Hong Kong MPF: Earners on HK$10,500 or Less May Stop Contributing Under MPFA Income Proposal

A monthly income of HK$10,500 could become the new dividing line for whether Hong Kong workers have to contribute to the Mandatory Provident Fund (MPF). According to Human Resources Online on 1 April 2026, the Mandatory Provident Fund Schemes Authority (MPFA) has proposed raising the MPF minimum relevant income from HK$7,100 to HK$10,500 a month, and the maximum relevant income from HK$30,000 to HK$40,000.

To be clear, this is still a proposal and has not taken effect. The report uses conditional wording ("if the proposal is approved") and says the MPFA aims to submit a report and recommendations to the government by mid-2026. In a Legislative Council reply on 18 March 2026, the government said it would consider the MPFA's report comprehensively and carefully before making a decision. The reply made no commitment on timing or an effective date.

Two thresholds decide how much you pay

The MPF's relevant income thresholds do two things. Employees and self-employed people whose income is below the minimum level do not have to make mandatory contributions, and income above the maximum level is not counted for contributions.

The current minimum of HK$7,100 and maximum of HK$30,000 took effect in 2013 and 2014 respectively, and have not been adjusted for 12 to 13 years. Under the rules, the MPFA must review these two levels at least once in each cycle of no more than four years, and the review now under way covers the 2022 to 2026 cycle. The MPFA says the review will take into account employment income data, retirement needs, the impact on employees and employers, the labour market and the economy as a whole.

Minimum raised to HK$10,500: low earners would no longer contribute

If the proposal is implemented, employees earning HK$10,500 or less a month would not have to make mandatory contributions. Human Resources Online reports that about 78,000 employees would no longer need to contribute. This figure appears in only one media report so far and is not backed by official data.

Maximum raised to HK$40,000: up to HK$500 more a month

Mandatory contributions are 5% of relevant income. Raising the maximum from HK$30,000 to HK$40,000 would lift the monthly cap on mandatory contributions for both employee and employer from HK$1,500 to HK$2,000, so each would pay up to HK$500 more a month.

In the worked examples below, low earners take home more but stop building up their own share of contributions, while high earners take home less each month and see higher contributions into their MPF accounts.

Worked examples at four monthly salaries

The examples below are our own calculations at a 5% contribution rate. They assume the proposal is implemented exactly as reported, count mandatory contributions only and exclude voluntary ones, and do not constitute personal financial advice.

• Monthly salary of HK$9,000: the employee currently contributes HK$450 a month. Under the proposal there would be no contribution, so take-home pay rises by HK$450 a month, or HK$5,400 a year, but that money would no longer go into the employee's MPF account.
• Monthly salary of HK$15,000: HK$750 a month both now and under the proposal, so take-home pay and contributions are unchanged. Anyone earning between HK$10,500 and HK$30,000 a month is unaffected under the proposal.
• Monthly salary of HK$35,000: the current contribution is capped at HK$1,500 a month on HK$30,000. Under the proposal it would be HK$1,750, so take-home pay falls by HK$250 a month. The employer's share is also calculated at 5% and would rise from HK$1,500 to HK$1,750 a month.
• Monthly salary of HK$40,000 or more: the contribution rises from HK$1,500 to HK$2,000 a month and take-home pay falls by HK$500. With the employer's extra HK$500, the account receives HK$1,000 more a month, or HK$12,000 a year.

Employers and workers see it differently

In a blog post on 8 March 2026, the MPFA chairman said that in early February the MPFA had already talked with more than 30 stakeholder groups, including labour groups, chambers of commerce, employer representatives and professional bodies. Most agreed that the two levels should reflect price and wage increases over the past decade or so.

Opinions diverge on the specific figures, however. According to reports, the MPFA consulted the Labour Advisory Board on the proposal on 31 March 2026. The labour side supported an adjustment and suggested the maximum income could rise gradually to HK$60,000 under a mechanism, while the employer side was concerned that the proposal would add to operating costs and burdens.

No official effective date yet

This article draws on information up to October 2026. The latest public information used is the report of April 2026, and we could not verify whether the MPFA has since submitted its report to the government. The figures of HK$10,500 and HK$40,000 come from media reports, and the government's reply of 18 March did not commit to any effective date. Whether the proposal is eventually approved, and whether the figures change, depends on the MPFA's report and the government's decision.

Readers earning close to HK$10,500 or above HK$30,000 a month may want to run the examples above against their own payslip, then watch for the latest announcements from the MPFA and government press releases. For personal retirement arrangements, consult a licensed professional.

Prices and details correct as of October 2026

This article is general information, not investment, tax or insurance advice. Everyone’s circumstances differ; consult a licensed professional before making decisions.