MPF in Hong Kong 2027: Contributions, Exemptions & Withdrawal

The Mandatory Provident Fund (MPF) is Hong Kong's compulsory retirement scheme. You and your employer each pay 5% of your monthly relevant income, capped at HK$1,500 each once you earn more than HK$30,000 a month. Expats on an employment visa are exempt for their first 13 months if they stay no longer than that, and anyone already in an overseas retirement scheme can be exempt. You can normally only take the money out at 65, but if you leave Hong Kong for good you can withdraw it once in your lifetime, with a statutory declaration and proof that you can live elsewhere.

This guide covers who must join, how much is deducted, the expat exemptions, what happens when you change jobs, tax deductions, and exactly how to claim your MPF when you leave. For the tax side of your payslip, see our Hong Kong salaries tax guide.

What Is the MPF?

The MPF is a mandatory, privately managed pension scheme. Your employer enrols you with an approved trustee (HSBC, Manulife, BCT, Sun Life and others run schemes), and contributions go into funds you choose.

It is regulated by the Mandatory Provident Fund Schemes Authority (MPFA). Employees and self-employed people aged 18 to 64 must join unless they are exempt.

Two features matter most to expats:

• Mandatory contributions vest immediately. Both your 5% and your employer's 5% are yours from day one, even if you leave after six months.
• The money is locked until 65. There are only a handful of early withdrawal grounds, and permanent departure from Hong Kong is the one most foreigners use.

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How Much Is the MPF Contribution?

Both you and your employer contribute 5% of your relevant income, within a minimum and maximum income level set by the MPFA.

Source: MPFA, mandatory contributions for employees.

So the most you can be required to pay is HK$1,500 a month, or HK$18,000 a year. On a HK$60,000 salary that is just 2.5% of your pay, which is one reason the MPF feels small compared with pensions in the UK or Australia.

What counts as relevant income? All money your employer pays you: wages, salary, leave pay, commissions, bonuses, double pay, gratuities and cash allowances. Severance and long service payments are excluded. Because the HK$30,000 cap applies per contribution period, a large bonus paid in one month usually just takes you to the HK$1,500 maximum for that month.

When Do MPF Contributions Start?

Your employer must enrol you within your first 60 days. Then:

• Employer contributions start from your first day of employment. There is no holiday on the employer's side.
• Your own contributions start after 30 days. You are not required to contribute for the first 30 days of employment, or for the rest of the incomplete wage period that includes day 30.
• Contributions are due by the 10th of the following month in most cases, paid by your employer to the trustee.

Source: MPFA, mandatory contributions for employees.

Check your first two payslips. If there's no MPF line by your second or third month, ask HR which trustee you have been enrolled with.

Are Expats Exempt From the MPF?

Some are. The MPFA's coverage rules set out the main exemptions that apply to foreigners:

Sources: MPFA, MPF coverage and Hong Kong government talent portal pension guide (March 2025).

In practice, almost everyone hired locally on a GEP work visa or as a Top Talent Pass holder ends up in the MPF, because visas are usually granted for two years or more. The 13-month exemption mostly helps people on short contracts.

If you are on an IANG visa after graduating in Hong Kong, you are covered from your first job.

Can You Opt Out of the MPF?

Not if you are covered. The contribution is compulsory for both you and your employer, and an employment contract cannot waive it.

What you can control:

• Your fund choice. If you don't choose, your money goes into the Default Investment Strategy (DIS), which reduces risk automatically as you approach 65.
• Where your own contributions sit. Under the Employee Choice Arrangement you can transfer the MPF from your own mandatory contributions in your current job to a scheme of your choice once a year.
• Voluntary top-ups. You can add tax-deductible voluntary contributions (TVC) on top.

What Happens to Your MPF When You Change Jobs?

Your MPF stays yours. When you leave an employer you choose what happens to the balance, with two options:

1. Transfer to your new employer's scheme, or
2. Transfer to a personal account in a scheme of your choice.

If you do nothing, the balance is usually moved to a personal account automatically. Over a few job moves, people often end up with three or four small accounts. Consolidate them: it is easier to track, and you only make one claim when you leave Hong Kong.

The government's eMPF Platform now handles enrolment, transfers and claims for schemes that have joined it, so you can see and manage accounts in one place rather than chasing each trustee.

Can You Get a Tax Deduction for MPF?

Yes, two kinds.

Sources: IRD MPF deduction FAQ and PwC Worldwide Tax Summaries, Hong Kong deductions.

The mandatory deduction is automatic in practice: you claim it on your tax return. TVC is optional. Paying HK$60,000 a year into a TVC account can save up to HK$10,200 in tax at the 17% marginal rate.

Is TVC worth it for an expat? Only if you are reasonably sure you'll stay a while or leave for good. TVC money follows the same withdrawal rules as mandatory contributions, so it is locked until 65 unless you use an early withdrawal ground such as permanent departure.

Can You Withdraw Your MPF Early?

Only on specific grounds. Apart from reaching 65, the MPFA lists six early withdrawal grounds:

Leaving your job, losing your visa, buying a flat or going on a working holiday are not grounds. The MPFA has said explicitly that a working holiday visa abroad does not count as permanent departure.

How to Withdraw Your MPF When You Leave Hong Kong

This is the process most expats need. Here's how it works.

