Employers must contribute 5% of an employee's relevant income per month subject to the maximum relevant income level. Employees are required to match this portion unless their relevant income is below the minimum relevant income level.

Self-employed persons also have to contribute 5% of their relevant income subject to the maximum relevant income level. They can opt to make contributions on a monthly basis or a yearly basis. If their relevant income is below minimum relevant income level on a monthly or a yearly basis, they are not required to contribute but still need to be enrolled into an MPF scheme.

For the minimum and maximum relevant income levels, please visit MPFA website at www.mpfa.org.hk.

Voluntary contributions

Employees can make additional voluntary contributions via payroll deduction by their employers, or choose to make Flexi-Contributions (non-employment related voluntary contribution) or tax deductible voluntary contributions (non-employment related tax deductible voluntary contribution) on their own without going through their employers.

Self-employed persons have some key responsibilities under the MPF legislation. The responsibilities are to notify the trustee regarding:

• the relevant income
• the chosen payment frequency and make contribution payments
• any change to the circumstances or contact details

All mandatory contributions for members are fully and immediately vested as accrued benefits once they are allocated to the members' MPF accounts. Investment income or profit derived from the investment of accrued benefits within the MPF funds is also vested to the relevant members.

MPF legislation allows employers to offset long- service payment or severance payment paid to your employees with the relevant accrued MPF benefits derived from employer contributions. Please note that the abolition of MPF offsetting arrangement has been implemented on 1 May 2025 (the transition date). Starting from the transition date, employers can no longer use the accrued benefits of their mandatory contributions under the Mandatory Provident Fund (MPF) System to offset employees' LSP/SP attributable to employees' period of employment on or after the transition date, but can continue to offset employees' LSP/SP attributable to employees' period of employment before the transition date. Accrued benefits derived from employers' voluntary MPF contributions as well as gratuities based on length of service can continue to be used to offset LSP/SP. You may visit the Labour Department's website for information about the abolition of MPF offsetting arrangement.

MPF mandatory and additional voluntary contributions made by employers are profits tax deductible. Employees and self-employed person’s mandatory contributions and voluntary contributions contributed into tax deductible voluntary contributions accounts are also tax deductible but their additional voluntary contributions not contributed
into tax deductible voluntary contributions accounts or Flexi-Contributions are not tax deductible. For further details on tax issues, please refer to the latest announcements by the Inland Revenue Department of the Government of the Hong Kong SAR.

Accrued benefits in contribution account
Employees may transfer their accrued benefits attributable to their own mandatory contributions made under their current employment (the employee's mandatory contributions but not the employer's) to a personal account with Hang Seng Mandatory Provident Fund – SuperTrust Plus or any other MPF scheme of their choice once a calendar year (ie 1 January to 31 December).

Accrued benefits derived from former employment
Employees may transfer their accrued benefits derived from mandatory contributions from former employment(s) in their contribution accounts to a personal account or contribution account with Hang Seng Mandatory Provident Fund – SuperTrust Plus or to any other MPF scheme of their choice at any time.

A personal account holder can always transfer all his/her accrued benefits derived from mandatory contributions and voluntary contributions (if any) from the existing personal account to a Hang Seng Mandatory Provident Fund – SuperTrust Plus Personal Account or any other MPF scheme of his/her choice at any time.

When employee ceased employment
When employees change jobs, they can then transfer all their accrued benefits to a personal account with Hang Seng Mandatory Provident Fund – SuperTrust Plus, or transfer their accrued benefits to their new employer's MPF scheme or another MPF scheme of their choice.

Members can withdraw their accrued benefits in a lump sum or in instalments on the grounds of retirement at the age of 65 or early retirement at the age of 60.

There are also certain circumstances under which accrued benefits may be paid before reaching the age of 65:

• the Member’s death (in which case the accrued benefits are paid to the Member’s legal personal
  representatives);
• the total incapacity of the Member;
• the terminal illness of the Member;
• the early retirement of the Member on or after reaching age 60;
• the Member’s permanent departure from Hong Kong; or
• the Member’s claim on small balance under section 162(1)(c) of the Mandatory Provident Fund Schemes
  (General) Regulation
(in the event that an account balance is HK$5,000 or less, and provided that as at the date of the claim application, at least 12 months have elapsed since the contribution day in respect of the latest contribution period for which a mandatory contribution is required to be made to any registered scheme, and the member does not have any accrued benefits kept in any other registered scheme, and does not intend to become employed or self-employed.)