What is the pension in Hong Kong and what is the security system?

There is no pension system in Hong Kong. In recent years, the "MPF" social security system has been implemented, which is only some protection, but the amount is very limited. Simply put, "MPF" means that the employer pays 5% of the salary, and I pay 5%, and the designated qualified investment company is responsible for the investment. The accumulated amount is as much as 65 years old, and it is insecure.

How much is the pension in Hong Kong? What is the security system?

1. There is no pension system in Hong Kong. In recent years, the "MPF" social security system has been implemented, which is only some protection, but the amount is very limited.

Simply put, "MPF" means that the employer pays 5% of the salary, and I pay 5%, and the designated qualified investment company is responsible for the investment. When you are 65 years old, you can have as much money as you want.

2. Before the MPF system, only one type of people had a familiar pension system, namely, civil servants of the Hong Kong Government. However, in recent years, newly recruited civil servants no longer enjoy pensions.

Pension is a part of the service remuneration paid to employees of enterprises and institutions in one lump sum or in installments after retirement. The retirement measures formulated by enterprises should be conducive to improving the enthusiasm of employees, providing them with a sense of security, social stability and improving the efficiency of enterprises.

Pension means that a person retires from his job because of age or other factors. A large one-time reward that the company or employer must give. Retirement in different places and occupations has different designated ages or length of service. Employees over this age are considered unfit to continue working and can choose whether to continue working. At this time, the employer must take out a large sum of money as a reward for the hard life of the workers, as a source of living expenses and medical expenses for the elderly after not working.

Through the way of pension financing

In practice, the ways of raising pensions formulated by enterprises can be divided into two ways: funded retirement and unfunded retirement.

Retirement measures for deposit funds

Enterprises withdraw retirement funds and hand them over to independent trust institutions, such as banks or insurance companies for safekeeping and use. When employees retire, the trust pays the pension from the retirement fund. If an enterprise fails to fully fulfill its obligation to pay pensions, it may not withdraw pension funds.

Retirement measures for non-deposit funds

If the enterprise fails to withdraw the pension fund and deliver it to the trust institution for safekeeping and use, or if the enterprise withdraws the pension fund but delivers it to the trust institution for safekeeping and use, when the employee retires, the enterprise will raise funds by itself to pay the pension. Compared with the retirement method of deposit fund, this method lacks the protection of employees' pension.

Determination of pension payment

Retirement methods can be divided into defined contribution pension plan and defined benefit pension plan according to the way of determining pension payment.

The agreed deposit method is that the enterprise shall, in accordance with the provisions of the retirement measures, withdraw a certain amount of retirement fund every year and hand it over to the trust institution for safekeeping and use, and pay the retirement fund belonging to the employees to the retired employees when they retire. Usually, the fixed fund is withdrawn according to a certain proportion of the employee's salary (such as 5% of the salary) every year. The pension that employees can get when they retire depends on the amount deposited and the interest generated, and the enterprise does not guarantee the amount of pension payment. The amount of pension withdrawn by an enterprise in each period is the pension cost that should be confirmed in the current period. The accounting treatment of the agreed deposit method is relatively simple. When withdrawing, you can debit the pension cost and credit cash, and there are no other entries. Most enterprises in our country adopt this method.

The problem of providing for the aged will definitely be different in different regions, so you need to know more about specific policies in order to better safeguard your rights and interests. But the crux of the matter is that your rights and interests need to be maintained within a reasonable business scope. If you make some mistakes in your behavior, your rights and interests will be infringed, so you need to pay attention.