1. Decide whether you are really leaving for good. You must declare that you have departed or will depart to reside elsewhere, with no intention of returning to work or settle as a permanent resident.
2. Gather proof that you can live elsewhere. Trustees accept documents such as a foreign passport or residence permit, overseas settlement documents, utility bills at your new address, or the IRD's tax letter of release.
3. Make a statutory declaration. It must be an original, sworn before a Commissioner for Oaths at a Home Affairs Department office, a notary public or a justice of the peace in Hong Kong, or the equivalent overseas. If you have money with more than one trustee, you need a separately signed declaration for each.
4. Submit the claim, now through the eMPF Platform for schemes on it, with your ID document, the declaration and your evidence.
5. Wait for payment. Trustees generally have to pay within 30 days of receiving all the required documents.

Source: MPFA, early withdrawal.

A few practical tips from people who have done it:

• Swear the declaration before you fly. It is quicker at a Home Affairs Department office than at a consulate abroad.
• Consolidate first. One account means one claim and one declaration.
• Keep your Hong Kong bank account open until the money arrives, or check whether your trustee can pay overseas.
• Sort out your tax at the same time. Your employer must file an IR56G before you leave, and the IRD's letter of release doubles as departure evidence. Our salaries tax guide covers that process.

What If You Come Back to Hong Kong?

You can only withdraw on the permanent departure ground once in your lifetime. If you return, work and join the MPF again, that later balance stays locked until 65 or another ground applies.

The MPFA takes false declarations seriously. Making a false or misleading statutory declaration can bring a fine of up to HK$100,000 and a year in prison for a first offence, and members have been sentenced to imprisonment for repeat claims, according to an MPFA press release from June 2021.

If there is a real chance you will be back within a few years, it can make sense to leave the money invested rather than claim it.

Does Your Employer's MPF Reduce Your Severance?

Not any more, for service after 1 May 2025. Before that date employers could use their mandatory MPF contributions to offset severance and long service payments. That "offsetting" was abolished from the 1 May 2025 transition date, although employer voluntary contributions can still be used to offset.

For the full rules on severance, see our Employment Ordinance guide.

MPF for Expats: Common Mistakes

• Assuming you're exempt because you're foreign. The exemption only covers employment visa holders for their first 13 months, or members of an overseas scheme.
• Losing track of old accounts. Check the eMPF Platform for accounts from previous jobs.
• Claiming on a working holiday. It does not count as permanent departure.
• Leaving the money in a high-fee fund. Check the fund expense ratios and consider the DIS or a low-cost index fund.
• Forgetting the HK$18,000 deduction. Claim your mandatory contributions on your tax return every year.

FAQs: MPF in Hong Kong

How much is MPF per month in Hong Kong?

You and your employer each pay 5% of your monthly relevant income. Anyone earning HK$30,000 or more pays the maximum of HK$1,500 a month, matched by the employer. If you earn less than HK$7,100 a month you pay nothing, but your employer still contributes 5%.

Do expats have to pay MPF in Hong Kong?

Usually, yes. Employment visa holders are exempt only for their first 13 months if they stay no longer than that, and members of an overseas retirement scheme can be exempt. Most locally hired foreigners on two-year visas must join.

Can I withdraw my MPF if I leave Hong Kong?

Yes, once in your lifetime, on the ground of permanent departure. You need a statutory declaration that you are leaving to reside elsewhere and documents proving you can live outside Hong Kong. Trustees generally pay within 30 days of receiving everything.

Can I withdraw MPF if I lose my job?

No. Unemployment is not a withdrawal ground. Your balance stays invested, and you can transfer it to a personal account.

What happens to my MPF if I don't claim it when I leave?

Nothing bad. It stays invested in your account until you reach 65 or claim on another ground. You can claim permanent departure later from abroad, as long as you can provide the documents and statutory declaration.

Do I pay tax on my MPF withdrawal?

No. Lump-sum MPF withdrawals from mandatory contributions are not subject to Hong Kong salaries tax. Your home country may tax the withdrawal or the growth, so check its rules.

Is the MPF exemption automatic for the first 13 months?

It applies to people admitted for employment who stay no more than 13 months. If you stay longer, your employer must enrol you within 60 days after the 13 months end. Many employers simply enrol everyone from the start.

Does my bonus count for MPF?

Yes. Bonuses, commissions and double pay are relevant income. Because the cap is HK$30,000 per month, a bonus paid in one month usually just takes that month's contribution to the HK$1,500 maximum.

How do I find old MPF accounts?

Log in to the eMPF Platform, which shows accounts for schemes that have joined it. You can also contact your previous employers' trustees with your HKID number.

Key Takeaways

• You and your employer each contribute 5% of relevant income, up to HK$1,500 a month each once you earn more than HK$30,000.
• Employer contributions start on day one; your own start after your first 30 days.
• Employment visa holders are exempt only if they stay 13 months or less; most locally hired expats must join.
• Mandatory contributions (up to HK$18,000) and TVC (up to HK$60,000 combined with annuity premiums) are tax-deductible.
• MPF is locked until 65, except for six early withdrawal grounds.
• Leaving Hong Kong for good lets you withdraw once in your lifetime with a statutory declaration and proof you can live elsewhere; trustees pay within about 30 days.
• A false declaration can mean a HK$100,000 fine and a year in prison.

Find a Job With a Better Package in Hong Kong

MPF is a small part of a Hong Kong package, so the salary and benefits still decide whether a move is worth it. Browse English-speaking jobs in Hong Kong on ExpatJobBoard.com and compare offers properly.