Income varies, MPF is still calculated: the self-employed 5% rate and HK$1,500 cap

A self-employed person's income may differ from month to month, but the MPF formula is fairly fixed: mandatory contributions are 5% of relevant income, subject to a minimum and a maximum.

According to the Mandatory Provident Fund Schemes Authority (MPFA) page "Self-employed Persons" (last reviewed on 30 April 2026; consulted by this publication on 17 October 2026), self-employed persons must make mandatory contributions of 5% of their relevant income. No contribution is required if monthly relevant income is below HK$7,100; the part above HK$30,000 is not counted, so mandatory contributions are at most HK$1,500 a month. All figures below are as of October 2026 and are subject to the latest MPFA pages.

Four numbers that set the whole formula

• Contribution rate: 5% of relevant income.
• Minimum relevant income: HK$7,100 a month (HK$85,200 a year); no contribution is required below this level.
• Maximum relevant income: HK$30,000 a month (HK$360,000 a year); the excess is not counted for contributions.
• Cap on mandatory contributions: HK$1,500 a month (HK$18,000 a year).

The HK$1,500 cap is not new. In a press release issued on 30 May 2014, the MPFA announced that the maximum relevant income would rise from HK$25,000 to HK$30,000 a month, with the maximum mandatory contribution rising in step to HK$1,500 a month, effective from 1 June 2014. For self-employed persons, the cap is HK$1,500 a month or HK$18,000 a year.

Examples: one formula, four months

The income figures below are purely arithmetical examples. They do not come from the MPFA and do not address anyone's personal circumstances. The results are this publication's own calculations at 5%; actual amounts depend on the MPFA pages and the details of your scheme.

• Example 1: relevant income of HK$6,000 a month is below the HK$7,100 minimum, so no mandatory contribution is required.
• Example 2: relevant income of HK$8,000 a month; 8,000 × 5% = HK$400.
• Example 3: relevant income of HK$20,000 a month; 20,000 × 5% = HK$1,000.
• Example 4: relevant income of HK$45,000 a month; only HK$30,000 counts, and 30,000 × 5% = HK$1,500, the monthly cap.

However high the income, mandatory contributions are at most HK$1,500 a month; if income is below HK$7,100, no contribution is required.

Relevant income is not a figure to guess

The formula is simple; the difficulty is where "relevant income" comes from. The MPFA page lists four ways of determining it:

1. the assessable profits shown on the most recent notice of assessment from the Inland Revenue Department;
2. the basic allowance under section 28 of the Inland Revenue Ordinance;
3. an income declaration made to the eMPF Platform;
4. the maximum relevant income level for the year.

The MPFA's FAQ page also explains that relevant income is the combined income of all businesses for the period, with both profits and losses counted.

Timing matters too. The MPFA page says self-employed persons should report their relevant income for the next period to the eMPF Platform at least 30 days before the end of each financial period of the scheme. Financial year dates differ between schemes, so check the exact dates with your scheme.

Monthly or yearly: it depends on your cash flow

Self-employed persons can choose to contribute monthly or yearly. Monthly contributions follow the contribution day chosen when joining a scheme; yearly contributions must be paid on or before the last day of the scheme's financial year.

Here is another example: suppose relevant income for the year is HK$240,000. At 5%, the mandatory contribution for the year is HK$12,000. Below HK$85,200 of relevant income for the year, no contribution is required; above HK$360,000, the yearly contribution is still capped at HK$18,000. This too is only an arithmetical example, not an MPFA figure.

Low income does not mean no registration

Not having to contribute and not having to join a scheme are two different things. The MPFA's FAQ page states that self-employed persons aged 18 to 64 must join an MPF scheme regardless of the amount of their relevant income, unless they are exempt persons, and must enrol within 60 days of becoming self-employed. Who counts as an exempt person should be checked directly with MPFA information or a professional adviser.

The MPFA page also covers what to do when a business records a net loss: a self-employed person may make a declaration to the eMPF Platform and stop contributing until relevant income returns to the minimum level. Beyond mandatory contributions, self-employed persons may also make voluntary contributions.

Two reminders before you start calculating

First, the HK$7,100, HK$30,000 and HK$1,500 figures in this article are based on the MPFA pages as of October 2026; if these levels are adjusted later, the latest MPFA announcements prevail. Second, this article offers general information only and is not tax, financial or retirement planning advice for any individual; on how to make declarations and whether to contribute monthly or yearly, consult a licensed professional.

Income is hard to predict, but the way contributions are calculated is clearly set out. Work out how your relevant income is determined and when the reporting deadline falls, then apply 5%, keeping the HK$7,100 minimum and the HK$30,000 maximum in mind.

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.