Hong Kong MPF Contribution Guidelines

1. Find out how to set up an MPF account?

Organising an MPF account is a straightforward process. Hong Kong’s Necessary Provident Fund Schemes Authority (“MPFA”) maintains a list of MPF Approved Trustees which employers may consider. As an example, the HSBC MPF plan provides individuals with a wide number of investment schemes comparable to these centered more on world bonds, Hong Kong and Chinese equities and so on. Simply contact your chosen MPF providers and complete the related employer application types for the scheme of your choice. Once an employer has successfully enrolled in an MPF scheme, they will be issued an employer’s identification number, demonstrating your obligation to assist your employees of their retirement schemes.


2. What are an employers’ obligations under the Hong Kong MPF regulations?

Employers should also full the one-time obligation of helping their workers in opening MPF accounts. Aside from exempt individuals, an employer should enroll each full-time and part-time staff who’re at the very least 18 however under 65 years of age in an MPF scheme within the primary 60 days of their employment. Nonetheless, if an employment relationship ends previous to the 60th day of employment, no MPF arrangement is required.

Upon successful enrollment, employers must meet ongoing obligations of remitting contributions to their staff MPF schemes as soon as each contribution period. Contributions for monthly-paid full-time workers are typically made on the 10th day of each month.

Employers and staff are every required to make regular necessary contributions to an employees MPF scheme. The MPF worker contribution and MPF employer contribution ought to each be 5% of the employee’s related earnings, topic to relevant revenue levels. For a monthly-paid worker, the minimal and maximum related income ranges are $7,one hundred and $30,000 respectively.

To make payments to their employees, employers are required to calculate their employee’s relevant revenue and the quantity of necessary contribution that have to be made for each contribution period. The employer must then deduct the calculated quantity from their employee’s revenue and remit that sum to their MPF account.

3. What are the employee contribution guidelines under the Hong Kong MPF laws?

Workers do not face as many compliance obligations as their employers do. Nevertheless, it is vital for workers to make sure that they make the regular necessary contribution of 5% of their related earnings to their relevant scheme as talked about above.

4. Are there exemptions under a Hong Kong MPF contribution rules?

Not all workers working in Hong Kong must be enrolled under an MPF scheme. Expatriates residing in Hong Kong for employment functions can get hold of permission to be exempted by the Hong Kong Government. Permission can only be granted if the worker in question is either a member of an abroad retirement scheme, or will reside in Hong Kong for a period of thirteen months or less.

5. Penalty

Within the event an employer fails to adright here to their MPF obligations, the MPFA will challenge the employer with a “surcharge discover”. This discover will impose a 5% surcharge on default contributions and the surcharge obtained will go completely to the worker’s MPF account. In addition, defaulting on contributions is a criminal offence and the defaulter is liable to a most penalty of a HK$450,000 fine and imprisonment for four years. Employers who’ve didn’t comply with their MPF employer obligations are liable to potential financial penalties of HK$5,000, or 10% of the default amount, whichever is larger, on the defaulting employer.


We understand that matters regarding MPF calculation and payroll administration are time-consuming tasks that require a significant amount of the company’s resources. FastLane can manage these essential business tasks, resembling payroll, MPF account setup and your employee’s enrollment into your chosen MPF scheme on your behalf.

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