Monthly paid employees
Employers and employees each make mandatory contributions of 5% of the employee's relevant income, subject to the minimum and maximum levels, which for monthly paid employees are currently HK$7,100 and HK$30,000[1]. The employer pays its share from its own funds and deducts the employee's share from pay[1].
| Monthly relevant income | Employer | Employee |
|---|---|---|
| Less than HK$7,100 | Relevant income x 5% | No contribution required |
| HK$7,100 to HK$30,000 | Relevant income x 5% | Relevant income x 5% |
| More than HK$30,000 | HK$1,500 | HK$1,500 |
Three salaries make the bands concrete. On HK$6,000 a month the employer pays HK$300 and the employee nothing. On HK$20,000 each pays HK$1,000. On HK$45,000 each pays HK$1,500, the cap[1]. If pay moves from month to month within the band, the contributions move with it, because they are always 5% of that period's relevant income[2].
Daily, weekly and other wage periods
For an employee paid daily, weekly or bi-monthly, the employer first works out the levels for the wage period from the daily minimum and maximum relevant income levels of HK$280 and HK$1,000[1]. A weekly paid employee therefore has a weekly minimum of HK$1,960 (HK$280 x 7 days) and maximum of HK$7,000 (HK$1,000 x 7 days)[1].
| Relevant income in the wage period | Employer | Employee |
|---|---|---|
| Less than HK$280 x days in the period | Relevant income x 5% | No contribution required |
| Between the minimum and maximum levels | Relevant income x 5% | Relevant income x 5% |
| More than HK$1,000 x days in the period | Maximum level x 5% | Maximum level x 5% |
Casual employees in an Industry Scheme use a fixed daily scale instead, from HK$10 by the employer alone below HK$280 a day, up to HK$50 each at HK$950 a day or more; the top band includes the daily maximum level of HK$1,000, so the contributions stay at HK$50 each above it[3].
What counts as relevant income
Relevant income is all monetary payments paid or payable by an employer to an employee: wages, salary, leave pay, fees, commissions, bonuses, gratuities, perquisites and allowances. Severance payments and long service payments under the Employment Ordinance are excluded[1].
The MPFA's examples settle common cases[1]:
- Counted: 13th month pay, discretionary and performance bonuses, end-of-contract gratuities, cash allowances, internship allowances, paid leave, commission, cash car subsidies, and tips collected by the employer and then distributed.
- Not counted: reimbursement of expenses needed to do the job, free transport passes, free use of a car, meal vouchers, share options, dividends, payment in lieu of notice, and tips paid directly to staff without the employer's involvement.
Non-monetary benefits such as airline tickets are not relevant income[2], and periodical payments under the Employees' Compensation Ordinance are not either[2].
When there is no income in a period
An employee with no relevant income for a contribution period, on unpaid leave for example, still goes on the remittance statement, with HK$0 as relevant income or as the eMPF Platform instructs[1].
The levels change
The MPFA publishes the adjustments made to the minimum and maximum relevant income levels over the years[1], so payroll software and spreadsheets should read the levels from one setting rather than carry HK$7,100 and HK$30,000 in every formula. Check the MPFA page at the start of each payroll year.
Rules, forms and figures can change, and the official pages listed below are the authority wherever this summary differs from them.