MPF 101 — Hong Kong
How the Mandatory Provident Fund works, fund types, and what to watch for.
For information only. Not advice, recommendation, or solicitation. Data has not been independently verified — always verify directly with the authorised intermediary or fund provider before making decisions.
Contributions
Both employer and employee contribute 5% of relevant income, subject to minimum and maximum levels set by the MPFA. Self-employed contribute on their own.
Fund types
Equity, Mixed Assets, Bond, MPF Conservative, Money Market, and the Default Investment Strategy (DIS) — Core Accumulation Fund and Age 65 Plus Fund.
Default Investment Strategy (DIS)
If you do not select funds, your money goes into the DIS — a globally diversified glide path that de-risks as you age. Fees are capped (currently 0.75% management fee + 0.20% recurrent out-of-pocket expenses).
Fees matter — a lot
A 1% difference in annual fees can erode 20%+ of your final balance over a 30-year career. Always check the Fund Expense Ratio (FER).
Employee Choice Arrangement (ECA)
You can transfer the employee mandatory portion of your accrued benefits to another MPF trustee once per calendar year.