The Mandatory Provident Fund (MPF) is Hong Kong's compulsory retirement savings system. Almost every employer must enrol its employees aged 18 to 64 in an MPF scheme within the first 60 days, and pay contributions every month: 5% as employer and 5% deducted from the employee, subject to the income thresholds, paid to the trustee by the 10th of the following month.
Late payment triggers a 5% surcharge, and failing to enrol or to pay over deducted contributions can lead to prosecution.
At a glance
- Who must be enrolled
- Employees aged 18 to 64, full-time and part-time, employed for 60 days or more (with limited exemptions)
- Enrolment deadline
- Within the first 60 days of employment (casual employees in catering and construction: from day one under industry schemes)
- Contribution rate
- 5% employer + 5% employee, on relevant income
- Minimum relevant income
- HK$7,100 a month: below this the employee does not contribute; the employer still does
- Maximum relevant income
- HK$30,000 a month: mandatory contributions capped at HK$1,500 each
- Contribution day
- On or before the 10th day of the following month
Who is covered and who is exempt
Most employees and self-employed persons aged 18 to 64 are covered. The main exemptions include:
- domestic employees;
- persons covered by statutory pension or provident schemes, such as civil servants;
- members of MPF-exempted occupational retirement schemes;
- persons from outside Hong Kong employed here for not more than 13 months, or covered by an overseas retirement scheme (conditions apply);
- employees under 18 or aged 65 or above (voluntary contributions are possible).
Self-employed persons must enrol themselves in an MPF scheme and contribute 5% of their relevant income, subject to the same thresholds.
Working out the contribution
| Monthly relevant income | Employer contribution | Employee contribution |
|---|---|---|
| Less than HK$7,100 | 5% of relevant income | Nil |
| HK$7,100 to HK$30,000 | 5% of relevant income | 5% of relevant income |
| More than HK$30,000 | HK$1,500 | HK$1,500 |
"Relevant income" includes wages, salary, leave pay, fees, commissions, bonuses, gratuities and allowances expressed in money, but not housing benefits in kind or severance and long service payments. For a new employee there is a contribution holiday for the employee's own share in the first 30 days and the first incomplete wage period, but the employer's contribution is payable from the first day.
Penalties and enforcement
| Offence | Maximum penalty |
|---|---|
| Failing to enrol an employee in an MPF scheme | Fine of HK$350,000 and 3 years' imprisonment |
| Deducting the employee's contribution but failing to pay it to the trustee | Fine of HK$450,000 and 4 years' imprisonment |
| Late or unpaid contributions | Contribution surcharge of 5% of the arrears, plus a financial penalty and recovery action by the MPFA |
Abolition of the MPF offsetting arrangement
From 1 May 2025, employers can no longer use the accrued benefits from their mandatory MPF contributions made on or after that date to offset severance payments or long service payments. Contributions and benefits from before that date continue to be treated under transitional rules. Employers should budget for severance and long service payments separately; a Government subsidy scheme is available for a period to help employers adjust.
- Choosing an MPF scheme and enrolling employees within the 60-day window.
- Calculating monthly contributions, including bonuses and commissions, and submitting remittance statements on time.
- Handling joiners and leavers, and the related IR56 forms.
- Reviewing contribution records if you suspect past errors, and helping to put them right.
Official references
- Mandatory Provident Fund Schemes Ordinance (Cap. 485)
- Mandatory Provident Fund Schemes Authority: employer guidance, www.mpfa.org.hk
- Labour Department: abolition of the MPF offsetting arrangement, www.labour.gov.hk