Mandatory MPF contributions for employee and employer at 5 percent each.
Total monthly contribution
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Employee monthly
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Employer monthly
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Employee annual
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Total annual
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Worked example
Take an employee whose monthly relevant income is HK$30,000. Both the employee and the employer each contribute 5 percent of relevant income. Five percent of HK$30,000 is HK$1,500, which is exactly the monthly cap, because contributions are capped once income reaches HK$30,000 a month. So the employee pays HK$1,500 and the employer pays HK$1,500, a total of HK$3,000 a month into the MPF account. Over a full year that is HK$18,000 from each side, or HK$36,000 in total. If the same worker earned less than HK$7,100 a month the employee share would drop to zero, while the employer would still pay its 5 percent.
Item
Amount (HKD)
Monthly relevant income
30,000
Employee 5 percent (capped)
1,500
Employer 5 percent (capped)
1,500
Total monthly contribution
3,000
Total annual contribution
36,000
How it is calculated
Mandatory MPF contributions are set by two income thresholds and a flat 5 percent rate on each side. Below the minimum relevant income of HK$7,100 a month the employee is exempt and pays nothing, although the employer must still contribute its 5 percent. Between HK$7,100 and HK$30,000 a month both sides pay 5 percent of the actual income. Once income reaches the maximum relevant income of HK$30,000 a month, each side is capped at HK$1,500 a month, or HK$18,000 a year, no matter how much more is earned. The employee share, up to HK$18,000 a year, is also deductible against salaries tax, so a portion of your retirement saving lowers your tax bill at the same time.
Frequently asked questions
How much do I have to pay into MPF in Hong Kong?
Both you and your employer each pay 5 percent of your relevant income into your MPF account. If you earn less than HK$7,100 a month you pay nothing yourself, although your employer still pays its 5 percent. Contributions are capped once your income reaches HK$30,000 a month, so the most either side pays is HK$1,500 a month, or HK$18,000 a year.
What counts as relevant income for MPF purposes?
Relevant income includes wages, salary, leave pay, fees, commissions, bonuses, and gratuities paid to an employee. It excludes severance payments, long service payments, and certain one-off termination amounts. The MPFA publishes detailed guidance on borderline items such as housing allowances and meal subsidies.
Can I make voluntary contributions on top of the mandatory 5 percent?
Yes. Both employees and employers may make voluntary contributions above the mandatory 5 percent rate. Voluntary contributions are invested in the same MPF funds you choose for mandatory contributions, but only the mandatory employee portion up to HK$18,000 per year qualifies for the salaries tax deduction. Any voluntary amount above that threshold does not reduce your tax bill.
What happens to my MPF when I change jobs or leave Hong Kong?
When you leave an employer your accrued MPF benefits stay in your account and continue to grow until you reach age 65 or meet another early withdrawal condition such as permanent departure from Hong Kong. You can consolidate multiple MPF accounts from different employers into one account to simplify management and potentially reduce fees. Early withdrawal for reasons other than those permitted by law is not allowed.