Information Centre

New employees must be enrolled in an MPF scheme by their employers to arrange MPF mandatory contributions. For self-employed persons (SEPs), while there is no employer to handle MPF matters for them, they are also required to enrol themselves in an MPF scheme and open an SEP account within the first 60 days of becoming self-employed. 

SEPs can select a trustee and an MPF scheme which suit their retirement investment goals by themselves based on their personal situation and needs. Unlike general employees, SEPs can opt to make contributions on a monthly or yearly basis. If SEPs choose to make monthly contributions, they must specify in writing the monthly contribution day to the trustee. If SEPs choose to make contribution on a yearly basis, they must make contributions to the trustee on or before the last day of the financial year of the scheme.

SEPs under the MPF System are required to make mandatory contributions equal to 5% of their relevant income to an MPF scheme at regular intervals. Contributions are subject to the minimum and maximum relevant income levels. They can determine their relevant income in 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 trustee; or
• taking the maximum relevant income level per year as their relevant income.

If the business is sustaining a loss, the 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.

If SEPs become employed, they must notify the MPF trustee in writing of their cessation of self-employment status before the next contribution period and make the last contribution by calculating the mandatory contribution by pro-rating the amount they have to pay based on the number of days they were self-employed during the contribution period.