A monthly budget after MPF, tax and your expenses.
Monthly surplus
—
MPF (monthly)
—
Salaries tax (monthly)
—
Net pay
—
Your breakdown
Updates live as you type| Step | Amount (HKD) |
|---|
Worked example
Take a single earner on HK$40,000 a month. The employee MPF contribution is 5 percent, which is HK$2,000 a month before the cap, but relevant income is capped at HK$30,000 so the contribution is HK$1,500 a month. Salaries tax is estimated on the annual figure of HK$480,000 less HK$18,000 of MPF, against the basic allowance, which works out to about HK$2,925 a month after the one-off Budget reduction. That leaves net pay of roughly HK$35,575 a month. Subtracting HK$15,000 of rent, rates and utilities, HK$4,000 of other fixed costs and HK$8,000 of variable spending, a total of HK$27,000, leaves a monthly surplus of about HK$8,575. The 50/30/20 guide would suggest directing around HK$7,115 of net pay to saving, so this budget is on track.
How it is calculated
The tool first turns gross pay into net pay by removing the two mandatory deductions. The MPF contribution is 5 percent of monthly relevant income, capped at HK$1,500 once income passes HK$30,000 a month, and the salaries tax is estimated on the annual income less the MPF, using the single basic allowance and the lower of the progressive and standard computations after the Budget reduction. Net pay is gross less MPF less that monthly tax. It then subtracts your rent, fixed costs and variable spending to find the monthly surplus, which is negative if you overspend. The 50/30/20 guide is offered as a reference, suggesting roughly half of net pay for needs, a third for wants and a fifth for saving, though Hong Kong rents often push the needs share higher.