Hong Kong’s Mandatory Provident Fund (MPF) is a statutory retirement savings system. For a covered regular employee aged 18–64 in a normal full monthly contribution period, the employer contributes 5% of relevant income, capped at HK$1,500. The employee also contributes 5%, up to HK$1,500, unless income is below HK$7,100 or a contribution holiday applies. Check coverage and exemptions before calculating deductions.
Use this guide to check enrolment, contribution deadlines and payroll treatment. Employers remain responsible for accurate submissions and timely payment, including when calculations are outsourced.
How Much You Contribute
For monthly paid regular employees, the MPFA specifies relevant-income thresholds of HK$7,100 and HK$30,000. The following examples assume a full contribution period and no employee contribution holiday.
| Monthly relevant income | You contribute | Employee contributes | Worked example |
|---|---|---|---|
| Under HK$7,100 | 5% of income | Nothing | At HK$6,000: you pay HK$300, employee pays HK$0 |
| HK$7,100 to HK$30,000 | 5% of income | 5% of income | At HK$25,000: HK$1,250 each |
| Over HK$30,000 | HK$1,500 (capped) | HK$1,500 (capped) | At HK$45,000 or HK$200,000: still HK$1,500 each |
Below HK$7,100, the employee pays no mandatory contribution, but the employer still contributes 5%. Do not apply a matching employee deduction automatically.
These caps apply to mandatory contributions. Track any voluntary retirement benefits separately. NNRoad’s Hong Kong labour cost calculator estimates salary, employer MPF and an insurance allowance; it does not calculate every employment cost.
Weekly and Daily Paid Employees
For regular employees paid daily, weekly or twice a month, calculate the income thresholds using HK$280 per day and HK$1,000 per day, multiplied by the number of days in the wage period.
For a weekly paid employee that means a floor of HK$1,960 (HK$280 × 7) and a ceiling of HK$7,000 (HK$1,000 × 7). Below the floor, the employee contributes nothing and you still pay 5%. Above the ceiling, both sides contribute 5% of the ceiling rather than of actual income.
Do not apply this calculation to casual employees enrolled in an Industry Scheme: designated daily contribution scales apply. Under MPF rules, casual employees are those employed in construction or catering on a daily basis or for a fixed period of less than 60 days.
Who Must Be Enrolled
Regular employees aged 18–64 who remain employed for at least 60 calendar days must generally be enrolled within their first 60 days, unless exempt. Part-time status does not remove this obligation: the period measures the employment relationship, not days actually worked. See the MPFA enrolment rules.
| Worker type | Treatment | What to do |
|---|---|---|
| Full-time, 18–64 | Covered | Enrol within the first 60 days of employment |
| Part-time, 18–64 | Usually covered | Part-time status alone is not an exemption |
| Casual, construction or catering | Special rules | Generally enrol within the first 10 days. No employee contribution holiday; use the scheme-specific calculation and payment rules. |
| Foreign employee | May be exempt | Certain employees entering Hong Kong for employment are exempt through membership of an overseas retirement scheme or permission to stay for no more than 13 months. Retain evidence and review extensions. |
| Domestic helper | Outside MPF | Other employment obligations may still apply |
The exemption depends on the individual’s circumstances, not nationality alone. Where the permitted stay is extended beyond 13 months and no overseas retirement scheme exemption applies, coverage begins after the 13th month; enrolment is due within 60 days from its end. See MPFA employer guidance. Expat Employment in Hong Kong also requires a separate work-authorisation assessment.
When Your First Contribution Is Due
For covered regular employees, distinguish when contributions accrue from when they must be remitted.
Employer contributions accrue from the first day of employment. The regular employee’s contribution holiday covers the first 30 days and the immediately following incomplete wage period. Casual employees do not receive this holiday.
Calculate employer contributions from the start date. Begin employee deductions only when the holiday ends and the relevant-income threshold is met.
Worked example. A covered regular employee starts on 5 June, with a calendar-month wage period.
The first 30 days end on 4 July. The employee’s holiday also covers 5–31 July, so no employee contribution is deducted for June or July.
