What is the MPF limit? An overview of the contribution limits and calculation methods for employees and self-employed persons' Mandatory Provident Fund.

The MPF contribution limit is calculated independently for each "employment contract." For general employees, if the monthly salary exceeds HK$30,000, both the employer and employee can contribute a maximum of HK$1,500; self-employed individuals can contribute a maximum of HK$18,000 per year.

Summary of key points

• The monthly income limit for general employees is HK$30,000.
• The monthly mandatory contribution limit for both employers and employees is HK$1,500.
• If the monthly salary is below HK$7,100, the employee is exempt from contributions, but the employer still has to pay 5%.
• Self-employed individuals calculate contributions based on annual income, with the contribution rate also being 5%.
• Multiple job holders (Slashie): Each job requires independent contributions and cannot combine exemptions.

What is the MPF limit? An overview of the contribution limits for different identities.

General employees (monthly salary): Mandatory contribution limit HK$1,500.

Under the current MPF system, for general employees,Mandatory contributions(Mandatory Contribution)The rate is 5% of the relevant income.There are also upper and lower limits:

• The minimum relevant income: HK$7,100. If the employee's monthly salary is below this level, the employee does not need to contribute (the employer still needs to contribute).
• The maximum relevant income: HK$30,000. When the employee's monthly salary exceeds this, regardless of how high the actual monthly salary is,both the employer and employee have a maximum limit of HK$1,500 per month.。

Relevant monthly income	Employer contribution (5%)	Employee contribution (5%)	Total monthly contribution
HK$7,100 or below	Income × 5%	HK$0 (no contribution required)	Income × 5%
HK$7,100 – $30,000	Income × 5%	Income × 5%	Income × 10%
HK$30,000 or above	HK$1,500 (capped)	HK$1,500 (capped)	HK$3,000

The higher the monthly salary, the actual contribution amount will be "capped" and will not increase indefinitely.

Self-employed individuals (annual contribution): maximum contribution amount HK$18,000 

If you are self-employed (e.g., taxi drivers, private tutors, or sole proprietors), the contribution rate is also 5%.Since income is often not fixed monthly, you can choose to calculate the contribution limit "annually."

• Annual income limit: HK$360,000
• Contribution percentage: 5% of the relevant income
• Annual maximum contribution amount：HK$18,000 (i.e., $360,000 × 5%)

If your annual net loss or income is below HK$85,200 (i.e., HK$7,100 per month), then mandatory contributions are not required, but you still need to report to the MPF Authority.

Monthly salary exceeding HK$30,000? Three case analyses

After understanding the basic rules, for ease of understanding, we will illustrate the practical application of the MPF limit with three common scenarios.

Case 1: Fixed monthly salary HK$50,000 (capped)

Scenario: Mr. Chen is the company manager with a fixed monthly salary of HK$50,000 and no other allowances. Although Mr. Chen's monthly salary far exceeds HK$30,000, according to the law, mandatory contributions are only calculated up to the limit.

• The income is calculated based on HK$30,000.
• Employee contribution: HK$1,500.
• Employer contribution: HK$1,500.

Case Two: Salary does not reach the limit, but with the bonus, it "explodes."

Scenario: Miss Wang has a salary of HK$20,000. The company distributes a year-end bonus of HK$20,000 in December, bringing her total income in December to HK$40,000.

Since MPF adopts the principle of "monthly independent calculation," the actual impact will only trigger in the month of distribution:

• January to November: Monthly income HK$20,000, not reaching the limit. Both employer and employee contribute HK$1,000 ($20,000 × 5%).
• December: Total income HK$40,000, which exceeds the limit of HK$30,000. Both employee and employer can contribute a maximum of HK$1,500.

Case Three: Holding two jobs, both exceeding the limit.

Scenario: Mr. Zhang works at Company A in the morning (monthly salary HK$35,000) and has a part-time job at Company B in the evening (monthly salary HK$32,000). Since the MPF contribution responsibility follows the "employment contract," it does not only consider "total personal income," so each job must be calculated independently.

• Company A: Income exceeds the limit, both employer and employee contribute HK$1,500.
• Company B: Income exceeds the limit, both employer and employee contribute HK$1,500.

Although Mr. Zhang contributes a total of HK$3,000 (HK$36,000 annually) in mandatory contributions each month, the annual tax-deductible limit for mandatory MPF contributions when calculating salary tax remains HK$18,000, so the excess contributions (i.e., the additional HK$18,000) cannot be claimed for tax deduction.

Frequently Asked Questions

Under what circumstances can one be exempted from or temporarily exempted from MPF contributions?

If income is below the lower limit (below HK$7,100) or within the first 30 days of employment, employees can enjoy an exemption period and are not required to contribute for the first month (or incomplete month). However, employers do not have an exemption period and must start calculating contributions from the first day of employment.

Will the MPF limit be adjusted?

As of 2025, the contribution limit will remain at HK$1,500. Although the MPF Authority has indeed proposed to gradually raise the income limit to HK$33,000 or higher to reflect inflation and wage levels, this proposal is still under review, and it is recommended to regularly check for the latest announcements.

Is there a different contribution limit for part-time workers?

As long as they meet the definition of "employee," the contribution ratio and limit for part-time workers are the same as those for full-time employees.

Can MPF contributions be tax-deductible?

Yes, employees can deduct up to HK$18,000 of their income for the "mandatory contributions" portion each year.

What is the limit for tax-deductible voluntary contributions (TVC)?

TVC is an additional contribution made to enhance retirement protection and save on taxes, with a total tax deduction limit of HK$60,000。

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