Mandatory Provident Fund scheme Hong Kong MPF

The Mandatory Provident Fund Scheme Hong Kong MPF

The Mandatory Provident Fund (MPF) system is a compulsory retirement savings scheme established under the Mandatory Provident Fund Schemes Ordinance (Cap. 485). The Mandatory Provident Fund Schemes Authority (MPFA) regulates it. All employers and employees in Hong Kong must make regular contributions to an MPF scheme, subject to minimum and maximum income thresholds.

MPF Hong Kong

The MPF system covers all employees aged 18 to 65 employed under a continuous contract, and also self-employed persons. An employer must enrol a new employee in an MPF scheme within 60 days of the employment starting. Once enrolled, the employee becomes a scheme member and receives an investment choice from the range of funds offered by the approved trustee.

Hong Kong MPF Scheme

Each MPF scheme is a trust structure administered by an approved trustee licensed by the MPFA. The trustee manages contributions, provides investment options, and maintains preserved benefits for each member. A centralised electronic system, the eMPF platform, is being phased in to streamline administration across all MPF schemes.

Mandatory Provident Fund Contributions

Both the employer and the employee must contribute 5% of the employee's relevant income. Relevant income includes wages, salary, commissions, bonuses and tips, but excludes severance payment and long service payment. Where the employee's monthly relevant income is below HK$7,100, no employee contribution is required, but the employer must still contribute. Contributions are capped at a monthly relevant income of HK$30,000. The maximum mandatory contribution from each side is therefore HK$1,500 per month.

MPFA Hong Kong

The MPFA is the statutory body responsible for regulating and supervising the MPF system. It approves trustees, monitors compliance, and enforces contribution obligations. Employers who fail to make contributions on time may face surcharges and prosecution. The MPFA also administers the offsetting abolition subsidy scheme that took effect on 1 May 2025.

Contribution Obligations in Practice

An employer's obligation to contribute 5% of relevant income applies from the first day of employment. Contributions must be paid to the trustee within 10 days of the end of each contribution period. The employee's contribution is deducted from salary and remitted together with the employer's contribution. Preserved benefits remain in the member's account until retirement at age 65, or earlier under specified circumstances such as permanent departure from Hong Kong or total incapacity.