MPF stands for Mandatory Provident Fund — Hong Kong’s mandatory retirement savings scheme for all working adults.
Enacted in 1995 and fully implemented since 2000, MPF now covers more than 3 million workers in Hong Kong.
📌 The three pillars of MPF:
1. Mandatory participation: All eligible employees and self-employed persons must join an MPF scheme.
2. Employer contributions: Employers must contribute 5% of an employee’s income each month, capped at HK$1,500.
3. Investment returns: Contributions go into your personal account, invested through your chosen MPF fund — returns accumulate until retirement.
In short, MPF is money set aside jointly by you and your employer every month for your retirement.
💡 Key concepts every worker should know:
• DIS (Default Investment Strategy): If you don’t actively choose a fund, your money automatically goes into DIS — low fees, automatically rebalanced, ideal for hands-off savers.
• Tax-deductible voluntary contributions (TVC): You can contribute extra on top of mandatory contributions and enjoy tax deductions of up to HK$60,000 per year.
• Portability: MPF belongs to you, not your employer. When you change jobs, your account stays — you can consolidate it or keep it.
With one of the world’s longest life expectancies, Hong Kong residents need to plan retirement carefully. MPF is the cornerstone of that plan. Learn how it works, and make it work for you.
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