Hong Kong Mandatory Provident Fund contribution strategy
Contribution Rates Employers and employees each need to make regular mandatory contributions of 5% of the employee’s relevant income to an MPF scheme. This is subjected to the minimum and maximum relevant income levels.
When must MPF be contributed?
10th day of each month
Employers must pay the MPF contributions for all their monthly-paid employees to their trustee, on or before the 10th day of each month. If a contribution day falls on a Saturday, a Sunday, a public holiday, a gale warning day (i.e. Tropical Cyclone Warning Signals No.
Do foreigners pay MPF in Hong Kong?
Expatriates are exempt persons if: They enter Hong Kong to work for less than 13 months, or. They are covered by an overseas retirement scheme.
Mandatory Provident Fund Schemes (MPF)
| Monthly relevant income (HKD) | Employer contribution | Employee/self-employed contribution |
|---|---|---|
| 6,500 – 25,000 | 5% | 5% |
How much MPF does employer pay?
Under MPF legislation, employers and employees are both required to make mandatory contributions calculated at 5% of the employee’s relevant income.
Contribution.
| Employee’s monthly relevant income | Less than HKD7,100 |
|---|---|
| Employer’s mandatory contribution | Relevant income x 5% |
| Employee’s mandatory contribution | Relevant income x 5% |
When was MPF introduced in HK?
December 1, 2000
The Mandatory Provident Fund Schemes Authority (“MPFA”) was established on September 17, 1998 to regulate, supervise and monitor the operation of the MPF System. The MPF System has come into operation since December 1, 2000.
How much is MPF HK?
MPF Hong Kong contribution
| Monthly income | Employer MPF contribution | Employee MPF contribution |
|---|---|---|
| Under 7,100 HKD | 5% of relevant income | Not required |
| 7,100 – 30,000 HKD | 5% of relevant income | 5% of relevant income |
| 30,000 HKD or more | 1,500 HKD | 1,500 HKD |
How is SSS calculated?
How to Calculate Your SSS Contribution
- The current SSS contribution rate is 13% of the monthly salary credit not exceeding P25,000 and this is being shared by the employer (8.50%) and the employee (4.50%).
- For instance, a person earning Php10,000 will have a contribution of Php1,310.00.
- Out of this amount, only Php450.
When can I stop paying SSS contributions?
When should I stop paying SSS contribution?
- You can stop paying contributions after you make a final SSS benefit claim for total disability or retirement.
- However, voluntary members may continue paying the contribution in their retirement years.