For newly-hired full-time and part-time employees (aged 18 to 64), employers are required to enrol them in an MPF scheme within the first 60 days of their employment.
In addition, an employee will also enjoy a Contribution Holiday during the first 30-day period (and more) of employment with the company.
Keep reading to find out more! 👍🏻
MPF Contribution for Newly-Hired Employees
Employer’s MPF (ER) contribution period commencement
As an employer, you should make contributions to your employees from the first day of their employment.
Employee’s MPF (EE) contribution period commencement
Employees enjoy a “Contribution Holiday”, meaning they are not required to make contributions for the first 30 days of employment and for:
any incomplete payroll period that immediately follows the 30-day period (if the employee’s wage period is monthly or shorter than monthly); or
the calendar month in which the 30th day of employment falls (if the employee’s wage period is longer than monthly).
As an employer, the contributions for your employees are made from the first day of their employment but the actual contribution will be made only in the 3rd month; during First Contribution. **
Example: Month 1 + Month 2 MPF Contribution (ER) will be paid out along with Month 3 MPF Contribution (ER) contribution together on the 3rd month during First Contribution.
According to MPFA, the “First Contribution” should be paid to the trustee on or before the 10th day after the last day of the calendar month on which the 60th day of employment falls.
(Refer to this guide here for more details on how First Contribution is calculated)
Nicholas is a newly hired employee that joined your company on 5th September.
Employer (ER) Contributions:
Employee (EE) Contributions:
For a more detailed explanation of the MPF Contribution Holiday, you can head to MPF’s site here:
You can also contact MPF’s Help Agents for further clarification from their website. 😎