Hong Kong MPF & Social Contributions Guide
Hong Kong MPF — 5% each employee and employer up to HKD 1,500/month, no social security tax, contribution limits, and compliance.
Hong Kong operates a Mandatory Provident Fund (MPF) system as its primary social security framework. Unlike many jurisdictions, Hong Kong has no separate social security tax — the MPF serves as both the retirement savings and social security contribution system. Understanding your MPF obligations is essential for employers and employees operating in Hong Kong. See also our guides on Pension & Retirement Planning, Salaries Tax, and Business Registration.
MPF Contribution Rates
The MPF requires mandatory contributions from both employees and employers. Each party contributes 5% of the employee's relevant income, subject to a maximum cap. For 2026, the maximum monthly relevant income cap is HKD 30,000, meaning the maximum monthly contribution per party is HKD 1,500 (5% of HKD 30,000). Employees earning below HKD 7,100 per month are exempt from making employee contributions, but the employer must still contribute 5%.
The contribution structure is straightforward: the employer deducts the employee's share from their salary and adds their own 5% contribution, then remits the total to the chosen MPF trustee scheme. All contributions are tax-deductible for employers and are not subject to Salaries Tax for employees — the employee contribution is deducted from their assessable income.
No Social Security Tax
Hong Kong does not impose a social security tax akin to the US FICA, UK National Insurance, or Singapore's CPF. The MPF system is the closest equivalent, but it functions as a funded retirement savings scheme rather than a pay-as-you-go social insurance programme. There are no contributions for unemployment insurance, disability insurance, or healthcare through a social security system. This makes Hong Kong's statutory employment costs among the lowest in developed economies — total mandatory employer contributions are capped at just 5% of payroll (up to HKD 1,500/month per employee).
Employers should note that while there is no social security tax, they may also need to provide employees with statutory benefits such as paid annual leave, sick leave, and severance pay under the Employment Ordinance. These are separate from the MPF and are governed by Hong Kong's employment legislation.
Voluntary Contributions (VC)
Beyond the mandatory 5%, both employers and employees can make voluntary contributions (VC) to an MPF scheme. These are not capped and can provide significant additional retirement savings. Employees can contribute voluntarily on a regular or one-off basis. Employers often use voluntary contributions as a staff retention tool, offering enhanced employer contributions above the statutory minimum.
Voluntary contributions are locked in until the employee reaches age 65, unless earlier withdrawal is permitted under specific circumstances (permanent departure from Hong Kong, total incapacity, death, or early retirement after age 60). Tax treatment varies — employer VC is tax-deductible up to 15% of the employee's emoluments, while employee VC is not tax-deductible.
MPF Contribution Tables (HKD)
| Monthly Relevant Income | Employee Contribution (5%) | Employer Contribution (5%) | Total Contribution |
|---|---|---|---|
| Below 7,100 | 0 | 5% of income | 5% of income |
| 7,100 – 30,000 | 5% of income | 5% of income | 10% of income |
| Above 30,000 | 1,500 (max) | 1,500 (max) | 3,000 (max) |
Compliance and Penalties
Employers must enrol new employees in an MPF scheme within the first 60 days of employment. Failure to make contributions on time attracts a surcharge of 5% of the outstanding amount plus interest at the prescribed rate. Wilful evasion of MPF obligations is a criminal offence punishable by fines of up to HKD 350,000 and imprisonment of up to 3 years. The Mandatory Provident Fund Schemes Authority (MPFA) oversees compliance and can pursue enforcement actions against non-compliant employers.
Self-employed individuals must also join the MPF system and contribute 5% of their relevant income, capped at HKD 1,500 per month, unless they are exempt (e.g., hawkers or certain small business owners). The contribution level for self-employed persons is based on their declared income as assessed under the Profits Tax regime.