MPF System


Importance of MPF

As Hong Kong's population is ageing rapidly, the future workforce will have to face the challenge of having to support a much larger number of retirees.

Source: Census and Statistics Department, HKSAR Government

Development of the MPF System

The MPF System is set up to help Hong Kong’s workforce save up for their retirement. It is an important part of Hong Kong’s retirement protection framework.

The Mandatory Provident Fund Schemes Ordinance (MPFSO) was enacted in 1995 and supplemented by subsidiary legislation in 1998, 1999 and 2000 respectively. The MPF System was launched in December 2000.

World Bank’s multi-pillar retirement protection framework


Source: Holzmann, R., & Hinz, R. (2005). Old age income support in the 21st century: An international perspective on pension systems and reform. Washington, DC: World Bank.


As the second pillar of Hong Kong’s retirement protection framework, MPF complements the other pillarsand provides the workforce with basic retirement protection.


1 With the exception of Pillar 1 which is not applicable in Hong Kong.

Coverage of retirement protection

Before the implementation of the MPF System, only about one-third of Hong Kong’s workforce had some form of retirement protection.


With the implementation of the MPF System, around 85% of the workforce is covered under the retirement schemes listed below:


  • MPF schemes
  • Occupational Retirement Schemes (ORSO schemes)
  • Statutory pension or provident fund schemes (e.g. for civil servants or teachers of grant / subsidized schools)