New to the workforce? Your first lesson: MPF

New graduate Kenneth got his first payslip and noticed an MPF deduction he didn’t understand — how does MPF work? MPF is mandatory retirement savings — employees and the self-employed aged 18 to 65 must join, with employers and employees each contributing 5% of relevant income.

How are contributions calculated?

On a HK$20,000 monthly salary, the employee contributes HK$1,000 (5%) and the employer matches HK$1,000 — HK$2,000 into the MPF account each month. Above HK$30,000 a month, contributions cap at HK$1,500; below HK$7,100, employees need not contribute but employers still must.

Where does the money go?

Contributions are invested in the plan’s funds per your instructions — or the default fund if you choose nothing. Fund choices drive long-term returns, so they’re worth understanding.

When can you withdraw?

At what age can you take your MPF? 65. Benefits can be withdrawn at 65 on retirement, on permanent departure from Hong Kong, total incapacity, and other specified grounds.

What should newcomers watch?

First, check your employer contributes on time. Second, learn the risk levels of each fund type. Third, handle account transfers when changing jobs. The earlier you understand MPF, the safer your retirement.

Explore fund types at MPF fund comparison, and learn the basics at the MPF education hub.