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MPFA Chairman Mrs Ayesha Macpherson Lau published her blog post on International Women’s Day (8 March), recognizing the valuable efforts and contributions of women in various social roles. She emphasized the importance of helping the working population plan their retirement protection. 

Mrs Lau noted that MPFA has implemented various measures to uphold and enhance the adequacy of MPF. One such measure involves reviewing at least once in every four‑year cycle of the minimum and maximum (min/max) income levels for mandatory MPF contributions and recommend appropriate adjustments according to the statutory mechanism. These two income levels define the calculation of MPF contribution:

• Employees and self-employed persons whose income is lower than the minimum level are exempt from making mandatory contributions (employers, however, are still required to make mandatory contributions for their employees), easing the financial burden on lower income employees.
• The maximum income level recognizes that MPF is intended to provide basic retirement protection for the working population. Therefore, mandatory contributions are not required for income exceeding the maximum income level.

The current min/max income levels are $7,100 and $30,000 per month respectively. These levels came into effect in 2013 and 2014 one after another, and have remained unchanged for 12 - 13 years. Mrs Lau pointed out that as the min/max income levels form the basis for calculating mandatory MPF contributions, the basic retirement protection provided by MPF will not be able to keep pace with the cost of living when there is a prolonged absence of adjustments.

MPFA is now conducting a review of the min/max income levels for the 2022–2026 cycle. In early February this year, more than 30 stakeholder groups, including labour organizations, chambers of commerce, employer representatives and professional bodies, were engaged to exchange views on the review. Among the opinions collected so far, there is a common view that the two income levels need to reflect the rise in prices and wages over the past 10 plus years. There is a call to raise the minimum income level to alleviate financial burden on low‑income employees, while also considering suitable upward adjustments to the mandatory contributions of employees whose wages exceed the current maximum income level to ensure MPF’s basic retirement protection function is not eroded.

MPFA will appropriately reflect and consolidate the views collected in the review report. In formulating its proposals, MPFA will holistically take into account income data, basic retirement protection needs, the impact on and affordability for both employees and employers, labour market conditions and the broader economic environment. The goal is to strike a balance among these various factors. MPFA aims to submit the review report and recommendations to the Government by the middle of this year.

Additionally, Mrs Lau noted an increasing trend among employers and employees to proactively make additional contributions to enhance retirement protection. The share of voluntary contributions in total MPF contributions rose to 25% last year, nearly doubling the share recorded a decade ago. Tax‑deductible voluntary contributions (TVC) have gained popularity, with cumulative contributions in TVC accounts reaching $14.1 billion as of the end of 2025. Mrs Lau encouraged employees to open a TVC account and make contribution before end of this month, which marks the end of the current tax assessment year, so as to enjoy a tax deduction of up to $60,000 per year while bolstering their retirement savings.

For the full version of the article, please visit the MPFA blog. The blog is available in Chinese only.

– Ends – 

8 March 2026