The chairman of Hong Kong’s Mandatory Provident Fund Schemes Authority, David Wong Yau-kar, said on 2 June the MPF recorded more than 3400 new tax deductible voluntary contributions (TVC) accounts in April.
Total contributions for the month topped HK$20 million. This compares with 5300 new TVC accounts for the entirety of 2018.
Wong anticipates the number of TVC contributions to rise over the coming months as it is an attractive investment option – having the double benefit of being a retirement savings scheme while offering tax deductions.
Hong Kong’s current unemployment rate sits at a 20-year low of 2.8% making it a challenge for HR to attract and retain talent. Providing greater MPF benefits is one effective way for organisations to offer attractive retirement packages to employees, Wong added.