Story perspectives

MPFA Proposes New Surcharge for Overdue Pension Contributions

3/29/2026

Summary

Story summary

The Mandatory Provident Fund Schemes Authority (MPFA) will propose a two-tier surcharge mechanism for overdue pension contributions to the government by mid-year.
Under current law, employers must pay a 5% surcharge on arrears within two weeks.
Ayesha Macpherson Lau, MPFA chairwoman, said the agency issues about 31,000 notices monthly to non-compliant employers.
Only 16% of non-compliant employers settle within the two-week deadline, and about half settle within four months.

1 of 1

Story summary

The Mandatory Provident Fund Schemes Authority (MPFA) will propose a two-tier surcharge mechanism for overdue pension contributions to the government by mid-year.
Under current law, employers must pay a 5% surcharge on arrears within two weeks.
Ayesha Macpherson Lau, MPFA chairwoman, said the agency issues about 31,000 notices monthly to non-compliant employers.
Only 16% of non-compliant employers settle within the two-week deadline, and about half settle within four months.