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Employees or Self-Employed
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.
Who should contribute to your MPF account?
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an employee's account, with benefits payable at retirement or under the circumstances given below (When can benefits be withdrawn?). Self-employed persons must enrol themselves in an MPF scheme.
What is relevant income?
If you are an employee, 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 you, and in consideration of your employment contract, but excluding long service payments and severance payments.
If you are a self-employed person, your relevant income is defined as the assessable profits stated in your most recent Notice of Assessment.
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
If you are an employee, you can make contributions voluntarily in addition to your mandatory contributions. Personal Contributions is a straightforward, convenient way which allows you to make regular additional contributions directly from your personal bank account to your MPF account. It is a totally private arrangement.
Alternatively, you may ask your employer to deduct additional contributions from your salary and pay them to us together with your mandatory contributions. In some circumstances, employers may set up an employee benefits programme with both employers and employees making additional contributions to the MPF scheme based on a contractual arrangement. These contributions are categorised as Voluntary Contributions. Please note that any additional amount paid with the contractual amount will require your employer's consent for withdrawal.
If you are a self-employed person, you can opt to make additional voluntary contributions (AVCs) in addition to mandatory contributions.
When can benefits be withdrawn?
Members can withdraw their accrued benefits in a lump sum at the age of 65. Before then, they may transfer their benefits from one MPF scheme to another or keep the benefits with their existing MPF service provider when changing jobs.
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
For a self-employed person's special responsibilities under MPF, click here.
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.
