Do Company Directors Have to Join MPF? Executive vs Non-Executive Makes All the Difference

An HR manager asks: a new director has joined the company — must we enrol them in MPF? The answer: executive directors yes, non-executive directors no — it hinges on whether they take part in day-to-day operations.

How do you tell an executive director from a non-executive one?

Hands-on in daily operations and management = executive director, treated as a substantive employee. Under the MPFS Ordinance, employees aged 18–65 employed continuously for 60 days — full-time or part-time — plus the self-employed must join MPF, and directors are no exception. If a director participates in daily operations, the company must enrol them after 60 days of employment; a purely titular non-executive director need not join.

How are an executive director’s contributions calculated?

Same as ordinary employees: 5% of relevant income, plus 5% from the employer — 10% total. For monthly-paid directors, the company must contribute to the trustee within 10 days after the payroll period. A director paid a fee once a year uses the annual income caps (HK$240,000 and HK$60,000) and contributes once a year; with no salary or bonus at all, neither side contributes.

The 5%+5% split is the basic MPF contribution rate. Compare fund charges at MPF fund comparison.