Employee contributions begin for August, subject to the income threshold. Employer contributions accrue from 5 June.
For a new monthly paid regular employee, the first remittance is due by the contribution day following the month containing the 60th day of employment, generally the 10th of the next month, subject to permitted extensions.
In the example, the 60th day is 3 August. The first payment is therefore generally due by 10 September and includes the employer contributions accrued since 5 June and the applicable August employee contribution.
What Counts as Relevant Income
Relevant income includes wages, salary, leave pay, commissions, bonuses, gratuities and allowances paid or payable in money for the employment. Statutory severance and long service payments are excluded.
The payment’s purpose matters. Cash allowances generally count; non-cash benefits and genuine reimbursements of necessary work expenses generally do not. See the MPFA relevant-income guidelines.
| Payment | Counts? | Why |
|---|---|---|
| 13th month pay / double pay | Yes | Contractual monetary pay |
| Bonus, discretionary or performance-linked | Yes | Both types count |
| End-of-contract gratuity | Yes | Despite arriving at the end of employment |
| Cash allowance | Yes | Cash the employee may spend freely |
| Paid leave (annual, sick, marriage, compassionate) | Yes | Leave pay is income |
| Tips collected by the employer and distributed | Yes | Includes service charges and card tips |
| Tips left directly for staff | No | No employer involvement |
| Cash car allowance (fuel, maintenance, licence fees) | Yes | Cash payment for the employee’s benefit |
| Free use of a company car, transport passes, parking coupons | No | Non-monetary benefit |
| Reimbursed work expenses (training, uniform laundry, phone, professional fees) | No | Keep documentation showing the reimbursement nature |
| Payment in lieu of notice | No | Falls outside the definition of relevant income |
| Severance and long service payment | No | Specifically excluded by statute |
| Share options, and gains realised on them | No | Non-monetary |
Classify each pay code before the first payroll. Allocate income to the correct contribution period under the paid-or-payable rules; a delayed bank transfer does not automatically move wages into the next month. Check when bonuses and commissions become ascertainable and due, including payments after employment ends.
Deadlines and the eMPF Platform
Submit contributions and the corresponding remittance statement through the eMPF Platform. Reconcile employee details, relevant income and contribution amounts before submission.
| Obligation | Deadline | Note |
|---|---|---|
| Enrol a regular employee | Within 60 days of employment | Separate from the first payment deadline |
| Monthly contribution | 10th of the following month | September MPF contributions are generally due by 10 October; this is not the wage-payment deadline |
| First contribution: monthly paid regular employee | Contribution day after the month containing the 60th day | Separate from enrolment within 60 days |
| Monthly pay-record to each employee | Within 7 working days of remitting | Show relevant income, employer and employee mandatory and voluntary contributions, and payment date |
| Casual employees | Scheme-specific contribution day | Master Trust: generally 10 days after the period, with a first-payment rule. Industry Scheme: agreed next working day after payday or 10 days after the period. |
A contribution day falling on a Saturday, public holiday, gale or black rainstorm warning day is extended to the next qualifying day. A qualifying eMPF suspension can also extend the deadline. Check the MPFA contribution calendar and platform notices.
Keep employees with no relevant income on the remittance statement and report HK$0. For casual staff, check the specific enrolment and first-payment rules; do not apply the regular employee timetable.
The 2025 Offsetting Abolition
Since 1 May 2025, benefits derived from mandatory employer MPF contributions cannot offset the portion of severance or long service payment attributable to service from that date. See the Labour Department’s explanation.
For employment spanning the transition date, calculate the pre-transition and post-transition portions separately. Eligibility for severance or long service payment must still be established.
What this changes for employers:
Retain service dates, the relevant wage records and contribution history. Estimate any termination payment separately from the monthly MPF contribution; the contribution cap is not a cap on termination liability.
Different offsetting rules remain for employer voluntary contributions and qualifying gratuities based on years of service. Check these separately rather than assuming every offset is prohibited.
Common Mistakes
Deducting from regular employees too early. Apply the contribution holiday and income threshold before taking an employee contribution.
