MPF Contribution Calculator
Enter monthly salary to compute mandatory MPF contributions: employee and employer each 5%, with a minimum relevant income of HK$7,100 and a cap at HK$30,000 — compared with the US FICA payroll-tax mechanism.
Input Data
Results
At a glance:The U.S. FICA payroll tax withholds Social Security and Medicare at a fixed salary rate with a cap. Hong Kong has no FICA, but the Mandatory Provident Fund (MPF) is similar: employee and employer each contribute 5% of relevant income, the employee exempt below HK$7,100/month and capped at HK$30,000. This calculator computes monthly and annual MPF so you see the retirement savings withheld from pay and paid extra by the employer.
Formula
Employee MPF = min(max(relevant income, 7,100), 30,000) × 5%.
Employer MPF = same as employee contribution (each 5%).
Total = employee + employer; annual = monthly × 12.
$$I_{rel} = \min(\text{Salary},\, 30{,}000)$$$$C_{employer} = I_{rel}\times r,\quad C_{employee} = \begin{cases} 0 & \text{Salary} < 7{,}100 \\ I_{rel}\times r & \text{otherwise} \end{cases}$$How to Use
- Enter the monthly income.
- View the employee and employer MPF, monthly and annual totals.
Employee and employer MPF at different monthly income (HK$)
| Monthly income | Employee 5% | Employer 5% | Total monthly |
|---|---|---|---|
| 6,000 | 0.00 | 300.00 | 300.00 |
| 10,000 | 500.00 | 500.00 | 1,000.00 |
| 30,000 | 1,500.00 | 1,500.00 | 3,000.00 |
| 50,000 | 1,500.00 | 1,500.00 | 3,000.00 |
Below HK$7,100 the employee is exempt but the employer still pays 5%; above HK$30,000 the contribution is capped at HK$1,500 each side per month.
Case Studies
Case 1: Mid-income employee
Monthly income HK$20,000. Relevant income is within the band, so employee MPF = 20,000 × 5% = HK$1,000; employer also HK$1,000.
Total monthly MPF = HK$2,000; annual = HK$24,000.
The employee sees HK$1,000 withheld from pay, but the employer adds another HK$1,000 — total retirement saving HK$24,000 a year, double the employee's own cut.
Case 2: Cap and exemption
Two staff: A monthly income HK$6,000 (below HK$7,100), B HK$50,000 (above cap).
A: employee exempt (HK$0), employer still HK$300 (6,000×5%); B: both sides capped at HK$1,500 each (30,000×5%), total HK$3,000/month.
Interpretation: the lower earner is relieved while the employer still contributes; the higher earner's contribution is capped, so extra salary above HK$30,000 is not MPF-taxed — similar to FICA's Social Security wage-base cap.
FAQ
What is the U.S. FICA comparison for?
FICA is the U.S. payroll insurance tax funding Social Security and Medicare, withheld at a fixed rate with a cap. Hong Kong has no FICA; MPF is the closest local analogy — both split a fixed-percent contribution between employee and employer. This calculator uses the Hong Kong MPF (5% each side, with cap) as the working model.
Who pays MPF, employee or employer?
Both — employee and employer each contribute 5% of relevant income. So the total retirement contribution is double the employee's share.
What are the MPF thresholds?
Monthly income below HK$7,100: the employee is exempt (still pays 0), but the employer still contributes 5%. Above HK$30,000: the contribution is based on HK$30,000, i.e. capped, so both sides pay at most HK$1,500/month.
Is MPF the same as income tax?
No. MPF is a mandatory retirement savings contribution; salaries tax is a separate tax on income. They are calculated and withheld differently.
Does MPF have a wage base cap like FICA's Social Security?
Yes, in spirit. The U.S. Social Security portion stops above an annual wage base; Hong Kong MPF caps relevant income at HK$30,000/month, so both sides contribute at most HK$1,500 each per month. Medicare (U.S.) has no cap, but MPF has a single cap for both tiers.
Related Tools
References
This calculator's content is reviewed by our Licensed Wealth & Tax Advisory team. Results are for reference only; please refer to the relevant authorities for the official figures.