WhatsApp Us WhatsApp Us WhatsApp Us
Speak to an advisor: +852 5803 2409


How to Navigate the Mandatory Provident Fund (MPF) as an Employer

15 minute read

According to the MPF authority and official government documents, ‘The MPF System (The Mandatory Provident Fund System) is the second pillar of the multi-pillar retirement protection framework recommended by the World Bank’.

Simply put, this is a compulsory saving scheme (pension fund) for the retirement of Hong Kong residents. Most employees and their employers have to contribute to mandatory provident fund schemes on a monthly basis.

The amount allocated to this fund varies depending on the salary range and employment period. All employees and self-employed individuals aged 18 to 64 are required to contribute.

However, there are exemption cases under the MPFSO (the Mandatory Provident Fund Schemes Ordinance). If you’re interested in finding out more about MPF Hong Kong and how to handle all the processes as an employer, keep reading.


The Different MPF Schemes

Every employer has to select the appropriate MPF trustee(s) and scheme(s). In addition, displaying a participation certificate at office premises is necessary.

Below are listed all the types of MPF schemes.

Master Trust Scheme

This type of scheme is the most common one. It is open to relevant employees of participating employers and self-employed individuals.

The individuals opting for this scheme enjoy economies of scale from pooling the contributions of small employer units together for administration and investment.

Master Trust Scheme is particularly suitable for small and medium-sized businesses.

Industry Scheme

This scheme was specifically established for industries with high labor mobility such as catering and construction industries.

Workers in such industries are casual employees on a day-to-day basis or for a period shorter than 60 days, so this type of scheme makes it easier and more convenient for employers to calculate MPF contributions and handle MPF procedures.

Employer-sponsored Scheme

This option is limited to specific employees of a single employer and its associated companies. In practice, this scheme is only used by large corporations.

When Do I Need to Register?

Let’s first explain the 60-day rule. Employees who are employed for less than 60 days, excluding casual employees as defined under the MPFSO, are exempt from joining an MPF scheme.

However, it is mandatory to enroll both full-time and part-time employees, as well as those undergoing a probation period, within the first 60 days of employment (holidays and weekends included). Keep in mind that the 60-day employment rule does not apply to casual employees in the construction and catering industries.

Also, it is important to note that if the 60th day of employment is a Saturday, a public holiday, a gale warning day, or a black rainstorm warning day, the enrolment deadline is extended to the end on the next following day which is not a Saturday, a public holiday, a gale warning day, or a black rainstorm warning day.

Still, there are a few cases when exemptions apply:

  • Employees and self-employed persons who have attained 64 years of age on the date of the implementation of the relevant provision in the Mandatory Provident Fund Schemes Ordinance, i.e. 1 Dec 2000
  • Self-employed hawkers
  • Domestic employees
  • Members of occupational retirement schemes which are granted exemption certificates
  • People covered by a statutory pension or provident fund schemes, such as civil servants and subsidized or grant school teachers
  • People from overseas who enter Hong Kong for employment or self-employment for not more than 13 months
  • People from overseas who enter Hong Kong for employment or self-employment and who are covered by overseas retirement schemes
  • Employees of the European Union Office of the European Commission in Hong Kong

When Can I Withdraw My MPF?

Once you have reached the age of 65, you can withdraw the benefits you amassed during your career as a lump sum or in installments. However, you can also withdraw your benefits early. According to the law, there are specific circumstances when benefits can be withdrawn before you turn 65.

Early retirement

One has to be at least 60 years old and have ceased all employment and self-employment with no intention of becoming employed or self-employed again. You can withdraw your accrued benefits in a lump sum or installments.

Permanent departure from Hong Kong

You must declare that you have departed or will depart from Hong Kong to reside elsewhere with no intention of returning for employment or to resettle in Hong Kong as a permanent resident. You also need to provide proof that you are permitted to reside in a place outside Hong Kong.

Total incapacity

It is necessary to provide a medical certificate issued by a registered medical practitioner or registered Chinese medicine practitioner certifying that you have become permanently unfit to perform the particular kind of work you were doing.

Terminal illness

It is necessary to provide a medical certificate issued by a registered medical practitioner or registered Chinese medicine practitioner stating that in the practitioner’s opinion, you have an illness that is likely to reduce your life expectancy to 12 months or less.

Low balance

One must have a balance of not more than $5,000 in an MPF scheme and not have MPF benefits in any other MPF scheme. As for the date of your application, at least 12 months must have elapsed since your last contribution date. You must declare that you have no intention of becoming employed or self-employed.


According to the law, the accrued benefits of a deceased member are a part of the member’s estate and therefore must be claimed by the scheme member’s personal representative or the Official Administrator.

How Much Is MPF in Hong Kong?

Both employees and employers are required to make mandatory contributions of 5% each (a total MPF percentage of 10%) of the employee’s relevant income to an MPF scheme regularly. Both groups are subject to the minimum and maximum relevant income levels. If an employee receives paychecks monthly, the minimum and maximum relevant income levels are $7,100 and $30,000 respectively.

The current minimum relevant income level of $7,100 per month applies to contribution periods starting on or after 1 November 2013, while the current maximum relevant income level of $30,000 per month applies to contribution periods starting on or after 1 June 2014.

Also, relevant income refers to all monetary payments paid or payable by an employer to an employee, including:

  • Wages
  • Salary
  • Leave pay
  • Fees
  • Commissions
  • Bonuses
  • Gratuities
  • Perquisites
  • Allowances

However, this rule excludes severance payments or long-service payments under the Employment Ordinance.

