PrepLicense: HK MPF · Study Notes · Chapter 1

MPF Chapter 1: Introduction to MPF System

This chapter introduces the historical background, legislative intent, scope of coverage and positioning of the MPF system within Hong Kong's three-pillar retirement protection framework.

1. Legislative Background of the MPF System

The MPF system commenced on 1 December 2000 under the Mandatory Provident Fund Schemes Ordinance (Cap. 485). Its legislative purpose is to provide basic retirement protection for Hong Kong employees, addressing population ageing and sharing public fiscal pressure.

2. The Three-Pillar Retirement Framework

Under the World Bank framework adopted in Hong Kong: Pillar 1 covers social security such as CSSA; Pillar 2 is the mandatory private retirement scheme (MPF); Pillar 3 is voluntary individual savings and insurance. MPF is the core of Pillar 2.

3. MPF Coverage

Employees aged 18 to 64 and self-employed persons must enrol in an MPF scheme upon 60 days of continuous employment. Exempt categories include domestic helpers, self-employed hawkers and certain short-term overseas workers.

4. Contribution Structure Overview

Employees and employers each contribute 5% of relevant income, subject to minimum and maximum relevant income levels (specific figures are periodically revised by MPFA). Self-employed persons contribute on their own behalf.

5. MPF and ORSO Relationship

Occupational Retirement Schemes (ORSO) existing before MPF may apply for exemption to continue providing retirement protection, subject to MPFA-recognised conditions.

6. Regulatory Objectives of the MPF System

Ensure trustees properly manage scheme assets, employers contribute on time, and intermediaries observe professional conduct — all to protect members' retirement interests.

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本應用為獨立學習工具，與強制性公積金計劃管理局（MPFA）及職業訓練局（VTC）無關，亦未獲其認可。