MPF cap may rise to HK$25,000: 400,000 workers get a stealth HK$250 raise

With the minimum wage in place, the government is preparing to adjust MPF’s lower and upper relevant-income levels. Understood to be under consideration: lifting the floor from HK$5,000 to HK$6,500 and the ceiling from HK$20,000 to HK$25,000 — a stealth raise of up to HK$250 a month for nearly 400,000 employees earning over HK$20,000. The MPF contribution rate itself is unchanged at 5% of relevant income from each side.

Why only HK$25,000 for the ceiling?

The MPFA originally proposed HK$30,000. Under the statutory formula (floor at half the median employment income, ceiling at the 90th percentile), the MPFA recommended HK$5,500 and HK$30,000. But views diverged: at a LegCo hearing, some argued those earning over HK$20,000 could invest elsewhere rather than relying on MPF; others warned a big ceiling jump would strain employers. Weighing lawmakers, public opinion and the minimum wage’s impact, the government leans toward HK$6,500/HK$25,000, subject to review — though no final decision has been made.

Who is hit hardest?

400,000 higher earners — and their employers. A HK$25,000 ceiling means employers pay up to HK$250 more per month per affected worker — effectively a raise. On the floor, hearing participants blasted HK$5,500 as tantamount to “everyone contributes”, since the minimum wage already implies monthly pay of about HK$5,800; most voices wanted HK$6,000–6,500.

To see what different incomes must contribute, visit MPF fund comparison.