How to Calculate Mandatory MPF Contributions

Understanding how to calculate MPF contributions is crucial for accurate payroll processing and regulatory compliance in Hong Kong.

Standard Monthly MPF Contributions

Both the employer and the employee contribute 5% of the employee’s relevant income to an MPF scheme. Contributions are subject to minimum and maximum income thresholds:

Example:
If an employee earns HK$50,000 per month:

• Employee contribution = HK$1,500 (capped)

• Employer contribution = HK$1,500 (capped)

Calculating First Contributions for New Joiners

When a new employee joins, their first MPF contribution may be prorated based on their start date and payroll cycle. To calculate this:

1. Open the HSBC First Contribution Calculator: First Contribution Calculator

2. Select the payroll frequency and employment start date, then click Next.

3. Enter the employee’s relevant income for each payroll period and click Calculate.

4. The tool will display a detailed breakdown for the first 60 days of mandatory contributions.

Calculating Last Contributions for Resigned Employees

When an employee leaves the company, their last MPF contribution must be calculated up to their final working day. To calculate this:

1. Go to the HSBC Last Contribution Calculator: Last Contribution Calculator

2. Select the payroll frequency and Last date of employment, then click Next.

3. Enter the employee’s relevant income for the final payroll period and click Calculate.

4. The tool will display the amount of the last mandatory contributions for both employer and employee.