Glossary/MPF (Hong Kong)
Labour law
MPF (Hong Kong)
Employer and employee each pay 5% of relevant income, currently capped at HK$1,500 a side, with a relevant-income cap of HK$30,000. A proposed rise in that cap has been discussed; it is not in force on our hiring guide until MPFA implements it.
Offsetting severance or long-service payment against MPF accrued benefits is a changing area. Calculate both before you issue a termination letter.
Countries
Where this shows up
FAQ
Questions we get
- Do expatriates pay MPF?
- Most employees hired in Hong Kong are covered, with limited exemptions (including some overseas-plan cases). Confirm the person's status; do not assume a foreign passport is an exemption.
Related
Other terms
CPF (Singapore)
Central Provident Fund: mandatory contributions for Singapore citizens and permanent residents. The ordinary-wage ceiling is S$8,000 a month from 1 January 2026.
Social insurance
Mandatory employer and employee contributions for pension, medical, unemployment, and work-injury cover, calculated on a contribution base in the country of work.
Severance
The statutory or contractual payment due when employment ends without a fault dismissal — often a formula of months per year of service, not a negotiation opener.
Statutory employer cost
The mandatory amounts the employer pays on top of gross wages: social insurance, funds, levies, and extra-month rules — not a market salary.
Reviewed 11 September 2026. Statutory figures follow the country hiring guides. This is a briefing for multinational employers, not legal advice. For Hong Kong, start with the hiring guide.
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