What are the mandatory employer burdens in Hong Kong?



Modified on: Mon, 17 Nov, 2025 at 12:43 PM

TABLE OF CONTENTS


Employers in Hong Kong are legally required to fulfill several obligations to ensure compliance with labor laws and safeguard employee welfare. These include contributions to the Mandatory Provident Fund (MPF) and securing Employees' Compensation Insurance.



1. Mandatory Provident Fund (MPF)

The MPF is a retirement protection system established by the Hong Kong government. It ensures basic economic security for employees after retirement through mandatory contributions from both employers and employees.


Employer Responsibilities

Employers must:

  • Register eligible employees under an MPF scheme.
  • Make regular contributions to the scheme.
  • Ensure contributions are deposited before the due date set by the MPF Authority (MPFA).

Failure to comply may result in criminal liability and fines.


MPF Enrollment 

Starting 3 November 2025, the Mandatory Provident Fund (MPF) enrollment process has transitioned to the eMPF Platform, a centralized digital system managed by the Mandatory Provident Fund Schemes Authority (MPFA). This platform streamlines MPF administration, allowing both employers and employees to complete enrollment online.

How Enrollment Works

  • During the first month of onboarding with Horizons, we will initaite the employee enrollment in the eMPF Platform. An an email or SMS invitation from eMPF will be sent.
  • Employees will need to log in to the eMPF web portal or mobile app to complete their part of the enrollment. Identity verification can be done via:
    • iAM Smart app, or
    • eMPF Mobile App using e-Identity Verification.
  • After completing these steps, the MPF account will be set up under the scheme selected by the employer.
     

Timeline

  • Employers are legally required to enroll employees in an MPF scheme within 60 calendar days of their first day of employment.
  • Contributions start after the employee has been employed for 60 days. Both employer and employee contribute 5% of relevant income (subject to statutory minimum and maximum income levels).

Key Points for Employees

  • They will receive the eMPF invitation about one month after onboarding, ensuring enrollment is completed before the 60-day deadline.
  • They must register promptly when they receive the invitation to avoid delays in setting up the MPF account.
  • Once enrolled, they can manage their MPF account, view balances, and make voluntary contributions through the eMPF platform.

 


Who Is Covered?

All employees aged 18 to 65 must participate in the MPF scheme unless exempted by law. Once an employee reaches 65, they may withdraw their contributions.


Contribution Details

  • Mandatory Contributions: Both employer and employee contribute 5% of the employee’s relevant income, subject to:

    • Minimum salary: HK$7,100
    • Maximum salary: HK$30,000
    • Employer’s monthly contribution: HK$355 to HK$1,500

  • Voluntary Contributions: Employers and employees may agree to contribute additional amounts. These are not capped and offer flexibility in retirement planning.


Contribution Holiday

New employees are entitled to a 30-day contribution holiday for mandatory contributions. For example:

  • If employment starts on June 5, the holiday runs until July 4.
  • Contributions are then withheld and included in the August payroll.

Voluntary contributions are not subject to this holiday.


Vesting of Voluntary Contributions

Voluntary employer contributions may be subject to a vesting scale, which determines how much an employee retains based on their length of service:


Years of ServiceVested Percentage
Less than 3 years0%
3–4 years30%
4–5 years40%
5–6 years50%
6–7 years60%
7–8 years70%
8–9 years80%
9–10 years90%
More than 10 years100%

Employers like Horizons may withdraw unvested voluntary contributions if the designated contact period is less than three years. Final reconciliation of these funds is handled directly between Horizons and the relevant organization.


2. Employees' Compensation Insurance

Under the Employees' Compensation Ordinance, employers must purchase insurance to cover work-related injuries.


Who Is Covered?

All employees working under a contract of employment or apprenticeship are covered, including:

  • Full-time and part-time workers
  • Domestic helpers
  • Agricultural workers
  • Seafarers on registered vessels


Premium Calculation

The insurance premium is approximately 0.422% of the employee’s earnings. It is invoiced at the start of the insurance period, with adjustments made based on actual circumstances.

Failure to secure this insurance can result in fines and legal liability for compensation.



Summary

These employer obligations are essential for:

  • Ensuring legal compliance
  • Protecting employees’ financial and physical well-being
  • Supporting long-term retirement planning

Employers must stay informed and proactive in meeting these requirements to avoid penalties and foster a compliant, supportive workplace.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article



Related Articles