Posted by
donguan
16 yrs ago
I work for a government subvented organisation involved in the tourism industry. Every month my MPF contribution is deducted from my paycheck. At the same time the employer contributes his 5 per cent as well. However, at the end of my contract , I get a 15 per cent gratuity of which the employer deducts their MPF contribution. Is this legal? In effect I am paying for the government's contribution to my MPF. I have talked to various government departments and no one can explain to me why this subvented organisation does this. Other than being mean spirited does anyone out face the same situation and what is the explanation you have been given?
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If that is the case then why do they deduct the exact mount of the MPF fund that has been contributed by them over the course of the twoy ear contract from the gratuity? I don't the point of the deduction.
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The point i was trying to make was that when i worked for the private sector, these companies paid their share of the MPF and didn't deduct their contribution from my year-end gratuity. Now that I am working for a government subvented organisation, they are deducting the conribution they made to my MPF. Why do they do this? Other than because they want to, is there some sort of regulation they have passed? Everybody I talk to in the govenrment and at work don't know why the govevernment does this. It lao looks really bad tha they have all sorts of ads on TV talking about how they are going to prosecute employers to fail to make the mandatory contribution to their employees plan and now here we have the government breaking its own rules.
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moliu
16 yrs ago
Unfortunately thats how the HK gov works, initially it was a pay incentive to attract people to work on contract terms for gov and gov subsidized organizations, i know it may sound twisted but the gov treats gratuity as a form of retirement scheme for contract staff therefore they see it is "reasonable" to deduct employer MPF contribution from the gratuity or else u will be "paid twice" for retirement benefits. It is legal and all gov and gov subsidized orgs work the same way with gratuities, and unfortunately there is nothing u can do furthermore, it is probably stated in your employment contract in which u have signed when taking the post, therefore it is assumed that u knew already.
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