Law No. 7/2017 (Non-Mandatory Central Provident Fund System) came into force on 1 January 2018. The original provident fund individual accounts of residents have automatically become government-managed sub-accounts. Starting today, members of the public can pay contributions through the contribution schemes or transfer the balance of government-managed sub-account flexibly in order to appreciate value to their retirement through investment.
The purpose of establishing the non-mandatory central provident fund system is to strengthen the social protection for the residents of the Macao SAR in their old age and to complement the existing social security system. Since 2010, the SAR Government has opened provident fund individual accounts for eligible residents and injected start-up funds into their individual accounts, and it has made allocations for eight consecutive years after considering factors such as the fiscal surplus. Since the implementation of non-mandatory central provident fund system, the original provident fund individual accounts of residents have automatically become the government-managed sub-accounts, and the allocation of government funding continues to be managed by the Social Security Fund (abbreviated to FSS in Macao). Members of the public may transfer the balance of the government-managed sub-account flexibly, or pay contributions through the contribution schemes in order to accumulate wealth by appreciating value through investment, thus creating conditions for a more comfortable retirement.
The non-mandatory central provident fund system is composed of the joint provident fund scheme and individual provident fund scheme. Generally speaking, Macao SAR permanent residents or non-permanent residents aged 18 or older are eligible to participate in the schemes. The joint provident fund scheme is voluntarily set up by employer and voluntarily participated by employee, and both parties make contributions together. In order to encourage enterprises to shoulder social responsibilities on their own initiative and to improve the protection for employees in their old age, the contributions paid by the employer towards the joint provident fund scheme may be considered as the operating cost, and can be deducted from the taxable income of the profits tax and group II of salaries tax. In the first three years of the coming into force of the law, employer contributions can also enjoy an additional two times of the amount of tax concessions. As for the individual provident fund scheme, it is voluntarily set up by Macao SAR residents who make contributions themselves.
How the System Operates
YF Life Macau Central Provident Fund Scheme offers four funds, namely "YF Life Capital Conservative Fund", "YF Life Global Stable Fund", "YF Life Global Balanced Fund" and "YF Life Global Growth Fund", which aim at achieving ideal returns to the scheme members.
YF Life owns an experienced professional team in management of retirement funds. With the support of advanced computer administration system, this can provide quality administrative support to the scheme members.
Best of all, we offer comprehensive services, from plan structuring to registration, from employer and employee benefits calculation to payments, as well as the preparation of annual benefits statements, etc.
YF Life also provides cutting-edge online services around the clock, enabling employers and employees to view payment records, fund balances, and fund prices as well as download various forms, etc.