MPF contribution rates and caps: what you pay at different incomes

This article is a rewrite of a report from August 2012.

MPF contributions are not one-size-fits-all — different incomes and industries mean different arrangements. The full picture after the 2012 rule changes.

What is the MPF contribution rate?

Employers and employees each pay 5% of relevant income. A worker earning HK$20,000 a month sees HK$1,000 from each side, HK$2,000 total flowing into the MPF account.

What are the maximum and minimum income levels?

Maximum HK$25,000 a month (contribution cap HK$1,250), minimum HK$6,500. Below HK$6,500 income the employee is exempt but the employer still pays 5%. “Relevant income” covers salaries, wages, housing and leave allowances, commissions, bonuses, contract gratuities, pensions and annuities; severance and long service payments excluded.

Who gets special treatment?

In the first 30 days of employment plus the first incomplete contribution period, the employee pays nothing while the employer still contributes. Construction and catering casual workers must join even under 60 days, reported by employers on a daily-wage basis. Contributions are due no later than the 10th day after each contribution period; late payers face a 5% annual surcharge on top of arrears.