Coverage and Enrolment
- as a self-employed person, you have to enrol yourself in an MPF scheme and make mandatory contributions; and
- as an employee, your employer is required to enrol you in an MPF scheme and make mandatory contributions.
If you have entered into a contract for service but are not an employee of the company, you may be considered a self-employed person. Therefore, you are required to enrol yourself into an MPF scheme make contributions as a self-employed person.
If you have entered into a contract of employment with the company and have been employed as an employee for 60 days, the employer is required to enrol you in an MPF scheme and make contributions for you.
Self-employed persons can choose any registered MPF schemes. The following factors should be considered when choosing a scheme:
- types of funds available under the scheme;
- fees and charges payable under the scheme; and
- quality of customer service offered by the trustee of the scheme.
You can make use of the MPF Fund Platform and the Trustee Service Comparative Platform provided by MPFA to compare the investment objectives, fees, risks and performance of funds under different schemes, and the services offered by trustees.
Trustees are required to provide you with the following information:
- the requirements and information required to apply for scheme membership;
- the governing rules of the scheme; and
- the details of the scheme, including all the fees and charges payable under the scheme.
According to the requirements under Automatic Exchange of Financial Account Information (AEOI), all new MPF account holders are required to provide a self-certification (ie: declaration on whether the account holder is a tax resident outside Hong Kong). Without the self-certification, trustees will not be able to complete the account opening procedures.
Mandatory Contribution Amount
Less than $7,100
Less than $85,200
No contributions required
$7,100 - $30,000
$85,200 to $360,000
Relevant income x 5%
More than $30,000
More than $360,000
$1,500 per month or $18,000 per year
Self-employed persons can determine their relevant income by one of the following ways:
- taking the assessable profits stated in their most recent notice of assessment issued by the Inland Revenue Department as their relevant income;
- taking the basic allowance as defined under section 28 of the Inland Revenue Ordinance as their relevant income;
- making an income declaration to their trustees; or
- taking the maximum relevant income level per year as their relevant income.
SEP can opt to make contributions on a monthly or yearly basis. You should notify your trustee of your choice when you first enrol in an MPF scheme.
If you choose to make contributions on a monthly basis, you should specify the monthly contribution day to your trustee and make contributions on or before that day each month.
If you choose to make contributions on a yearly basis, you must make contributions to the trustee on or before the last day of the financial year of the scheme.
If you wish to change your contribution frequency (yearly or monthly), please notify the trustee at least 30 days before the last day of the financial year of the scheme.
Cessation of Self-employment
You may choose to:
- transfer your MPF to your contribution account under the MPF scheme of your new employer; or
- transfer your MPF to an existing personal account in any schemes (including your original MPF scheme).