HK Mpf

Section 1 -- Quick Reference

Section 1 -- Quick Reference

Field	Value
Country / Territory	Hong Kong SAR, China
System	Mandatory Provident Fund (MPF / 強制性公積金)
Currency	HKD (Hong Kong Dollar) only
Governing legislation	Mandatory Provident Fund Schemes Ordinance (MPFSO), Cap. 485
Regulator	Mandatory Provident Fund Schemes Authority (MPFA / 積金局)
Portal	mpfa.org.hk
Validated by	Pending — requires sign-off by a Hong Kong CPA or MPF intermediary
Skill version	1.0

Core Contribution Parameters (2024/25)

Core Contribution Parameters (2024/25)

Parameter	Amount
Employer mandatory contribution rate	5% of relevant income
Employee mandatory contribution rate	5% of relevant income
Maximum relevant income	HK$30,000/month
Minimum relevant income	HK$7,100/month
Maximum mandatory contribution (each party)	HK$1,500/month
Minimum mandatory contribution (each party)	HK$355/month (if income ≥$7,100)
Self-employed mandatory rate	5% of relevant income
Self-employed max contribution	HK$1,500/month or HK$18,000/year
Voluntary contribution (TVC) -- tax deduction cap	HK$60,000/year

Who Must Join MPF

Who Must Join MPF

Category	MPF Required	Exceptions
Employees aged 18--64	YES	Domestic helpers, self-employed hawkers, statutorily exempt
Self-employed aged 18--64	YES
Casual employees (<60 days in construction/catering)	YES (Industry Scheme)
Part-time employees	YES (if employed ≥60 days)
Employees aged 65+	NO (can join voluntarily)
Domestic helpers	NO (exempt)
Civil servants (pre-2000 terms)	NO (covered by pension)
ORSO scheme members	Exempt if scheme is MPFSO-exempted

Conservative Defaults

Conservative Defaults

Ambiguity	Default
Unknown relevant income	Apply minimum ($7,100 threshold) until confirmed
Unknown employment start date	Assume 60-day rule applies (must enrol within 60 days)
Self-employed vs employee	Check control test; if ambiguous, treat as employee
Unknown fund choice	Employee must be given choice; default = employer's scheme
TVC vs employer voluntary	TVC = tax deductible; employer voluntary (SVC) = not deductible to employee

Section 2 -- Rules

2.1 Mandatory Contributions

2.1 Mandatory Contributions

Party	Rate	On	Monthly Cap	Monthly Floor
Employer	5%	Relevant income	HK$1,500 (on $30,000)	No minimum (pays even if income <$7,100)
Employee	5%	Relevant income	HK$1,500 (on $30,000)	HK$0 if income <$7,100
Self-employed	5%	Relevant income	HK$1,500/month	HK$0 if income <$7,100

Important distinctions:

• If employee earns <HK$7,100/month: employer still contributes 5%, but employee contributes 0%
• If employee earns >HK$30,000/month: both capped at HK$1,500/month each
• Relevant income includes: wages, salary, leave pay, fees, commission, bonus, gratuity, perquisites (monetary)

2.2 Relevant Income Definition (MPFSO Sec. 2)

• Relevant Income -- Included — Wages, salary, overtime pay; Commission, bonus; Leave pay (annual, sick, maternity, paternity); Fees, tips; End-of-year payments, gratuities (MPFSO Sec. 2)
• Relevant Income -- Excluded — Severance payment (Employment Ordinance); Long service payment (Employment Ordinance); Housing benefit / housing allowance (non-cash only); Reimbursement of expenses (MPFSO Sec. 2)

2.3 Self-Employed Persons

2.3 Self-Employed Persons

Rule	Detail
Mandatory contribution	5% of relevant income
Relevant income	Net self-employment income (assessable profits for tax)
Contribution frequency	Monthly or annually (taxpayer's choice)
Monthly basis	5% of monthly relevant income, max $1,500/month
Annual basis	5% of annual relevant income, max $18,000/year
Income below $7,100/month	No mandatory contribution required
Deadline (monthly)	Within 30 days after end of contribution period
Deadline (annual)	Within 30 days after end of financial year

