This article is a rewrite of a report from August 2012.
A new employer offers both an MPF scheme and a provident fund scheme — pick one. MPF vs ORSO (occupational retirement schemes / provident funds) differ on contributions, investment choice and withdrawals — and there’s no changing your mind after.
How do contributions differ?
| Item | MPF | Provident fund (ORSO) |
|---|---|---|
| Employer contributions | Mandatory: 5% of relevant income | Employer decides; employer-only or joint funding |
| Employee contributions | 5% if earnings exceed HK$6,500 | Employer decides |
| Vesting | Employer’s mandatory share vests fully with the employee | Vesting scale applies (e.g. 0% under 3 years, 30% at 3 years, 40% at 4 years) |
| Withdrawal | Generally only at 65 | Per scheme rules |
How does investment choice differ?
MPF: the employer picks the scheme; the employee picks the fund mix inside it. Provident fund: the employer typically decides both scheme and fund mix — employees get less say.
When must you decide? What if you choose wrong?
Within 30 days of starting, choose one in writing to your employer — silence counts as choosing MPF, and the choice is final. So study and compare both schemes’ terms in detail before deciding.
MPFA: www.mpfa.org.hk
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