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MPF - Industry Scheme vs. Master Trust Scheme

Comparison Table

 

  Industry Scheme Master Trust Scheme
Enrolment Employer need not enrol employees if they already have account in the same Industry Scheme Employer is required to enrol employees
Contribution Simple contribution scale for casual employees More complex method for casual employees
Pay-records Employer need not provide pay records to casual employees if contributions are made on the next working day Employer needs to provide pay records
Record-keeping Employer need not keep records of casual employees' personal particulars, relevant income, remittance of contribution information, etc Employers need to keep records

 

Industry Scheme

 

Industry Schemes are set up and specially designed for the construction and catering industries, since these industries employ many casual and short-term employees. Workers paid weekly, half-monthly (1st and 2nd half of month), and even daily.

 

Daily Relevant Income

Amount of Mandatory Contribution
Employer's Contribution Employee's Contribution
< $280 $10 Not required
$280 to < $350 $15 $15
$350 to < $450 $20 $20
$450 to < $550 $25 $25
$550 to < $650 $30 $30
$650 to < $750 $35 $35
$750 to < $850 $40 $40
$850 to < $950 $45 $45
$950 or more* $50 $50

 

* This income band contains the daily maximum relevant income level (i.e. $950) and the maximum amount of contribution (i.e. $50). If the daily relevant income of a casual employee exceeds $950, the amount of contribution payable by both the employee and his employer will remain at $50 each per day.

 

Note: There is a new calculation method enacted in November 2013. It is called the New Contribution Method and Unified Contribution Scale. The results may differ depending on which calculation method is used. This is the calculation process:

 

  1. Average daily relevant income = Relevant income earned in a wage period / No. of working days in the wage period

  2. Daily contribution amount = Check average daily relevant against new contribution scale for contribution amount

  3. Total contribution amount = [Daily contribution amount] x No. of working days in the wage period]

 

 

Master Trust Scheme

 

The method for calculating contributions is entirely different from the Industry Scheme.

 

  • For casual employees with monthly wage periods
  • For casual employees with half-monthly, weekly, or daily wage periods

 

First determine the minimum and maximum relevant income levels by multiplying the number of calendar days in the contribution period concerned by the daily minimum and maximum relevant income levels of $279.99 and $950.

 

Daily Relevant Income

Amount of Mandatory Contribution
Employer's Contribution Employee's Contribution
< $280 $10 Not required
$280 to < $350 $15 $15
$350 to < $450 $20 $20
$450 to < $550 $25 $25
$550 to < $650 $30 $30
$650 to < $750 $35 $35
$750 to < $850 $40 $40
$850 to < $950 $45 $45
$950 or more* $50 $50

 

For example, if your contribution period is half-monthly, i.e. you pay wages twice a month, the minimum relevant income level for the second half of March will be $279.99 x 16 calendar days = $4,479.84 and the maximum relevant income level will be $950 x 16 calendar days = $15,200.

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