2.4 Enrolment Requirements

2.4 Enrolment Requirements

Scenario	Deadline
New employee	Employer must enrol within 60 days of start
New self-employed	Must join MPF scheme within 60 days of becoming self-employed
Change of employer	New employer re-enrols; employee can consolidate old accounts
Casual employees (construction/catering)	Day 1 enrolment via Industry Scheme

2.5 Vesting

2.5 Vesting

Type	Vesting Rule
Employee mandatory contributions	100% vested immediately (employee's money)
Employer mandatory contributions	100% vested immediately
Employer voluntary contributions	May have vesting schedule (per scheme rules)
Employee voluntary contributions	100% vested immediately

Section 3 -- Voluntary Contributions and Tax Deductions

3.1 Tax Deductible Voluntary Contributions (TVC)

3.1 Tax Deductible Voluntary Contributions (TVC)

Feature	Detail
Legislation	IRO Sec. 26J (effective 2019/20 onwards)
Who can claim	Any MPF scheme member (employee, self-employed, non-employed)
Contribution to	Special TVC account in MPFA-approved scheme
Tax deduction limit	HK$60,000 per year
Combined cap	TVC + QDAP (qualifying deferred annuity) together capped at HK$60,000
Scheme	Must be designated TVC account (NOT regular voluntary/SVC)
Withdrawal	Only at age 65, retirement, permanent departure, or other qualifying events
Tax deduction claimed on	BIR60 (Part 8.5)

3.2 Special Voluntary Contributions (SVC) -- Non-Deductible

3.2 Special Voluntary Contributions (SVC) -- Non-Deductible

Feature	Detail
Employer SVC	Employer contributes extra; may have vesting schedule
Employee SVC	Employee contributes extra to existing scheme; NOT tax-deductible
Difference from TVC	SVC goes into regular account; TVC goes into special TVC account
Withdrawal rules	Per scheme governing rules (may allow earlier withdrawal than TVC)

3.3 Computation of Tax Benefit (TVC)

• TVC Tax Benefit Computation — Annual TVC contribution (max $60,000) × Marginal tax rate (2% to 17% progressive, or 15% standard) = Tax saving Example: - TVC contribution: $60,000 - Marginal rate: 17% - Tax saving: $60,000 × 17% = $10,200

Section 4 -- Computation Examples

Example 1 -- Standard Employee (Income $25,000/month)

Example 1 -- Standard Employee (Income $25,000/month)

Party	Calculation	Monthly Amount
Employer	5% × $25,000	$1,250
Employee	5% × $25,000	$1,250
Total to MPF account		$2,500

Annual: Employee contributes $15,000 (deductible up to $18,000 cap for salaries tax).

Example 2 -- High-Income Employee ($80,000/month)

Example 2 -- High-Income Employee ($80,000/month)

Party	Calculation	Monthly Amount
Employer	5% × $30,000 (capped)	$1,500
Employee	5% × $30,000 (capped)	$1,500
Total to MPF account		$3,000

Annual employee mandatory: $18,000 (fully deductible -- equals cap).

Example 3 -- Low-Income Employee ($6,000/month)

Example 3 -- Low-Income Employee ($6,000/month)

Party	Calculation	Monthly Amount
Employer	5% × $6,000	$300
Employee	0% (below $7,100 threshold)	$0
Total to MPF account		$300

Example 4 -- Self-Employed (Annual Profit $500,000)

Example 4 -- Self-Employed (Annual Profit $500,000)

Basis	Calculation	Annual Amount
Monthly equivalent	$500,000 / 12 = $41,667
Mandatory (capped)	5% × $30,000 × 12	$18,000/year
Additional TVC (optional)	Up to $60,000	Tax-deductible
Maximum total		$78,000/year

Section 5 -- Filing and Administrative

5.1 Employer Obligations

5.1 Employer Obligations

Obligation	Deadline
Enrol new employee	Within 60 days of employment start
Pay contributions	Within 10 days after end of contribution period (wage period)
Provide pay-record	Monthly to employee showing MPF details
Report cessation	Notify trustee of employee termination within 30 days
Maintain records	7 years

