Why Raise the MPF Minimum Relevant Income to $6,500?

What changes did the 2011 proposal make?

In June 2011, the government proposed raising the MPF monthly minimum relevant income from $5,000 to $6,500 (from 1 November 2011) and the maximum from $20,000 to $25,000 (from 1 June 2012). About 180,900 employees and self-employed persons would be freed from mandatory contributions, while 514,500 would have to contribute more. The government said the new floor balanced basic retirement needs against current living costs.

Why review the levels every four years?

The MPF Ordinance requires the MPFA to review the minimum and maximum relevant income levels at least every four years. The $5,000 floor had stood since 2002; the $20,000 ceiling since the system’s 2000 launch.

What is the contribution rate?

Mandatory contributions are 5% from the employer and 5% from the employee. Members can check their own amounts with a contribution calculator and browse funds at MPF fund comparison.