Non-Mandatory Central Provident Fund System - Employers

1. Are employers able to limit employees‘ participation in CPF schemes?

No. Employers must allow all local employees to choose whether to participate in CPF schemes, except non-resident workers.

2. Are non-resident employees able to join CPF schemes?

No. Employers can set up a private pension fund scheme for non-resident employees to join.

3. How to calculate the amount of contributions of the employees?

The minimum amount of contributions is 5% of the employee's monthly basic wage (less than 1 pataca will be rounded up to 1 pataca). The employer may also set the calculation base of contributions to be more favorable for his or her employees. If the employee’s basic wage is less than 6,569 patacas, the employee can be exempted from paying the contributions.

4. How does the employer make the payment of contributions?

The employer deducts the contribution amount from employee’s monthly wages, together with the contributions of the employer, and pays to the fund management entity on or before the last day of the following month.

5. Can an employer set different contribution conditions based on employee’s length of employment, rank and / or function etc.?

Yes. The employer has to inform the fund management entity about the changes as soon as possible.

6. Can an employer set up joint provident fund schemes with several fund management entities at the same time?

Yes. The employer can set up joint provident fund schemes in different fund management entities for employees to choose from.

7. Can an employer apply for withdrawal after participating in the non-mandatory central provident fund system?

No. However, the employer may apply to the FSS for suspension of contributions based on strong economic grounds.

8. Can the employer’s contribution balance in the joint provident fund scheme be used to offset the dismissal compensation?

No.

9. Is the employer’s contributions balance which the employees are not entitled to get be counted towards employer’s tax concessions?

No.

10. How can employers check the contribution history and the profit and loss details?

Employers can log in to the pension fund web enquiry system to check, or contact LFHL Pension Fund Department at 2870 0883.

Non-Mandatory Central Provident Fund System - Employees

1. Can an employee choose not to participate in the non-mandatory central provident fund system?

Yes.

2. Can a non-resident worker participate in the non-mandatory central provident fund system?

No. Employers can set up a private pension fund scheme for non-resident employees to join.

3. Is an employee required to inform his/her employer if he/she choose not to join the non-mandatory central provident fund system?

Yes. All eligible employees must notify the employer in writing of his/her decision to participate or not in the system.

4. Can an employee withdraw from the non-mandatory central provident fund system after participation?

No. Employees cannot withdraw from the non-mandatory central provident fund system once they have joined.

5. Can an employee pay contributions to several fund management entities at the same time?

If an employee is working for one company only, he/she can only pay contributions to that specific fund management entity chosen by the employer. If the employee is working for more than one companies simultaneously, he/she can decide whether to participate in the joint provident fund schemes set up by the different companies accordingly. As such, the different companies have to make contributions for this employee if he/she chooses to join their schemes.

6. How does an employee make the payment of contributions?

The contributions will be deducted from the employee's monthly wage by the employer. Employer will then pay the contributions of both employer’s and employee’s to the fund management entity.

7. Can an employee make contributions in respect of an amount higher than 5% of the monthly basic wage, or make contributions for the amounts that are exempted from payment?

Yes.

8. Can an employee suspend the contributions towards a joint provident fund scheme?

If the employer’s application for suspension of contributions is approved by the FSS, employees can also apply for suspension of the employee’s contributions.

9. If an employee has attained the age of 65 and the contribution time reaches 10 years before the labour relationship being terminated, is he/she able to withdraw the contribution balance of the employer?

As long as the labour relationship is still active, the employee can only withdraw the contribution balance of his/her own, but not the contribution balance of the employer.

10. Can an employee who is under the age of 65 apply for the withdrawal of the contribution balance of his/her own?

The employee who is under the age of 65 can only apply to withdraw all or part of the funds under one of the following circumstances:

• There is a need to bear huge medical expenses due to serious injury or illness of his/her own

• Attained the age of 60 and is not engaged in any paid activities

• There is a need to bear huge medical expenses due to serious injury or illness of his/her spouse, any degree of lineal consanguinity or affinity

• Has been receiving disability pension from the Social Security Fund for more than one year

• Is currently receiving special disability subsidy from the Social Welfare Bureau

• Has humanitarian or other properly explained reasons

11. What does an employee need to do at termination of employment?

The employee can give instructions on how to handle the balance in the contribution sub-account to the fund management entity.

12. How can employees enquire their contribution history and the profit and loss details?

Employees can check their account details in the pension fund web enquiry system, mobile app or contact LFHL Pension Fund Hotline at 2870 0882 / 2870 0889. Employees may also contact the FSS for enquiries.

Non-Mandatory Central Provident Fund System – Interface between joint provident fund schemes and private pension plans

1. Is it a must for employees to participate in the joint provident fund scheme set up by the employer if the employees have participated in the private pension plan earlier?

No. Current employees who have already participated in the private pension plan can choose to interface with joint provident fund scheme, or stay in the private pension plan. However, local employees who have not joined the private pension plan before can only choose to participate in the non-mandatory central provident fund system or not.

2. Must the terms and conditions in the private pension plan that interfaces with the joint provident fund scheme be the same as the standard terms and conditions in the joint provident fund scheme?

No. Terms and conditions that are more favorable to the employees in the private pension plan must be offered to those employees that interface from the private pension plan to the joint provident fund scheme.

3. Will the contribution time in the previous private pension plan be counted towards the contribution time of the joint provident fund scheme after the interface?

Yes. The contribution time of the employee in the private pension plan and the joint provident fund scheme will be combined together.

4. Can the accrued benefits in the private pension plan be withdrawn before the age of 65?

The accrued benefits before the interface can be withdrawn according to the rules of the private pension plan.

Non-Mandatory Central Provident Fund System – Individuals

1. If an employer does not participate in the non-mandatory central provident fund system, can the employees join on their own?

Any Macao SAR resident who has attained the age of 18, or under the age of 18 but has enrolled in the social security system can open and own an individual provident fund scheme.

2. Can an individual own several individual provident fund schemes at the same time?

Yes. An individual can own one individual provident fund scheme in each fund management entity.

3. Can the contributions to individual provident fund scheme be increased, reduced or terminated?

Yes. And the account owner must inform the fund management entity in writing beforehand.

4. Can the balance be withdrawn after the contribution payment is terminated?

To withdraw all or part of funds, the participant has to attain the age of 65, or under one of the following circumstances:

• There is a need to bear huge medical expenses due to serious injury or illness of his/her own

• Attained the age of 60 and is not engaged in any paid activities

• There is a need to bear huge medical expenses due to serious injury or illness of his/her spouse, any degree of lineal consanguinity or affinity

• Has been receiving disability pension from the Social Security Fund for more than one year

• Is currently receiving special disability subsidy from the Social Welfare Bureau

• Has humanitarian or other properly explained reasons

5. Can a lump sum payment of one year’s contributions be paid in advance?

No. The contributions of an individual provident fund scheme must be paid monthly.

6. How to make contributions towards the individual provident fund scheme?

The participants can choose

1. to make payments through direct debit from his/ her bank account in Bank of China, Tai Fung Bank Limited or "OCBC" MACAU; or

2. to pay the contributions to the fund management entity in person.