Is Hong Kong MPF mandatory?
Is Hong Kong MPF mandatory?
The system is mandatory for all employees in Hong Kong who have an employment contract of 60 days or more and applies also to the self-employed between ages 18 and 65. Employees and self-employed are required to contribute 5% of their earnings to their MPF fund.
Who has to pay MPF in Hong Kong?
aged 18 to 64, unless exempt under the MPFSO, are covered by the MPF System. European Commission in Hong Kong; ✧ domestic employees; and ✧ self-employed hawkers. Employees who are employed for less than 60 days, excluding casual employees as defined under the MPFSO^, are also exempt from joining an MPF scheme.
When can I withdraw MPF Hong Kong?
In general, you can access and withdraw your MPF benefits upon retiring at the age of 65. Early withdrawal is allowed under specific circumstances, including early retirement at the age of 60 and permanent departure from Hong Kong.
How much should I pay for MPF?
How to calculate contributions? Employees and employers are both required to make mandatory contributions of 5% of the employee’s relevant income into the employee’s MPF account, subject to the minimum and maximum relevant income levels.
How do I withdraw money from MPF HK?
Required documents for early withdrawal of MPF
- Early retirement. Identity document (e.g. HKID card)
- Permanent departure from Hong Kong. Identity document (e.g. HKID card)
- Total incapacity. Identity document (e.g. HKID card)
- Terminal illness. Identity document (e.g. HKID card)
- Small balance.
How much is MPF in Hong Kong?
Monthly paid employees
|Monthly Relevant Income||Employer’s Mandatory Contribution||Employee’s Mandatory Contribution|
|Less than $7,100||Relevant income x 5%||No contribution is required|
|$7,100 to $30,000||Relevant income x 5%||Relevant income x 5%|
|More than $30,000||$1,500||$1,500|
Who should pay MPF?
Employees and employers are both required to make mandatory contributions of 5% of the employee’s relevant income into the employee’s MPF account, subject to the minimum and maximum relevant income levels. Employers must make mandatory contributions for their employees with their own funds.
Who needs MPF?
employees and self-employed persons who are under 18 or over 65 years of age. domestic employees. self-employed hawkers. people covered by statutory pension or provident fund schemes, such as civil servants and subsidized or grant school teachers.
How do you calculate MPF?
To calculate MPF, multiply the shipment value by 0.3464%. For example, MPF on a shipment valued greater than $2,500 USD but less than $7,400 USD will be assessed at the minimum fee of $26.79. The maximum MPF per shipment is $519.76 (shipments valued at $144,000 USD or more will be assessed the maximum MPF).
What are the employee contribution rules under Hong Kong MPF regulations?
What are the employee contribution rules under the Hong Kong MPF regulations? Employees do not face as many compliance obligations as their employers do. However, it is vital for employees to ensure that they make the regular mandatory contribution of 5% of their relevant income to their relevant scheme as mentioned above.
How to set up an MPF account in Hong Kong?
Setting up an MPF account is a simple process. Hong Kong’s Mandatory Provident Fund Schemes Authority (“MPFA”) maintains a list of MPF Approved Trustees which employers may consider.
What are mandatory provident funds in Hong Kong?
Mandatory Provident Fund (“MPF”) are compulsory retirement schemes / pension funds that are created by the Hong Kong government and are provided by approved private organisations. MPF’s are a key aspect in the management of a Hong Kong company and its staff.
When to withdraw your MPF and tax when you leave Hong Kong?
However, it is also possible to go into early retirement at 60 years old. Individuals can get their MPF money back should they decide to permanently leave Hong Kong and declare as foreigners. As it was briefly mentioned above, it is possible to go into early retirement and start receiving a pension as early as 60.