MPF Explained: Hong Kong's Mandatory Provident Fund and What It Actually Costs You

Yes, in almost all cases. Most foreign employees working in Hong Kong under a standard employment visa are required to join an MPF scheme just like local employees, and the same 5% rate, floor, and ceiling apply. The main exemption is for overseas employees who enter Hong Kong under an employment visa for no more than 13 months, or who remain a member of a retirement scheme outside Hong Kong. If your visa is later extended past 13 months, your employer must enrol you in MPF within 60 days of the extension taking effect. Domestic helpers and a small number of other categories are separately exempt.

HK$7,100 a month. Below that minimum relevant income level, you owe no employee MPF contribution at all, though your employer must still contribute their 5% share on your behalf if you're enrolled. Once your monthly income passes HK$7,100, the employee contribution applies to your full income, not just the amount above the threshold.

Yes. Once monthly relevant income passes HK$30,000, the mandatory employee contribution stops rising and caps at HK$1,500 a month (HK$18,000 a year), no matter how much more you earn. That's why MPF becomes a shrinking share of pay for higher earners: at HK$30,000/month it's exactly 5%, but by HK$60,000/month it's already down to 2.5%, and it keeps falling as salary climbs further.

No, and the difference matters if you're comparing offers. Singapore's Central Provident Fund (CPF) only applies to Singapore citizens and permanent residents, so most foreign employees on an Employment Pass or S Pass contribute nothing. Hong Kong's MPF applies to most employees regardless of nationality, foreign professionals included, subject only to the 13-month overseas-visa exemption. A foreign hire moving to Hong Kong should expect a real MPF deduction from day one (once past the 13-month exemption window) in a way they wouldn't in Singapore.

Retirement. MPF is Hong Kong's compulsory, privately-managed retirement savings scheme, regulated by the Mandatory Provident Fund Schemes Authority (MPFA). Your 5% employee contribution is matched by a 5% employer contribution (also capped at HK$1,500/month), and the combined 10% is invested through an MPFA-approved trustee in funds you have some choice over, ranging from conservative capital-guaranteed funds to equity funds. The balance is generally locked until age 65, with limited early-withdrawal grounds such as permanent departure from Hong Kong or terminal illness.

Partially. Your employer selects the MPF scheme and trustee for their mandatory contributions, but under the Employee Choice Arrangement you can transfer the accrued benefits from your own contributions to a different MPFA-approved trustee and fund once a year, without needing your employer's agreement. This gives some control over fees and investment mix, even though you can't opt out of MPF itself or choose your employer's default scheme.

Yes, indirectly. Mandatory MPF contributions are deducted from your income before Salaries Tax is calculated, up to the same HK$18,000/year cap as the contribution itself. That's part of why MPF and Salaries Tax should be looked at together rather than as two unrelated deductions, see our guide to how the progressive and standard rate methods work for the full mechanics.