Hong Kong employers may face punitive surcharges for late payments to staff pension accounts, with a proposed two-tier system aiming to increase compliance. Only one in six bosses settled arrears within the two-week deadline. The MPFA plans to present its proposal to the government by mid-year.

Hong Kong employers could face punitive surcharges for failing to clear outstanding contributions to their staff members’ pension accounts for extended periods, with data showing only one in six bosses settled the arrears within the prescribed two-week deadline. The Mandatory Provident Fund Schemes Authority (MPFA), which manages the city’s pension plans, said it was working on a “two-tier surcharge” mechanism proposal that it hoped to present to the government by the middle of the year. In a...