Starting a business in Hong Kong means you must contribute to your employees’ retirement security through the Mandatory Provident Fund (MPF).
You need to know how MPF works — including the types of schemes available and how to enroll employees — to comply with regulations and manage payroll .
This guide explains all you need to know about MPF in Hong Kong, the various MPF schemes, and how to sign up your employees and on schedule.
What Is the MPF in Hong Kong?
The Mandatory Provident Fund (MPF) is a required retirement savings plan to ensure Hong Kong’s workforce has financial security after they stop working.
The government set up the MPF under the Mandatory Provident Fund Schemes Ordinance (MPFSO) in 1995 and started it in 2000. The plan requires both employers and employees aged 18–64 to put money into retirement funds that approved MPF trustees manage.
The Mandatory Provident Fund Schemes Authority (MPFA) oversees the system making sure it stays clear, safe, and works well.
By 2015, MPF covered more than 85% of Hong Kong’s employees up from 33% in 2000 — showing how important the plan is to help the city’s older people.
The MPF system in Hong Kong makes employers and employees save 5% of their pay for retirement giving long-term money for when they’re older.
Know More: The Exemptions of MPF Schemes and Difference Between ORSO Scheme
Why MPF Matters to Employers
For employers, MPF compliance goes beyond a legal duty — it has an impact on your company’s trustworthiness and staff confidence.
If you don’t sign up employees or pay contributions on time, you might face fines from the MPFA and harm to your business’s image.
Using a payroll management system to automate MPF math and filings helps ensure correctness and adherence to rules while letting HR teams skip manual paperwork.
Types of MPF Schemes in Hong Kong
The MPF system offers choices to fit different industries and company setups. Hong Kong has three main types of MPF schemes:
| Type of MPF Scheme | Ideal For | Key Features |
| Master Trust Scheme | SMEs and individuals | Open to all employers, employees, and self-employed persons. Pooled contributions for collective investment. Cost-effective for small to medium-sized businesses. |
| Employer-Sponsored Scheme | Large corporations or corporate groups | Exclusively for employees of a single employer or its subsidiaries. Allows customized investment choices and administration. |
| Industry Scheme | High-mobility industries (e.g., F&B, retail, construction) | Designed for casual or short-term employees. Employees can remain under the same scheme even when changing employers within the same industry. |
1. Master Trust Scheme
The Master Trust Scheme stands as the most popular MPF structure in Hong Kong. It enables various employers, employees, and self-employed people to combine contributions under a single scheme. This method leads to cost savings, cutting down management fees and boosting investment chances.
Small and medium-sized businesses find it ideal, as it offers flexibility and easy management through payroll systems that work with MPF contribution tracking.
2. Employer-Sponsored Scheme
Big companies or corporate groups with multiple subsidiaries often choose this scheme. It limits membership to employees within the group letting companies customize contribution rules, benefits, and investment funds.
Because it needs more resources, it suits organizations with steady long-term staff.
3. Industry Scheme
The Industry Scheme serves industries with high employees turnover, like construction, food & beverage, and retail. Companies can hire short-term or temporary employees (for less than 60 days) without needing to sign them up again if they switch to another employer in the same registered industry.
This ongoing coverage cuts down on paperwork and gives steady MPF protection to part-time or temporary employees.
Pro Tip: In sectors with lots of turnover, using a cloud HRMS with MPF automation helps keep track of sign-ups and payments across different locations and franchises.
Learn More: Unveiling The Secrets Of MPF
How to Enroll Employees in an MPF Scheme in Hong Kong
Hong Kong employers must sign up eligible employees for an MPF scheme within 60 days of their start date — often called the trial period.
Here’s how to sign up employees:
Step 1 – Give Out the MPF Signup Form
Hand the employee the right signup form from your picked MPF trustee. The employee needs to fill in:
- Personal details (like name HKID how to reach them)
- Which investment funds they want (their mix of choices)
- A certificate saying where they pay taxes (to check if they pay taxes in Hong Kong)
Step 2 – Submit Forms to the Trustee
After completion, the employer needs to give the enrollment form to the chosen MPF trustee to open the employee’s MPF account.
If the employee doesn’t fill out or return the form within 60 days, the law requires the employer to submit it — even if it’s not complete — to follow the rules.
Step 3 – Start MPF Contributions
Once enrolled, both employer and employee must pay 5% of the employee’s relevant income each month. The total contribution has a limit of HK$3,000 (HK$1,500 from each side).
Companies need to send contributions to the trustee by the 10th day of each month. Payments that come in late might result in extra charges or fines.
Companies must sign up eligible employees for an MPF plan within 60 days after they start working and pay 5% of their income each month.
Common Mistakes Companies Should Avoid
- Not meeting the 60-day signup deadline
- Sending contributions late
- Not telling employees about their investment choices
- Forgetting to let the trustee know when a employee leaves
Using a system that handles payroll and HR tasks cuts down on these mistakes by linking attendance, pay, and MPF info right away.
The Role of Payroll Software in MPF Management
Manual MPF management takes up a lot of time for businesses with big or spread-out teams. A cutting-edge HRMS platform like Info-Tech HRMS can:
- Figure out MPF contributions on its own
- Create monthly reports and files for staying in line with rules
- Keep employee records up-to-date with trustees
- Help with online submissions and make MPF forms easier
When businesses make MPF processes digital, they get better at following rules being correct, and getting things done quickly.
Final Thoughts
It’s key for every employer in Hong Kong to grasp the types of MPF schemes and how to sign up for them. Picking the right scheme helps businesses follow the law, makes HR work simpler, and backs employees’ money plans for the future.
Info-Tech’s all-in-one HRMS has an impact on MPF enrollment automation, contribution monitoring, and payroll rule adherence — allowing your HR staff to concentrate on expansion, not red tape.
Make your MPF compliance automatic now. Get in touch with Info-Tech Hong Kong to receive a no-cost demo and tailored advice.
Frequently Asked Questions:
What are the three types of MPF schemes in Hong Kong?
Master Trust, Employer-Sponsored, and Industry Schemes — each suits different company and employee needs.
How long does an employer have to enroll employees in MPF?
Employers must sign up eligible employees within 60 calendar days from when they start working.
Who oversees MPF schemes in Hong Kong?
The Mandatory Provident Fund Schemes Authority (MPFA) watches over all MPF activities and trustees.
How much do employers and employees pay into MPF?
Both put in 5% of the employee’s relevant income each month up to a total limit of HK$3,000.
What occurs if an employer fails to meet the MPF deadline?
Delayed payments can result in extra charges, fines, and potential legal steps by the MPFA.
