Implementing MPF Industry Schemes

Industry schemes are designed to make MPF participation more convenient for employers and casual employees in the construction and catering industries. Casual employees who work for an employer in the catering or the construction industries, and are employed on a day-to-day basis, or for a fixed period of less than 60 days, are eligible to join. Employers in the catering or construction industries are required to enroll casual employees in an MPF scheme regardless of the length of the employment period.

Global Payroll for Hong Kong provides these supporting elements to handle contribution calculations for MPF industry schemes:

The system delivers these earning elements for MPF industry schemes:

The two system-delivered earning elements, DLYCSLERN and NDLYCSLERN, use the calculation rule Rate x Unit to compute MPF contributions. In this rule:

Rate is the system element DAILY RT.

Unit is the override value that is defined at the payee level (on the Element Assignment By Payee page). In case of period segmentation, the overrides are to be specified for each segment with the begin date the same as the segment begin date.

For retro calculations, rate changes should be done using the Job-Compensation component, whereas unit changes need to be made on the Defining Payee Overrides.

The system delivers these deduction elements for MPF industry schemes:

PeopleSoft uses these variable elements to identify employees who participate in MPF industry schemes:

• MPF VR CASUAL FLG

  Setting the character value is set to Y indicates that employees participate in industry schemes.

  If the value is set to N, employees are participants of master trust schemes.

• MPF VR IND DLY EE

  Setting the character value is set to Y indicates that employees are casual workers who are paid daily.

• MPF VR IND NDLY EE

  Setting the character value is set to Y indicates that employees are casual workers who are not paid daily. They can be paid weekly, biweekly or monthly.

As mentioned earlier, MPF contributions for casual employees are calculated differently based on their payment schedules (daily and non-daily). Use these variable elements to specify casual employees’ pay schedules at the pay group level on the Defining Payee Overrides.

This example illustrates the fields and controls on the Supporting Element Overrides page showing MPF VR CASUAL FLG and MPF VR IND DLY EE elements.

Enter Y for both variables to indicate that employees are casual workers who are paid daily.

This example illustrates the fields and controls on the Supporting Element Overrides page showing MPF VR CASUAL FLG and MPF VR IND NDLY EE elements.

Enter Y for both variables to indicate that employees are casual workers who are not paid daily.

Note that the system does not deliver pay groups for industry schemes; you need to use existing or create new ones.

PeopleSoft delivers these element groups for use in MPF industry schemes:

• MPF EG IND DLYDED

  This element group is created for casual daily deduction elements.

• MPF EG IND DLYERN

  This element group is created for the casual daily earning element.

• MPF EG IND NDLYDED

  This element group is created for casual non-daily deduction elements.

• MPF EG IND NDLYERN

  This element group is created for the casual non-daily earning element.

Note that the system does not deliver eligibility groups for industry schemes; you need to use existing or create new ones.

This example illustrates the fields and controls on the Element Group Members page showing elements included in the MPF EG IND DLYDED group.

The payroll process identifies all employees who participate in industry schemes using three variable elements (or flags) that are specified at the pay group level. These elements are also used to resolve earnings and deductions for employees.

All deduction elements have a generation control to check the MPF VR IND DLY EE and MPF VR IND NDLY EE flags. Generation control results in true if the appropriate flag is set to Y. For example, all MPF deduction elements for daily paid casual employees have a generation control that checks for the MPF VR IND DLY EE flag. If the flag value is Y, then it resolves the deduction element. Similarly, for non-daily-paid casual employees, the corresponding generation control checks the MPF VR IND NDLY EE flag.