MPF Contribution Guide for Hong Kong All Key Details Here

A Guide to Mandatory Provident Fund MPF Contributions in Hong Kong Everything You Need to Know

In Hong Kong, the Mandatory Provident Fund MPF is a wide-reaching system that plays a crucial role in securing retirement benefits for every working individual. Whether you are an employee or employer, understanding the rules, contribution rates, and related details of MPF is essential for protecting your rights and planning for the future. Especially against the backdrop of recent economic fluctuations and increasingly diverse employment arrangements, the MPF scheme has been continuously adjusted to meet evolving societal needs.

1. What is the Mandatory Provident Fund?

The MPF is a compulsory retirement savings scheme established in Hong Kong in 2000. Its purpose is to provide retirement support for working individuals. According to regulations, all employees aged between 18 and 64 who work in Hong Kong and meet eligibility criteria, as well as self-employed individuals, must join an approved MPF scheme. Both employers and employees are required to contribute a certain percentage of the employee’s income into the MPF account, ensuring financial security after retirement.

2. Who Is Required to Contribute?

According to the Mandatory Provident Fund Schemes Authority MPFA, the following individuals are required to participate in an MPF plan

Employees Local and foreign workers aged 18 to 64 who are employed in Hong Kong.

Employers All companies or sole proprietors who hire staff.

Self-Employed Individuals Freelancers and independent contractors must also make contributions themselves.

Certain groups are exempt, including civil servants, foreign domestic helpers, and specific categories of individuals.

3. Contribution Rates and Income Limits

Under current regulations, both employees and employers are required to contribute 5% of the employee’s relevant income, subject to minimum and maximum income thresholds

Minimum Relevant Income Level HK$7,100 per month

Maximum Relevant Income Level HK$30,000 per month

For example, if the monthly salary is HK$30,000, both the employee and employer contribute HK$1,500 HK$30,000 × 5%. If the monthly salary is below HK$7,100, no contribution is required.

It's worth noting that due to rising inflation and living costs, there have been increasing calls to raise the MPF contribution cap. In 2025, the government conducted public consultations on whether to increase the upper limit, although no immediate changes were made. The issue remains under close observation.

4. How Do Self-Employed Individuals Contribute?

Self-employed individuals must calculate their annual income independently and submit income proof to an MPF trustee. Annual contributions must be at least 5% of their relevant income, also subject to the minimum and maximum income limits. For instance, if a self-employed person earns HK$360,000 annually HK$30,000 monthly, they must contribute HK$18,000 HK$360,000 × 5% per year.

5. Contribution Process and Timeline

For both employees and employers, the MPF contribution process follows a standardized procedure

1. Enrollment in a Plan Employers must assist new employees in joining an approved MPF scheme.

2. Monthly Contributions Employers must pay both the employee’s and employer’s contributions into the designated MPF account within seven working days after salary payment.

3. Record Keeping and Reporting Employers are required to maintain contribution records and regularly provide employees with contribution statements.

To improve efficiency and transparency, the MPFA encourages employers to submit contribution data electronically.

6. Investment Options and Fund Management

MPF is not a simple savings account but rather an investment vehicle. Each participant's contributions are invested in various fund products, such as equity funds, bond funds, and money market funds. Choosing the right investment strategy is vital for building up retirement assets.

In 2025, the MPFA introduced Core Funds as default investment options, designed to offer members who do not actively select funds a balanced, cost-effective investment channel with moderate risk. More trustees are also offering Environmental, Social, and Governance ESG-themed funds to meet growing demand for sustainable investing.

7. Handling Special Employment Situations

1. Short-Term Employment Employees and employers may be exempt from contributions if the employment period is less than 60 days.

2. Temporary or Part-Time Employees As long as they meet age and income requirements, part-time or temporary workers must still contribute.

3. Changing Employers When changing jobs, employees can transfer funds from their previous employer’s MPF account to the new employer’s MPF plan, avoiding disruptions in contributions.

8. Common Misconceptions and Key Points to Note

Myth 1 MPF Equals Full Retirement Income

MPF is only part of retirement income and usually insufficient to maintain pre-retirement living standards. Additional personal savings or investments are recommended.

Myth 2 More Contributions Are Always Better

While contributions offer tax deductions, additional voluntary contributions beyond MPF limits do not qualify for further tax benefits. It's important to plan according to personal financial circumstances.

Myth 3 MPF Cannot Be Withdrawn Before Retirement

Generally, MPF can only be withdrawn upon reaching age 65 or early retirement, except in special cases such as permanent departure from Hong Kong, severe disability, or death.

9. Future Trends and Policy Developments

With the aging population intensifying concerns about the sustainability of the MPF system, media reports in 2025 indicated that the government was exploring ways to allow employees to increase voluntary contributions under certain conditions to enhance retirement protection. Strengthening investor education, improving investment choices, and enhancing management transparency are seen as key directions for future reforms.

MPF is not just a legal obligation but also a safeguard for every worker’s future. Whether you are an employer or employee, it is important to understand every detail of MPF contributions to ensure your own or your employees’ rights are protected. At the same time, developing a sound investment strategy will help maximize the value of these future savings.