MPF System

Mandatory Contributions

Mandatory contributions made for an employee are fully and immediately vested in the employee once they are paid into his/her MPF account. Any investment return derived from the mandatory contributions is also fully and immediately vested in that employee.

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SEPs under the MPF System are required to make mandatory contributions equal to 5% of their relevant income to an MPF scheme at a regular interval. Contributions are subject to the minimum and maximum relevant income levels.

Contribution day

SEPs can opt to make contributions on a monthly or yearly basis on or before the contribution day.

The current minimum and maximum relevant income levels are $7,100 per month (or $85,200 per year) and $30,000 per month (or $360,000 per year) respectively.

Learn more about the past minimum and maximum relevant income levels for SEPs

Relevant Income	Mandatory Contributions
Less than $7,100/month (or $85,200/year)	Not required
$7,100 to $30,000/month (or $85,200 to $360,000/year)	Relevant income x 5%
More than $30,000/month (or $360,000/year)	$1,500/month (or $18,000/year)

SEPs 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.

If sustaining a loss in business

SEP may make a written statement to the trustee declaring that the business has sustained a net loss and discontinue the payment of mandatory contributions until the relevant income meets the minimum relevant income level.

Reporting date

SEPs should report their relevant income for the next financial period to their trustees at least 30 days before the end of each financial period of the scheme.

SEPs can opt to make mandatory contributions on a monthly or yearly basis.

Monthly contributions

SEPs should notify their trustees in writing, and specify their monthly contribution day on their enrolment forms.

If an SEP specifies the last day of each month as the contribution day, the contribution period will be from the first day to the last day of a month. If the SEP chooses the 20th as the contribution day, the contribution period will be from the 21st of each month to the 20th of the following month.

Yearly contributions

The contribution day is the last day of a financial year of an MPF scheme. SEPs should make their contributions on or before the last day of the financial year of the scheme.

As the financial year of individual MPF schemes may vary, SEPs should inform their trustees of their preferred frequency for making contributions when they enrol in the scheme.

If the contribution day falls on a Saturday, a public holiday or a gale/black rainstorm warning day, the contribution day will be extended to the next day which is not a Saturday, a public holiday or a gale/black rainstorm warning day.

MPF trustees are required to provide SEPs with an annual benefit statement within three months after the end of each financial period of the scheme.

Annual benefit Statement

The statement must include: total amount of contributions paid by the SEP, the opening and closing balance of the account, and gains and losses associated with the MPF account for the year.