How to Easily Handle Hong Kong Company MPF A Complete Guide

How to Easily Handle Mandatory Provident Fund MPF for Hong Kong Companies A Comprehensive Guide

With the continuous development of the global economy, more and more companies choose to establish branches or register in Hong Kong. As an international financial center, Hong Kong attracts a large number of enterprises and investors with its sound legal system and efficient business environment. However, while enjoying these advantages, companies must also face some compliance requirements, among which the Mandatory Provident Fund MPF system is one of them.

What is MPF?

MPF is a mandatory retirement protection plan implemented in Hong Kong, aimed at providing long-term stable retirement savings for employees. According to the Mandatory Provident Fund Schemes Ordinance, all employed persons, including local and foreign employees, who are 18 years old or above and earn more than HKD 7,100 per month, require their employers to contribute to the MPF scheme. Since its implementation in 2000, this system has become an important part of Hong Kong's labor market.

In recent years, with the aggravation of population aging and changes in the labor market, the MPF system has been continuously optimized and improved. For example, at the beginning of 2025, the Legislative Council of Hong Kong passed the draft amendment to the Mandatory Provident Fund Schemes Ordinance 2025, further simplifying some procedures and increasing the penalties for violations. These adjustments not only enhance the flexibility of the system but also provide employers with more convenient operating methods.

Employer Responsibilities and Obligations

For businesses, MPF is not an additional burden, but rather a part of fulfilling social responsibility. Specifically, employers need to undertake the following major responsibilities

1. Choose an Appropriate MPF Plan

Currently, there are several approved MPF plan providers in Hong Kong, known as trustees, such as HSBC and Hang Seng Bank. After a company is established, it should quickly select a suitable plan and complete the registration process. It is recommended to consider factors such as fee structure and service quality when making the choice to ensure that the actual needs of the enterprise are met.

2. Regularly Submit Contribution Records

The monthly contribution amount for each employee equals 5% of their salary, of which 2% is paid by the employer and the other 3% is deducted from the employee's salary. Employers must ensure that these funds are transferred to the designated account on time and retain complete contribution records for at least seven years for audit purposes.

3. Handle Departing Employee Affairs

When an employee leaves, the company should promptly notify the MPF plan trustee and assist the employee in transferring the account balance to the plan provided by the new employer, or retain a personal account to continue accumulating returns. This step may seem simple, but improper handling could lead to unnecessary troubles.

4. Comply with the Latest Regulations

The MPF system is not static; it has been updated multiple times in recent years to address new challenges in social and economic development. Companies should stay informed about relevant policies, regularly attend training courses, or consult professionals to avoid fines or other legal risks due to negligence.

Practical Tips and Considerations

To help small and medium-sized enterprises manage MPF affairs more efficiently, the following practical suggestions may provide inspiration

Utilize Electronic Service Platforms

With the acceleration of digital transformation, Hong Kong has launched an electronic MPF account service platform, allowing users to query account status, download reports, and perform transfer operations online. This paperless method saves time and reduces the probability of errors, making it worth promoting.

Hire Professional Advisory Teams

If you find managing MPF affairs too cumbersome, consider hiring professional financial advisors or human resources companies to handle it on your behalf. They typically have extensive experience and can resolve various complex issues in the shortest possible time.

Plan for Future Growth in Advance

For companies in the expansion phase, they should formulate long-term human resource strategies early on, including how to balance short-term cost expenditures with long-term employee benefit investments. Reasonably arranging MPF-related matters helps enhance team cohesion and attract more outstanding talent.

Conclusion

In summary, although the MPF system adds certain pressure to the daily operations of Hong Kong companies, it also creates more value for businesses. As long as we fully understand the relevant regulations, make good use of existing resources, and adhere to compliant operations, we can achieve a win-win situation while meeting legal requirements. We hope this guide will help you easily handle MPF matters and make your career path smoother!