{"id":7931,"date":"2026-01-09T12:04:43","date_gmt":"2026-01-09T04:04:43","guid":{"rendered":"https:\/\/setuphk.com\/?p=7931"},"modified":"2026-01-09T12:04:43","modified_gmt":"2026-01-09T04:04:43","slug":"mpf-contribution-cap","status":"publish","type":"post","link":"https:\/\/setuphk.com\/en\/mpf-contribution-cap\/","title":{"rendered":"MPF contribution cap: maximum amounts and examples | SetupHK"},"content":{"rendered":"<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">The MPF contribution cap is calculated separately for \u201ceach employment contract\u201d. 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.<\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\">Key takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The monthly income cap for a regular employee is HK$30,000<\/li>\n\n\n\n<li>The monthly mandatory contribution cap for the employer and the employee is HK$1,500 each<\/li>\n\n\n\n<li>With a monthly salary below HK$7,100, the employee is exempt from contributing, but the employer must still contribute 5%<\/li>\n\n\n\n<li>A self-employed person's contributions are calculated on annual income, at the same rate of 5%<\/li>\n\n\n\n<li>Multiple jobs (slashies): each job requires separate contributions, and exemptions cannot be combined<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the MPF cap? Contribution caps for different statuses at a glance<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Regular employee (monthly pay): maximum mandatory contribution of HK$1,500<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Under the current MPF system, a regular employee's <a href=\"https:\/\/zh.wikipedia.org\/zh-tw\/%E5%BC%B7%E5%88%B6%E6%80%A7%E5%85%AC%E7%A9%8D%E9%87%91\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>mandatory contributions<\/strong><\/a> (Mandatory Contribution) <strong>are 5% of relevant income<\/strong>, subject to both a maximum and a minimum:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>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)<\/li>\n\n\n\n<li>Maximum relevant income: HK$30,000. When an employee's monthly salary is above this, however high the actual salary is, <strong>the employer and the employee are each capped at a maximum of HK$1,500 a month<\/strong>.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\">Monthly relevant income<\/td><td class=\"has-text-align-center\" data-align=\"center\">Employer contribution (5%)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Employee contribution (5%)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Total monthly contribution<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Below HK$7,100<\/td><td class=\"has-text-align-center\" data-align=\"center\">Income \u00d7 5%<\/td><td class=\"has-text-align-center\" data-align=\"center\">HK$0 (no contribution required)<\/td><td class=\"has-text-align-center\" data-align=\"center\">Income \u00d7 5%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">HK$7,100 \u2013 $30,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">Income \u00d7 5%<\/td><td class=\"has-text-align-center\" data-align=\"center\">Income \u00d7 5%<\/td><td class=\"has-text-align-center\" data-align=\"center\">Income \u00d7 10%<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Above HK$30,000<\/td><td class=\"has-text-align-center\" data-align=\"center\">HK$1,500 (capped)<\/td><td class=\"has-text-align-center\" data-align=\"center\">HK$1,500 (capped)<\/td><td class=\"has-text-align-center\" data-align=\"center\">HK$3,000<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">However high the monthly salary, the actual contribution is \u201ccapped\u201d and does not increase without limit.<\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\">Self-employed persons (annual contribution): maximum contribution of HK$18,000&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">For self-employed persons (such as taxi drivers, private tutors or sole proprietors), the contribution rate is likewise&nbsp; <strong>5%.<\/strong> Because income is often not fixed month by month, you can choose to calculate the contribution cap on an annual basis.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Annual relevant income cap: HK$360,000<\/li>\n\n\n\n<li>Contribution rate: 5% of relevant income<\/li>\n\n\n\n<li><strong>Maximum annual contribution<\/strong>: <strong>HK$18,000<\/strong> (i.e. $360,000 \u00d7 5%)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How is it calculated if the monthly salary exceeds HK$30,000? Three case studies<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To make the basic rules easier to understand, we use three common situations to show how the MPF cap applies in practice.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Case 1: fixed monthly salary of HK$50,000 (capped)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Relevant income is taken as HK$30,000.<\/li>\n\n\n\n<li>Employee contribution: HK$1,500.<\/li>\n\n\n\n<li>Employer contribution: HK$1,500.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Case 2: basic salary below the cap, but \u201cover the cap\u201d once a bonus is added<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Because MPF follows a \u201ccalculated separately each month\u201d principle, the actual effect is triggered only in the month the bonus is paid:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>January to November: monthly income of HK$20,000, below the cap. The employer and the employee each contribute HK$1,000 ($20,000 \u00d7 5%).<\/li>\n\n\n\n<li>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.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Case 3: two jobs, both over the cap<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Scenario: \u5f35\u5148\u751f 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 \u201cemployment contract\u201d and not just \u201ctotal personal income\u201d, each job must be calculated separately.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Company A: income is over the cap, so the employer and the employee each contribute HK$1,500.<\/li>\n\n\n\n<li>Company B: income is over the cap, so the employer and the employee each contribute HK$1,500.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Although \u5f35\u5148\u751f 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.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQ<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">When can MPF contributions be waived or temporarily waived?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Will the MPF cap be adjusted?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">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.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is the contribution cap different for part-time work?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As long as the person meets the definition of an \u201cemployee\u201d, a part-time worker's contribution rate and cap are the same as those of a full-time employee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Are MPF contributions tax-deductible?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. For the mandatory contribution portion, an employee can deduct up to HK$18,000 of income each year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the cap on tax-deductible voluntary contributions (TVC)?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">TVC is an additional contribution made on top of mandatory contributions, to strengthen retirement protection and save tax. The combined tax-deduction cap is <strong>HK$60,000<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">SetupHK: your one-stop company formation specialist, bringing you the latest Mandatory Provident Fund information<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Handling a company's human resources and MPF calculations often involves many details and regulatory requirements. Whether you have just set up a company and need to open an MPF account, or have questions about payroll calculation or annual tax filing, the <a href=\"https:\/\/setuphk.com\/en\/about-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">SetupHK<\/a> team can offer comprehensive advice and services to help you grasp the key regulatory points and reduce unnecessary risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>MPF \u4f9b\u6b3e\u4e0a\u9650\u4ee5\u300c\u6bcf\u4efd\u53d7\u50f1\u5408\u7d04\u300d\u7368\u7acb\u8a08\u7b97\u3002\u4e00\u822c\u50f1\u54e1\u6708\u85aa\u8d85\u904e HK$30,000\uff0c\u50f1\u4e3b\u8207\u50f1\u54e1\u5404\u81ea\u6700\u591a\u4f9b HK$ [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7932,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[339],"tags":[342,343],"class_list":["post-7931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment-legislation","tag-mpf","tag-343"],"_links":{"self":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts\/7931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/comments?post=7931"}],"version-history":[{"count":1,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts\/7931\/revisions"}],"predecessor-version":[{"id":7933,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/posts\/7931\/revisions\/7933"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/media\/7932"}],"wp:attachment":[{"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/media?parent=7931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/categories?post=7931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/setuphk.com\/en\/wp-json\/wp\/v2\/tags?post=7931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}