Hong Kong MPF contributions explained for employers
Hong Kong MPF contributions are 5 percent of an employee's pay from the employer and 5 percent from the employee, within set income limits. Every employer in Hong Kong with staff aged 18 to 64 must run this scheme. This guide covers the rate, the limits, the due date and what to do for new hires.
General information only. It is not legal or financial advice. Check the Mandatory Provident Fund Schemes Authority (MPFA) for your own case.
The basic rate: 5 percent from each side
The Mandatory Provident Fund (MPF) is Hong Kong's compulsory retirement savings system. The employer pays 5 percent of the employee's relevant income. The employee pays another 5 percent, which the employer deducts from pay. Both amounts go to the MPF scheme the employee belongs to.
Relevant income is wider than base salary. It includes wages, leave pay, fees, commissions, bonuses, gratuities, perquisites and allowances. It does not include severance payments or long service payments. Check each pay item before you run payroll.
Sources: Mandatory Provident Fund Schemes Authority, "Mandatory Contributions", mpfa.org.hk/en/mpf-system/mandatory-contributions.
Income limits for monthly paid staff
The 5 percent rate only applies inside a band. For staff paid monthly, the band runs from HK$7,100 to HK$30,000. The top level has been HK$30,000 a month since June 2014.
- Below HK$7,100 a month: the employer pays 5 percent. The employee pays nothing.
- HK$7,100 to HK$30,000 a month: both sides pay 5 percent.
- Above HK$30,000 a month: both sides pay a flat HK$1,500.
For example, an employee earning HK$20,000 a month has HK$1,000 paid by the employer and HK$1,000 by the employee. An employee earning HK$50,000 a month still has only HK$1,500 from each side. Many employers add voluntary contributions on top, but the law does not require that.
Sources: Mandatory Provident Fund Schemes Authority, "Mandatory Contributions", mpfa.org.hk/en/mpf-system/mandatory-contributions.
Daily and weekly paid staff
Staff paid by the day or week have their own limits. For daily pay, the lower level is HK$280 and the upper level is HK$1,000. For weekly pay, the levels are HK$1,960 and HK$7,000, which are those daily figures times seven. The same logic applies to other pay periods: the levels follow the number of days in the period.
Contributions are 5 percent of the income inside the band, capped at the upper level. If a worker earns less than the lower level for the period, the employer still pays its 5 percent and the worker pays none.
Sources: Mandatory Provident Fund Schemes Authority, "Mandatory Contributions", mpfa.org.hk/en/mpf-system/mandatory-contributions.
When contributions are due
The usual contribution day is the 10th of each month. Contributions for a wage period are due by the contribution day after that period ends. For example, the September wage period is due by 10 October.
If the 10th falls on a Saturday or a public holiday, the date moves to the next eligible day. The same happens when a gale or black rainstorm warning is in force, or when an eMPF Platform suspension affects the date. The eMPF Platform is the central online system for MPF administration, and its rollout across schemes began in 2024. Employers use it to calculate and pay contributions.
Pay on time. Late or missed payments can be a criminal offence for an employer, and the MPFA can also bring civil claims to recover unpaid contributions.
Sources: Mandatory Provident Fund Schemes Authority, "Mandatory Contributions", mpfa.org.hk/en/mpf-system/mandatory-contributions; MPFA, "Offences and Penalties", mpfa.org.hk/en/mpf-system/mandatory-contributions/offences-and-penalties.
New hires and the first 30 days
New employees get a contribution holiday for their first 30 days. During that time the employee does not pay. The employer, however, contributes from the first day of employment. The first contributions are due by the contribution day after the calendar month that contains the employee's 60th day of work.
Plan for this in payroll. A new hire may owe nothing from their pay in month one, while your own share still builds up. Pick the scheme early and enroll the person within the 60 day window.
Some casual workers in construction and catering are hired for under 60 days. If they join a Master Trust Scheme, contributions are worked out the same way. No contribution holiday applies, and payment is due within 10 days after each contribution period ends.
Sources: Mandatory Provident Fund Schemes Authority, "Mandatory Contributions", mpfa.org.hk/en/mpf-system/mandatory-contributions.
Self-employed people and a quick checklist
Self-employed people also pay 5 percent of relevant income, with the same HK$7,100 and HK$30,000 monthly levels. They choose monthly or yearly payments. A freelancer or contractor who runs their own business may fall under this rule, so ask which category applies before you hire.
- Check each pay item against the relevant income definition.
- Apply the correct income band for the pay period.
- Deduct the employee share, then add the employer share.
- Pay by the contribution day.
- Keep a record for every employee, new hires included.
Sources: Mandatory Provident Fund Schemes Authority, "Self-employed Persons", mpfa.org.hk/en/mpf-system/mandatory-contributions/self-employed-persons.