Covid-19 shows problems of MPF offsetting mechanism

The impact of the Covid-19 pandemic on Hong Kong underlines the importance of scrapping the territory’s offsetting mechanism against retirement savings as quickly as possible, argue investment industry experts.   Employers and employees in Hong Kong are both required to contribute 5% of the employee's relevant income into a mandatory provide fund (MPF) scheme each month (capped at HK$1,500). The mechanism means that when an employer fires an employee or makes them redundant they c…