Excluding part-time employees. Check age, employment duration and exemptions, not simply the work schedule.
Applying regular-employee rules to casual staff. Check the 10-day enrolment period, scheme type, contribution scales and first-payment deadline.
Treating every allowance the same. Cash allowances count; genuine expense reimbursements don’t. Free use of a car doesn’t; cash for running one does.
Assuming nationality creates an exemption. Document any overseas retirement scheme membership or qualifying permitted stay and reassess changes.
Omitting zero-income employees from the remittance statement. They still belong on it at HK$0.
Using monthly thresholds for weekly staff. Daily minimum HK$280 and maximum HK$1,000, scaled to the wage period.
Missing exit requirements. Check final contributions, applicable cessation notifications and later bonuses separately from tax reporting and termination payments.
Setup Checklist
1. Identify the legal employer and confirm the worker is an employee rather than a genuine independent contractor.
2. Check age, start date, visa duration and overseas scheme status for each hire.
3. Map every pay code as MPF-relevant or not, before the first run.
4. Configure the applicable start date, employee holiday and income thresholds.
5. Set the wage period correctly — it drives which thresholds apply.
6. Set enrolment and remittance deadlines, allowing time for review and funding.
7. Provide monthly pay-records within seven working days after remittance, subject to the applicable Industry Scheme exception.
8. Document final contributions, applicable cessation notifications and any later payments.
For related employer reporting, benefits and exit costs, see the Hong Kong payroll and employment-cost guide. Keep MPF contributions, salaries tax and contractual benefits as separate payroll controls.
How NNRoad Handles This
If your company is already the employer, Payroll Outsourcing provides payroll calculations, payslips and related reports, including MPF calculations and schedules. Your company retains employment, enrolment and payment responsibilities. If you need local employees without becoming their employer, EOR places employment and MPF administration with the Local Team while you manage daily work. On-Demand Talent is for genuine independent contractors; a short project alone does not establish contractor status.
Not sure what your first MPF run should look like?
Share the proposed start date, wage period, salary and relevant coverage details. NNRoad will assess the payroll requirements and advise on the appropriate service. Our risk-management support depends on accurate, timely information and your following our advisers’ recommendations.
FAQ
How much does an employer contribute to MPF?
For a covered monthly paid regular employee, the employer contributes 5% of relevant income, capped at HK$1,500 for a normal full month. Below HK$7,100, the employer still pays 5% but the employee pays no mandatory contribution.
When is my first MPF contribution due for a new employee?
For a new monthly paid regular employee, payment is generally due by the 10th of the month after the month containing the 60th day of employment, subject to permitted extensions. Enrolment has a separate 60-day deadline. Casual employees follow different rules.
When does the employee start contributing?
A covered regular employee has a contribution holiday for the first 30 days and the immediately following incomplete wage period. Contributions then apply subject to the income threshold. Employer contributions accrue from day one; casual employees have no contribution holiday.
How is MPF calculated for weekly or daily paid staff?
For regular employees, multiply HK$280 and HK$1,000 by the days in the wage period to find its lower and upper income thresholds. A seven-day period gives HK$1,960 and HK$7,000. Casual employees in Industry Schemes use designated contribution scales instead.
Is payment in lieu of notice subject to MPF?
No. Payment in lieu of notice is outside relevant income. Statutory severance and long service payments are also excluded.
Do foreign employees need MPF?
Foreign nationality alone does not give an exemption. Certain employees entering Hong Kong for employment are exempt because they belong to an overseas retirement scheme or have permission to stay for no more than 13 months. Review the evidence and any extension of stay.
Can MPF still offset severance or long service payment?
Mandatory employer MPF benefits cannot offset the portion relating to service from 1 May 2025. Transitional rules apply to earlier service; employer voluntary contributions and qualifying service-based gratuities have separate offsetting rules.
Hiring in Hong Kong without your own company?
With NNRoad’s Hong Kong EOR service, the Local Team employs local staff and handles employment administration, payroll and MPF obligations. You direct their daily work. Clients can access employee information, reports and payslips through the online portal; employees can view their payslips.