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The MPF contribution cap is calculated separately for “each employment contract”. For a regular employee earning more than HK$30,000 a month, the employer and the employee each contribute at most HK$1,500; a self-employed person contributes at most HK$18,000 a year.
Key takeaways
- The monthly income cap for a regular employee is HK$30,000
- The monthly mandatory contribution cap for the employer and the employee is HK$1,500 each
- With a monthly salary below HK$7,100, the employee is exempt from contributing, but the employer must still contribute 5%
- A self-employed person's contributions are calculated on annual income, at the same rate of 5%
- Multiple jobs (slashies): each job requires separate contributions, and exemptions cannot be combined
What is the MPF cap? Contribution caps for different statuses at a glance
Regular employee (monthly pay): maximum mandatory contribution of HK$1,500
Under the current MPF system, a regular employee's mandatory contributions (Mandatory Contribution) are 5% of relevant income, subject to both a maximum and a minimum:
- Minimum relevant income: HK$7,100. If an employee's monthly salary is below this level, the employee does not need to contribute (the employer must still contribute)
- Maximum relevant income: HK$30,000. When an employee's monthly salary is above this, however high the actual salary is, the employer and the employee are each capped at a maximum of HK$1,500 a month.
| Monthly relevant income | Employer contribution (5%) | Employee contribution (5%) | Total monthly contribution |
| Below HK$7,100 | Income × 5% | HK$0 (no contribution required) | Income × 5% |
| HK$7,100 – $30,000 | Income × 5% | Income × 5% | Income × 10% |
| Above HK$30,000 | HK$1,500 (capped) | HK$1,500 (capped) | HK$3,000 |
However high the monthly salary, the actual contribution is “capped” and does not increase without limit.
Self-employed persons (annual contribution): maximum contribution of HK$18,000
For self-employed persons (such as taxi drivers, private tutors or sole proprietors), the contribution rate is likewise 5%. Because income is often not fixed month by month, you can choose to calculate the contribution cap on an annual basis.
- Annual relevant income cap: HK$360,000
- Contribution rate: 5% of relevant income
- Maximum annual contribution: HK$18,000 (i.e. $360,000 × 5%)
If you have a net loss for the year, or your income is below HK$85,200 a year (i.e. HK$7,100 a month), you do not need to make mandatory contributions, but you must still make a declaration to the MPFA.
How is it calculated if the monthly salary exceeds HK$30,000? Three case studies
To make the basic rules easier to understand, we use three common situations to show how the MPF cap applies in practice.
Case 1: fixed monthly salary of HK$50,000 (capped)
Scenario: Mr Chan is a company manager with a fixed monthly basic salary of HK$50,000 and no other allowances. Although his monthly salary is well above HK$30,000, under the law mandatory contributions are calculated only up to the cap.
- Relevant income is taken as HK$30,000.
- Employee contribution: HK$1,500.
- Employer contribution: HK$1,500.
Case 2: basic salary below the cap, but “over the cap” once a bonus is added
Scenario: Ms Wong has a basic salary of HK$20,000. The company pays a year-end bonus of HK$20,000 in December, so her total income in December reaches HK$40,000.
Because MPF follows a “calculated separately each month” principle, the actual effect is triggered only in the month the bonus is paid:
- January to November: monthly income of HK$20,000, below the cap. The employer and the employee each contribute HK$1,000 ($20,000 × 5%).
- December: total income of HK$40,000, which exceeds the HK$30,000 cap. The employee and the employer each contribute at most HK$1,500.
Case 3: two jobs, both over the cap
Scenario: 張先生 works at Company A in the daytime (monthly salary HK$35,000) and part-time at Company B in the evening (monthly salary HK$32,000). Because the MPF contribution obligation follows the “employment contract” and not just “total personal income”, each job must be calculated separately.
- Company A: income is over the cap, so the employer and the employee each contribute HK$1,500.
- Company B: income is over the cap, so the employer and the employee each contribute HK$1,500.
Although 張先生 pays a total of HK$3,000 a month (HK$36,000 a year) in mandatory contributions, when calculating salaries tax the annual cap on deductible mandatory MPF contributions is still HK$18,000, so the excess contributions (the other HK$18,000) cannot be claimed as a tax deduction.
FAQ
When can MPF contributions be waived or temporarily waived?
If income is below the minimum level (below HK$7,100), or within the first 30 days of new employment, an employee enjoys a contribution holiday and need not contribute for the first month (or an incomplete month). However, employers do not have a contribution holiday and must still calculate contributions from the first day of employment.
Will the MPF cap be adjusted?
As at 2025, the contribution cap remains at HK$1,500. Although the MPFA has indeed proposed raising the income cap in stages to HK$33,000 or higher to reflect inflation and wage levels, the proposal is still under review, so we recommend keeping an eye on the latest announcements.
Is the contribution cap different for part-time work?
As long as the person meets the definition of an “employee”, a part-time worker's contribution rate and cap are the same as those of a full-time employee.
Are MPF contributions tax-deductible?
Yes. For the mandatory contribution portion, an employee can deduct up to HK$18,000 of income each year.
What is the cap on tax-deductible voluntary contributions (TVC)?
TVC is an additional contribution made on top of mandatory contributions, to strengthen retirement protection and save tax. The combined tax-deduction cap is HK$60,000.
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