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Employers
Who should enrol in the MPF?
The MPF was introduced by the Government of the Hong Kong Special Administrative Region (SAR) in December 2000 to assist in the provision of retirement benefits for the workforce. All employees and self-employed persons aged between 18 and 65 are required to join MPF schemes, unless they are exempt.
What you need to do?
Under MPF legislation, employers must select an MPF service provider and enrol their employees in an MPF scheme. Both employers and employees make regular contributions into an employee's account, with benefits payable at retirement or under the circumstances given below (When can benefits be withdrawn?).
What is relevant income?
This includes wages, salaries, leave pay, fee, commission, bonus, gratuity, perquisite, or allowance (which includes housing allowance and housing benefit starting from 1 November 2008), expressed in monetary terms, paid or payable by an employer (directly or indirectly) to their employees, and in consideration of the employees' employment contract, but excluding long service payments and severance payments.
What are the minimum and maximum relevant income levels?
Employers and employees
| Payroll Frequency | Minimum Level of Relevant Income* (HKD) | Maximum Level of Relevant Income (HKD) |
|---|---|---|
| More frequently than on a monthly basis | 250 per day | 650 per day |
| Monthly | 6,500 per month | 20,000 per month |
| Less frequently than on a monthly basis | 6,500 per month, that amount as prorated | 20,000 per month, that amount as prorated |
Self-employed persons
| Contribution Frequency | Minimum Level of Relevant Income* (HKD) | Maximum Level of Relevant Income (HKD) |
|---|---|---|
| Monthly | 6,500 | 20,000 |
| Yearly | 78,000 | 240,000 |
* With effect from 1 November 2011
What are mandatory contribution levels?
Employers and employees
| Employee's monthly relevant income (HKD) | Employer's contribution (HKD) | Employee's contribution (HKD) |
|---|---|---|
| Less than 6,500 | 5% | Nil |
| 6,500 - 20,000 | 5% | 5% |
| More than 20,000 | 20,000 x 5% | 20,000 x 5% |
Self-employed persons
| Self-employed person's relevant income (HKD) | Contribution (HKD) | |
|---|---|---|
| Per month | Per year | |
| Less than 6,500 | Less than 78,000 | Nil |
| 6,500 - 20,000 | 78,000 - 240,000 | 5% |
| More than 20,000 | More than 240,000 | 20,000 x 5% per month, or 240,000 x 5% per year |
Additional voluntary contributions
You can make regular additional voluntary contributions for your employees as part of their employee benefits programme. You may request your employees to make additional voluntary contributions with employer's additional voluntary contributions via deductions from their salary as part of a contractual arrangement.
If your employees would like to make extra contributions on their own, they may request you to deduct the amount from their salary and send us the payment with their mandatory contributions. Alternatively, your employees can set up a Personal Contributions arrangement directly with us.
When can benefits be withdrawn?
Members can withdraw their accrued benefits in a lump sum at the age of 65. Accrued benefits may be paid before the age of 65 due to:
- early retirement between the ages of 60 and 64
- permanent departure from the Hong Kong SAR
- death (to be paid to their legal personal representative)
- total incapacity
- small balance account of HKD5,000 or less, provided certain conditions are met
Disclaimer
- The information contained in this section should not be relied upon as a substitute for professional advice in individual cases. Future changes in legislation, tax level, and practice could affect the information in this site.
- The information shown is based on data or information obtained from sources believed to be reliable but HSBC makes no representation and accepts no responsibility as to its accuracy or completeness and will not be held liable for damages arising out of any person's reliance upon this information.
- Information sourced from Mandatory Provident Fund Schemes Authority.