5.2 Penalties for Non-Compliance

5.2 Penalties for Non-Compliance

Offence	Penalty
Failure to enrol employee	Fine up to HK$350,000 + imprisonment up to 3 years
Late contribution (employer)	5% surcharge on outstanding amount
Failure to pay contribution	Fine up to HK$350,000 + imprisonment up to 3 years
Deducting from employee wages for employer share	Fine up to HK$350,000 + imprisonment up to 3 years
Self-employed failure to join	Fine up to HK$50,000 + imprisonment up to 6 months

5.3 Withdrawal Events (Mandatory + TVC)

5.3 Withdrawal Events (Mandatory + TVC)

Event	Requirement
Retirement (age 65)	Full withdrawal permitted
Early retirement (age 60)	Must provide statutory declaration of permanent cessation of employment
Permanent departure from HK	Statutory declaration + evidence
Total incapacity	Medical evidence
Terminal illness	Medical evidence
Small balance (account <$5,000)	No contributions for 12 months + statutory declaration
Death	Paid to estate/beneficiary

Section 6 -- Edge Cases

6.1 Multiple Employments

• Multiple Employments — Each employer must contribute separately; Employee contributes 5% to each scheme; Combined employee contributions may exceed $18,000/year tax deduction cap; Tax deduction still capped at $18,000 for mandatory across all employments

6.2 Employee Becomes Self-Employed

• Employee Becomes Self-Employed — Employee account becomes "preserved" on leaving employment; Self-employed opens new self-employed account; May consolidate accounts into one personal account; Previous employer contributions preserved until qualifying event

6.3 Part-Time / Multiple Part-Time Jobs

• Part-Time / Multiple Part-Time Jobs — Each employer with ≥60 days employment must enrol; Income threshold ($7,100) applies per employment separately; Part-time worker earning $5,000 from employer A and $4,000 from employer B: Employer A: contributes 5% × $5,000 = $250; employee contributes $0 (below threshold); Employer B: contributes 5% × $4,000 = $200; employee contributes $0 (below threshold)

6.4 Non-Monetary Benefits

• Non-Monetary Benefits — Non-cash benefits (housing, company car) are NOT relevant income for MPF; Only monetary payments count towards MPF calculation; Exception: if benefit is commutable to cash at employee's option, it may be relevant income

6.5 MPF Offset Mechanism

6.5 MPF Offset Mechanism

Item	Rule
Severance payment offset	Employer may offset SP against employer MPF contributions (from accrued benefits derived from employer contributions)
Long service payment offset	Same as above
Abolition (planned)	Government announced phased abolition from 2025 -- transition period applies
Current position (2024/25)	Offset still permitted during transition

Section 7 -- MPFA Approved Schemes

Section 7 -- MPFA Approved Schemes

Scheme Type	Description
Master Trust Scheme	Most common; pooled scheme managed by trustees (e.g., Manulife, AIA, HSBC, Sun Life)
Employer-Sponsored Scheme	Set up by single employer for its employees
Industry Scheme	For casual employees in construction and catering

Current approved trustees (major):

• HSBC Provident Fund Trustee
• Manulife (International) Limited
• AIA Company (Trustee)
• Sun Life Trustee Company
• Bank Consortium Trust Company
• BOCI-Prudential Trustee Limited

Section 8 -- Reference Material

Section 8 -- Reference Material

Topic	Reference
MPFSO (full ordinance)	Cap. 485, Laws of Hong Kong
Contribution rules	MPFSO Sec. 7A, 7C, Schedule 2
Relevant income	MPFSO Sec. 2, Schedule 1
Self-employed	MPFSO Sec. 6C, 7D
Tax deduction (TVC)	IRO Sec. 26J
Tax deduction (mandatory)	IRO Sec. 12(1)(e)
Enrolment	MPFSO Sec. 7, 7A
Penalties	MPFSO Sec. 43A, 43B, 43E
Withdrawal	MPFSO Schedule 1, Part 1--8
Offset	MPFSO Sec. 12A, Schedule 12
MPFA official site	mpfa.org.hk
Fund performance	MPFA Fund Performance Platform
Minimum/maximum income	Government Gazette (updated periodically)

Disclaimer

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