Hong Kong MPF Calculator: Mandatory Provident Fund Contribution
Work out the Hong Kong MPF (Mandatory Provident Fund) contribution — the 5% of relevant income that both employee and employer must pay into a retirement scheme — and your income after the employee share.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Employee MPF contribution | Income after MPF |
|---|---|---|
| 5% of $30,000 ($1,500) | 1,500 | 28,500 |
| 5% of $20,000 | 1,000 | 19,000 |
| 5% of $50,000 | 2,500 | 47,500 |
| 5% of $10,000 | 500 | 9,500 |
How This Calculator Works
Enter the MPF rate (5%) and your relevant monthly income. The calculator returns the employee's mandatory contribution and your income after it. Under the MPF system, the employee contributes 5% and the employer contributes a matching 5%, both into the employee's MPF account — subject to minimum and maximum relevant-income levels that this calculator doesn't apply.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
At 5% on $30,000 of relevant monthly income, the employee MPF contribution is $1,500, leaving $28,500 — with the employer adding another $1,500 on top. The MPF is Hong Kong's compulsory, privately-managed retirement-savings system: most employees and their employers each contribute 5% of the employee's relevant income into an MPF scheme. Contributions are subject to a minimum relevant-income level (below which the employee pays nothing, though the employer still does) and a maximum level that caps the mandatory amount.
Key Insight
The MPF is the backbone of Hong Kong's retirement system, and a few rules define the real contribution. Both sides pay 5%: the employee contributes 5% of relevant income and the employer matches with another 5%, so 10% in total goes into the employee's MPF account each period. Two thresholds this calculator omits matter at the edges: there's a minimum relevant-income level below which the employee makes no mandatory contribution (but the employer must still pay its 5%), and a maximum relevant-income level that caps the mandatory contribution — income above the cap doesn't attract further mandatory MPF, so high earners pay a fixed maximum rather than 5% of everything. 'Relevant income' includes wages, salary, leave pay, fees, commissions, bonuses and allowances. The self-employed must also contribute 5% (between the same income limits). Contributions are invested in funds you choose within your scheme, the accrued benefits are generally preserved until age 65 (with limited early-withdrawal grounds such as permanent departure from Hong Kong, total incapacity, or terminal illness), and you can consolidate accounts and move your own portion between schemes under the Employee Choice Arrangement. Tax angle: mandatory employee contributions are deductible for salaries tax up to an annual cap, and tax-deductible voluntary contributions (TVC) offer additional deductible retirement saving. Fees matter a lot over decades — MPF fund fees have been a long-standing criticism, so low-fee funds are favoured. This calculator shows the 5% employee mandatory contribution on the income you enter and the income left after it; for an exact figure apply the minimum and maximum relevant-income levels, and remember the employer's matching 5% goes in on top.
The 5%/5% mandatory contribution and the HKD 30,000 ceiling
MPF contribution rates: 5% from employee + 5% from employer = 10% total of relevant income, mandatory for most Hong Kong employees aged 18-65. Both contributions are capped at HKD 1,500/month (i.e., 5% of HKD 30,000 monthly income). Earnings above HKD 30,000/month don't attract mandatory MPF.
Concrete example: an employee earning HKD 50,000/month. Mandatory contribution: 5% × HKD 30,000 (capped) = HKD 1,500 from employee + HKD 1,500 from employer = HKD 3,000/month into MPF. The remaining HKD 20,000 of monthly income is MPF-free. For higher earners, this means MPF is a relatively small portion of total compensation (3,000/50,000 = 6%).
The HKD 30,000 cap has been steady since 2014. With Hong Kong inflation and rising wages, this means more high earners hit the cap each year — making MPF a smaller proportion of their retirement saving than originally designed. Many use the MPF Voluntary Contribution scheme or Tax Deductible Voluntary Contributions (TVC) to top up beyond the mandatory 5%.
TVC: tax-deductible top-ups for retirement-focused savers
TVC (Tax Deductible Voluntary Contributions) — introduced in 2019 — allows employees and self-employed to contribute extra to a designated MPF account and claim a tax deduction. Annual limit: HKD 60,000 combined with QDAP (qualifying annuity payments). At the top marginal rate of 17%, that's potentially HKD 10,200 in annual tax savings.
Concrete example: a middle-class professional earning HKD 1,200,000 (top marginal rate 17%) contributes HKD 60,000/year to TVC. Tax saving: HKD 60,000 × 17% = HKD 10,200. After tax savings, the effective cost of the HKD 60,000 contribution is HKD 49,800 — a 20.5% boost on the contribution amount before any investment returns.
