Guide
How MPF contributions are calculated: the 5% rule, HK$7,100 and HK$30,000, plus a retirement projection
The Mandatory Provident Fund (MPF) is Hong Kong’s compulsory workplace pension. This guide covers how the monthly contribution is worked out and what those contributions might add up to by 65. The contribution rules come from the MPF Schemes Authority (MPFA), linked at the end. The projection is a hypothetical example.
To run your own numbers, use the MPF calculator.
How are MPF contributions calculated?
Monthly mandatory contribution (employer and employee, each) = relevant income × 5%, with relevant income capped at HK$30,000 (so at most HK$1,500 each). Below HK$7,100 a month, the employee’s share is zero but the employer still pays.
For monthly-paid employees, the employer and the employee each contribute 5% of “relevant income”:
- Below HK$7,100 a month: the employee pays nothing; the employer still pays 5%.
- HK$7,100 to HK$30,000: each pays 5%.
- Above HK$30,000: each pays a capped HK$1,500.
These are the MPFA’s current minimum and maximum relevant income levels (checked 3 October 2026).
| Monthly relevant income | Employer | Employee | Total paid in |
|---|---|---|---|
| HK$6,000 | 300 | 0 | 300 |
| HK$25,000 | 1,250 | 1,250 | 2,500 |
| HK$40,000 | 1,500 | 1,500 | 3,000 |
What counts as relevant income?
According to the MPFA, relevant income is all money paid or payable by the employer: wages, salary, leave pay, fees, commissions, bonuses, gratuities, perquisites and allowances. It excludes severance and long service payments under the Employment Ordinance. A bonus counts in the period it’s paid, but the HK$30,000 maximum still applies to that period. So a month of HK$25,000 salary plus a HK$50,000 bonus still means HK$1,500 each.
Who has to contribute, and when?
- Regular employees are those aged 18 to 64 who have been employed for 60 days or more. Unless exempt, they must be enrolled.
- Employer contributions start from day one. New employees get a 30-day contribution holiday for their own share.
- Contribution day for monthly-paid staff is generally the 10th of the following month.
- Self-employed people pay 5% of relevant income (there’s no employer share). Below HK$7,100 a month (HK$85,200 a year) they pay nothing. Above HK$30,000 a month (HK$360,000 a year) the contribution is capped at HK$1,500 a month (HK$18,000 a year).
How much could your MPF grow to by 65?
Assumptions: age 35, retiring at 65 (360 months), HK$200,000 existing balance, HK$2,500 a month paid in (HK$25,000 salary, no pay rises), annual return net of fees converted to a monthly rate, contributions at month-end. Checked month by month in Python:
| Assumed return (after fees) | Balance at 65 | Growth beyond the HK$1,100,000 paid in |
|---|---|---|
| 0% | HK$1,100,000 | HK$0 |
| 2% | HK$1,590,431 | HK$490,431 |
| 4% | HK$2,361,856 | HK$1,261,856 |
| 6% | HK$3,584,981 | HK$2,484,981 |
The formula is: balance = B × (1 + i)n + C × [(1 + i)n − 1] ÷ i, where i = (1 + annual return)1/12 − 1 and n is the number of months.
These figures aren’t adjusted for inflation, salary changes or gaps between jobs. They don’t represent any fund’s actual or expected return, and MPF returns can be negative in some years.
When can you withdraw your MPF?
Mandatory contributions vest in you immediately, but they’re generally payable at 65, as a lump sum or in instalments. Before 65, the MPFA lists these statutory grounds for early withdrawal: early retirement at 60 or over, permanent departure from Hong Kong, total incapacity, terminal illness, a small balance of HK$5,000 or less, or death.
FAQ
What is the most I pay into MPF each month?
For monthly-paid employees earning more than HK$30,000 of relevant income, the employee and the employer each pay a capped HK$1,500 a month.
Do I contribute if I earn less than HK$7,100 a month?
You don’t, but your employer still pays 5% of your relevant income.
Do bonuses and commissions count?
Yes. Cash bonuses, commissions and allowances are relevant income, but the HK$30,000 maximum still applies to each contribution period. Severance and long service payments don’t count.
How reliable is the projection?
It is a hypothetical estimate. The result depends on the assumed return, fees and years of contributions, and real returns vary from year to year.
Sources (checked 3 October 2026)
- MPFA, Mandatory contributions (employees): https://www.mpfa.org.hk/en/mpf-system/mandatory-contributions/employees
- MPFA, Mandatory contributions (self-employed persons): https://www.mpfa.org.hk/en/mpf-system/mandatory-contributions/self-employed-persons
- MPFA, FAQ (employees): https://www.mpfa.org.hk/en/info-centre/faq/employee/mpf-employee
- MPFA, Early withdrawal: https://www.mpfa.org.hk/en/mpf-system/withdrawal-of-mpf/early-withdrawal
Related: MPF tax deduction limits, Hong Kong salaries tax 2025/26 guide. Run your own numbers in the MPF calculator.
This article is general information, not investment, tax or financial advice. MPF investments carry risk and past performance does not predict future returns. See the disclaimer.