February 2003, it means
the 10th day after the last day of:
- a calendar month within which the relevant contribution period ends;
or
- the month during which the Permitted Period (which is the first 60 days
of employment) ends, whichever is the later.
That means
employers adopting payroll periods, which are more frequent than monthly, can
submit remittance data and payment on a monthly basis.
Remarks
: If the last day of the permitted period as stated above is a public
holiday, a gale warning day or a black rain-storm warning day, it shall
mean the next following day which is not a public holiday, a gale warning
day or a black rain-storm warning day.
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Q:
What is Relevant Income ?
A: RELEVANT
INCOME includes wages, salary, leave pay, fee, commission, bonus, gratuity,
perquisite or allowance which are expressed in monetary terms and are being
paid or payable by the employer to the relevant employee. Severance payment and long service payment should be excluded
from the calculation of relevant income
I. Reference
List of Relevant Income
|
Types
of Income
|
Reasons
|
When to be Included
|
| An
agent of an employer pays incomes on behalf of the employer |
In
consideration of employment & expressed in monetary terms
|
When
it is ascertained & paid
|
| Back
Payment |
| Bonus |
| Cash
Allowance |
| Commission |
| Contract
Gratuity |
| Fee |
| Service
Charges / Tips Collected by an Employer from Customers & Distributed
among Employees |
| Wages |
| Payment
to an agent of employee / 3rd party of employee’s behalf
in consideration of employment |
| Payments
after cessation of employment under employee’s entitlement |
|
Housing Allowance
|
|
Housing Benefit
|
| Advance
Payment |
In
consideration of employment & expressed in monetary terms |
When
it is earned |
| Debt
Repayment paid by employer on behalf of employee |
Indirect
payment in consideration of employment |
When
it is earned |
| Salaries
Tax paid by Employer on behalf of Employees |
| Director’s
Fees (Under Employment Contract) |
In
consideration of employment & expressed in monetary terms |
When
it is earned |
| Perquisite |
| Salary |
| Gratuity |
In
consideration of performance in employment & expressed in monetary
terms |
When
it becomes payable |
| Leave
Pay |
In
consideration of performance in employment & expressed in monetary
terms |
When
it is earned |
| Loan
/ Advance of money released in consideration of employment |
In
consideration of employment |
Contribution
period in which it is made |
| Unidentified
Payment |
In
consideration of employment & expressed in monetary terms |
Contribution
period in which it is made |
II. Reference
List of Non-Relevant Income
|
Types of Income
|
Reasons
|
|
Awards
of damages or Compensation determined by courts or tribunals
|
Not
a reward for services
|
|
Gratuity
for Marriage
|
|
Payment
made by 3rd parties to an insurance contract provided by employer
|
|
Rewards
for Passing a Professional Examination
|
|
Director’s
Fees (An Office Holder)
|
Not
in the consideration of employment
|
|
Loan
/ Advance of money
|
|
Tips
(without employer’s intervention)
|
|
Uniform
Laundry Allowance
|
Not
in the consideration of employment duty
|
|
Long
Service Payments
|
A
statutory payment
|
|
Redundancy
Payment
|
|
Severance
Payment
|
|
Entertainment
Allowance
|
Necessary
in the performance of an employment duty
|
|
Mileage
Duty Allowance
|
|
Mobile
Phone Services Charges Allowance
|
|
Payment
in lieu of notice from employee to employer
|
Compensation
for employment termination, not in consideration of services rendered
|
|
Payment
in lieu of notice from employer to employee
|
|
Cash
Allowance (an alternative to free meals)
|
A
non-monetary benefit
|
|
Cash
Realized from Selling of Marketable Goods or Services which is provided
by the employer
|
|
Marketable
Goods or Services provided by the employer
|
|
Provision
of Education
|
|
Provision
of Furniture
|
|
Provision
of Life Insurance
|
|
Provision
of Meals
|
|
Provision
of Medical Service
|
|
Provision
of Travelling
|
|
Provision
of Uniforms
|
|
Reimbursement
for Education Allowance
|
|
Reimbursement
for Medical Treatment
|
|
Reimbursement
for Professional Organization Membership
|
|
Reimbursement
for Travelling Allowance
|
|
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Q: What is the maximum
/ minimum level of relevant income of which mandatory contribution applies ?
A:
Maximum Level of Relevant Income for Mandatory Contribution Purposes
:
HK$
30,000 per month
This
is the upper limit for Employer / Employee to make mandatory contributions
of 5% of the relevant income for the payroll period concerned.
Minimum
Level of Relevant Income for Mandatory Contribution Purposes:
HK$ 7,100 per month
This
is the lower limit for Employee to make mandatory contributions of
5% of the relevant income for the payroll period concerned. However,
Employer still need to make mandatory contributions for employees
whose relevant income is below HK$7,100 per month.
The
Maximum and Minimum Level of Relevant Income for payroll periods that
are more frequent than monthly is calculated at a daily amount of HK$1,000
and HK$280 respectively.
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