The 2026 MPF mandatory contribution cap stays at $1,500 per month (each for employer and employee), based on maximum relevant income of $30,000/month. But the MPFA has proposed raising it to $2,000 — employees earning over $30,000 should pay attention.
| Item | Amount |
|---|---|
| Minimum relevant income | $7,100/month (below this, employees need not contribute) |
| Maximum relevant income | $30,000/month |
| Employer cap | $1,500/month (5% of relevant income) |
| Employee cap | $1,500/month (5% of relevant income) |
| Self-employed cap | $18,000/year |
The maths: earn $30,000+ and both sides pay $1,500; earn $20,000 and each pays $1,000 (5%); earn under $7,100 and you pay nothing — but your employer still pays 5%.
In March 2026, the Labour Advisory Board discussed the MPFA's proposal:
Someone earning $40,000/month would pay $500 more each month. But officials say implementation will take years — nothing changes in 2026. We will keep tracking this.
Employee mandatory contributions are tax-deductible up to $18,000/year; voluntary contributions (including TVC) have a separate $60,000/year deduction cap. More contributions, more deductions — but TVC money is locked until 65.
Does the cap cover voluntary contributions? No. The cap applies to mandatory contributions only; voluntary amounts are up to you and your employer.
Do bonuses count as relevant income? Yes. Commissions, bonuses and allowances all count — 5% is calculated on total relevant income per pay period (capped at $30,000).