What Changed
- Establishment of a 10% second-tier surcharge for MPF default contributions remaining unpaid after 120 days.
- Empowerment of the MPFA to impose pecuniary penalties of up to $10 million or three times financial benefit/loss avoided on non-compliant trustees.
- Authorization of public enforcement disclosures and disciplinary actions against MPF intermediaries for improper conduct in MPF-related activities.
The Hong Kong Special Administrative Region (SAR) Government published the Mandatory Provident Fund Schemes (Amendment) Bill 2026 in the Gazette on November 13, 2026. The proposed legislation seeks to enhance the recovery process for default Mandatory Provident Fund (MPF) contributions and strengthen the regulatory framework governing MPF trustees and intermediaries.
To deter employers from defaulting on contributions, the Bill introduces a two-tier surcharge mechanism. In addition to the existing 5 per cent first-tier surcharge, a second-tier surcharge at a flat rate of 10 per cent will be imposed on the total amount in arrears if an employer fails to fully pay outstanding contributions and/or the first-tier surcharge before the 120th day following the contribution day. Furthermore, the Mandatory Provident Fund Schemes Authority (MPFA) will be empowered to issue written notices requiring employers to provide employee income information within a specified period of not less than 14 days, with non-compliance resulting in a fixed penalty.
For MPF trustees, the Bill empowers the MPFA to issue sanctioning orders against non-compliant entities. These sanctions include pecuniary penalties up to $10 million or three times the profit gained or loss avoided (whichever is greater), a public reprimand, or a combination of both. Express provisions prohibit trustees from passing any pecuniary penalties on to MPF schemes, constituent funds, or scheme members. Additionally, the MPFA will be authorized to publicly disclose enforcement actions and list relevant information in an open register.
Regarding MPF intermediaries, the Bill enables the MPFA to take disciplinary action against improper acts in MPF-related activities, regardless of whether regulated activities are involved. The Bill also introduces measures aimed at offering greater flexibility in MPF investment management and improving risk management.
According to the Financial Services and the Treasury Bureau, law-abiding employers who pay contributions on time will not be affected. The Bill will be introduced into the Legislative Council for its First Reading on November 25, 2026. Entry-into-force and application dates were not provided in the release.
Who May Be Affected
Employers, MPF scheme trustees, MPF intermediaries, and scheme members in Hong Kong SAR.
Cross-Border Context
Relevant to foreign and international companies operating as employers in Hong Kong SAR, as well as financial institutions acting as MPF trustees or registered intermediaries.
What to check next
- Track the First Reading of the Bill in the Legislative Council on November 25, 2026.
- Monitor forthcoming guidelines to be issued by the Mandatory Provident Fund Schemes Authority (MPFA).
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.