As an employer, it is required to calculate your employee’s relevant income and the number of mandatory contributions for each contribution period (wage period), deduct the amount from the employee’s income as their mandatory contributions, and remit the employee’s contributions to the MPF trustee, together with the employer’s contributions from your funds.

Finally, the mandatory contributions for a contribution period should be remitted to your MPF trustee on or before the contribution day. In general, for monthly-paid employees, the contribution day is the 10th day of each month. For example, the contributions for the contribution period of September should be paid to your trustee on or before 10 October.

Common MPF Service Providers

You should take a few factors into consideration before you choose the right MPF provider for your company.

According to the Hong Kong Monetary Authority (HKMA), there are 14 approved trustees in the market providing this service from either local banks or insurance companies.

It is recommended that you consider the following before you make a decision:

  • Stability of the company
  • Different fund choice
  • Charges applied
  • Service level


HSBC Holdings is a British bank and financial services holding company established back in 1865. HSBC branches were first opened in Hong Kong and in Shanghai. The HSBC name is derived from the initials of the Hong Kong and Shanghai Banking Corporation.

They offer two schemes. The first one is the HSBC Mandatory Provident Fund – SuperTrust Plus. The second one is the HSBC Mandatory Provident Fund – ValueChoice. Both of these are Master Trust Schemes.


Manulife Hong Kong has been a popular name for over 120 years. This institution has become one of the city’s top providers of financial services, offering a diverse range of protection and wealth products and services to 2.2 million customers in HK and Macau.

The Manulife Global Select (MPF) Scheme provides a total of 29 constituent funds covering diversified fund choices of equity funds (international, regional, single-market and sector), bond funds (international, regional and single-market), mixed assets funds (lifestyle and target date), guaranteed funds, and money market fund.

Sun Life

Sun Life Financial, Inc. is a Canadian financial services company mainly known as a life insurance company. It is one of the largest companies of the kind in the world.

This company offers a total of four schemes:

  1. Basic Scheme
  2. Comprehensive Scheme
  3. Master Trust Scheme
  4. Rainbow Scheme

Wrap Up

Contributing to an MPF scheme means contributing to your employee’s future. And that is something all good employers want to do. After all, every hard-working individual deserves a nice pension fund following the end of their career.

If you want to find out more and get additional help, feel free to consult Sleek. No finance-related questions are too difficult for Sleek to answer.

Ready to start your business?

Our expert team is here to help you. Explore our incorporation services or contact our team to get personalised advice today.

Other articles that might interest you

Related content

Contact us

We’d love to help. Share your contact details and we’ll call you back

Contact us

We’d love to help. Share your contact details and we’ll call you back

Start a business in less than 3 hours with us. Talk to our experts today.

Terms and Conditions of the Promotion:

Before participating in this promotion, you must carefully read and agree to abide by the following terms and conditions.

  1. Eligible Users: To enjoy this offer, customers must purchase an Incorporation package with an accounting service at the same time. Valid customers will receive a discount of HKD 888.
  2. Promotion Period: This promotion is valid from Jan 18 – March 31, 2024. Sleek reserves the right to end this promotion at any time without prior notice to customers.
  3. Fees and Payment: Customers must pay the service fees according to Sleek’s standard payment terms. The HKD $888 waiver will be applied as a discount on the customer’s invoice.
  4. Governing Law and Jurisdiction: These terms and conditions shall be governed and construed in accordance with the laws of Hong Kong. Any dispute arising out of or in connection with these terms and conditions shall be subject to the exclusive jurisdiction of the courts of Hong Kong.
  5. Confidentiality: Sleek shall treat all information provided by the customer as confidential and shall not disclose such information to any third party, except as required by law or with the customer’s consent.
  6. Limitation of Liability: To the extent permitted by law, Sleek shall not be liable for any direct, indirect, or consequential loss or damage arising out of this promotion.
  7. Disclaimer: To the extent permitted by law, Sleek shall not be responsible for any loss or damage arising from the customer’s use of this promotion. Sleek does not guarantee the accuracy, completeness, reliability, timeliness, suitability, or availability of the website and its content. Sleek reserves the right to change the website and its content at any time without prior notice to customers.
  8. Cancellation of Orders: If customers wish to cancel an order, they must contact Sleek’s customer service department within 24 hours of submitting the order. Orders cannot be cancelled if they have already been processed
  9. Links to Third-Party Websites: Sleek’s website may contain links to third-party websites that are not under Sleek’s control. Sleek is not responsible for the content, privacy policies, or practices of third-party websites and does not endorse or recommend them. Customers should carefully read the terms and conditions and privacy policies of any third-party website before using it.
  10. Accuracy of Registration Information: Customers warrant that all registration information provided is accurate, complete, and up-to-date. If a customer’s registration information changes, the customer should update their account information promptly. Sleek shall not be liable for any loss or damage arising from the customer’s provision of inaccurate or incomplete registration information.
whatsapp icon

Chat with us on WhatsApp from your mobile

30 Days Money Back Guarantee

Our refund policy:

We care about you – within 30 days from your purchase, if you’re unhappy with our services, we’ll refund our fee. Email or call us, and we’ll process the refund within five working days.

What it doesn’t cover:

We will not be able to refund Government fees once the application has been submitted, nor any third-party processing fees.

When it applies:

We cannot guarantee any specific legal outcomes when you use our services. For instance, a company registration might be filed correctly but still get rejected by the Company Registry for reasons beyond our control. We can only refund our fees for issues we are directly responsible for. In the case that you purchase a service and later change your mind, we can’t issue a refund.

Our customer support team is at your disposal for any questions or issue you may face.

Need help?

Our sales team is available from Mon - Fri 9am to 7pm (Hong Kong Time)

Let's get in touch

Book a time with our experts to guide you in finding the best solution.