TVC funds are subject to standard MPF withdrawal restrictions: locked until age 65 (or 60 with hardship grounds, terminal illness, permanent departure from Hong Kong, etc.). For Hong Kong workers planning to leave Hong Kong eventually, TVC can be problematic — though departing residents can withdraw their MPF (mandatory + TVC + voluntary) as a single lump sum upon permanent departure.
Permanent departure from Hong Kong: full MPF withdrawal
MPF members who permanently leave Hong Kong can withdraw their entire MPF balance — mandatory contributions, employer contributions, voluntary contributions, and accumulated investment returns. The withdrawal is tax-free in Hong Kong (Hong Kong has no income tax on lump-sum withdrawals from pension schemes). Whether it's taxable in the destination country depends on local rules.
Documentation required: proof of permanent departure (visa, employment letter, statutory declaration). Application process: file Form MPF-FR65 with the MPF Trust Company. Processing typically takes 2-3 months. After approval, the MPF balance is transferred to your designated bank account.
Tax planning for emigrants: timing the withdrawal matters. For UK-bound emigrants, withdrawing before becoming UK tax-resident avoids UK tax on the withdrawal. For US-bound emigrants, the timing question is complex due to US worldwide income taxation. For Canadian-bound emigrants, similar timing considerations. Pre-departure tax planning with a cross-border specialist is essential for high-MPF-balance individuals.
MPF contribution by salary and the cap effect
Monthly MPF contributions for mandatory rates only (5% employee + 5% employer), capped at HKD 1,500/month each. Add TVC for additional tax-deductible contributions.
| Monthly salary (HKD) | Employee 5% | Employer 5% | Total monthly MPF | % of salary |
|---|---|---|---|---|
| HKD 10,000 | HKD 500 | HKD 500 | HKD 1,000 | 10.0% |
| HKD 20,000 | HKD 1,000 | HKD 1,000 | HKD 2,000 | 10.0% |
| HKD 30,000 | HKD 1,500 | HKD 1,500 | HKD 3,000 | 10.0% |
| HKD 50,000 | HKD 1,500 (capped) | HKD 1,500 (capped) | HKD 3,000 | 6.0% |
| HKD 100,000 | HKD 1,500 (capped) | HKD 1,500 (capped) | HKD 3,000 | 3.0% |
Above HKD 30,000/month, additional MPF requires Voluntary Contributions or TVC. TVC up to HKD 60,000/year is tax-deductible at marginal rate (currently up to 17%).
Frequently Asked Questions
How is the MPF contribution calculated?
The employee contributes 5% of relevant income. On $30,000 monthly income, that's $1,500, leaving $28,500. The employer adds a matching 5% ($1,500) on top, so $3,000 total goes into the MPF account — subject to minimum and maximum relevant-income levels.
What is the MPF?
The Mandatory Provident Fund — Hong Kong's compulsory, privately-managed retirement-savings system. Most employees and their employers each contribute 5% of relevant income into an MPF scheme, invested in funds you choose. Benefits are generally preserved until age 65.
Is there a cap on MPF contributions?
Yes. There's a maximum relevant-income level that caps the mandatory contribution, so income above it doesn't attract more mandatory MPF — high earners pay a fixed maximum. There's also a minimum level below which the employee pays nothing (though the employer still contributes its 5%).
Do the self-employed pay MPF?
Yes — self-employed persons must contribute 5% of their relevant income, between the same minimum and maximum income levels that apply to employees. There's no employer match for the self-employed, so they contribute the single 5% mandatory amount themselves.
Are MPF contributions tax-deductible?
Mandatory employee contributions are deductible for salaries tax up to an annual cap. Tax-deductible voluntary contributions (TVC) allow additional deductible retirement saving within a combined cap. The employer's contributions go into your account separately and aren't part of your taxable income.
References & Authoritative Sources
- MPFA — Mandatory Provident Fund Schemes Authority — MPF — official scheme rules and member portal · consulted May 31, 2026 · Statutory regulator — contribution rates, scheme types, fund supervision
- Inland Revenue Department — Tax Deductible Voluntary Contributions (TVC) — tax guide · consulted May 31, 2026 · Hong Kong tax authority — TVC deduction rules, combined HKD 60,000 cap with QDAP
- Mandatory Provident Fund Schemes Ordinance (Cap. 485) — Statutory basis for MPF system · consulted May 31, 2026 · Primary statute — contribution obligations, scheme types, withdrawal rules
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Methodology & Review
The employee mandatory contribution is 5% of relevant monthly income; the remainder is income after that contribution. It models the 5% employee share and does not apply the minimum and maximum relevant-income levels (below which no contribution is due and above which it's capped), nor the matching 5% employer contribution.
Reviewed according to the CalcDomain Editorial Policy & Calculator Methodology. We document formulas, edge cases, sources, update dates, and correction paths for calculator pages.
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