What Is MPF And What Are The Contributions Required for Your Hong Kong Employees?

The Mandatory Provident Fund (MPF) is a compulsory pension scheme set up by the Hong Kong government. All regular, casual, and self-employed persons aged 18 to under 65 must join an MPF scheme.

Key Benefits of MPF:

• Provides a tax-efficient way to save for retirement. Contributions made by both employer and employee are tax-deductible.
• Portable: Employees can transfer their MPF account when changing jobs.
• Coverage details are available on the MPFA website.

Mandatory Contribution Rates:

• Monthly income below HK$7,100: Employer contributes 5%, employee does not contribute.
• Monthly income between HK$7,100 and HK$30,000: Employer and employee each contribute 5%.
• Monthly income above HK$30,000: Employer and employee each contribute a maximum of HK$1,500.

Requirements for Employer Contributions:

• Employee must be hired first and employed in Hong Kong.
• First contribution is due after 60 days of employment.
• Eligibility depends on where the employment contract was signed, where salary is paid (only payments through HK bank accounts count), and where the employee carries out their duties.
• MPF holiday may apply if the employee has not completed a full month of employment.

MPF Withdrawal Rules:

• Employees above 65 can withdraw their MPF.
• Employees below 65 may withdraw if permanently leaving Hong Kong, suffering from a terminal illness, or having outstanding debts that creditors can claim against MPF savings.
• Withdrawals are typically processed within a few weeks of application.

eMPF Platform:

• The administration of MPF schemes is now performed by the eMPF Platform. Employers and scheme members are required to manage their MPF accounts through the eMPF Platform and submit all MPF administrative instructions to the Platform for processing.
• All employers and scheme members must register with the eMPF Platform to obtain an eMPF ID and user credentials for logging on to the eMPF Platform and managing their MPF accounts electronically.
• We strongly recommend employers and scheme members to manage their MPF accounts through digital means. However, employers and scheme members, if preferred, can still submit their MPF related instructions to the eMPF Platform in paper form via post, fax, email, or drop-in box at any eMPF Service Centres.
• https://www.empf.org.hk/