What is the Mandatory Provident Fund (MPF) ?



Modified on: Tue, 23 Sep, 2025 at 9:02 PM

TABLE OF CONTENTS


The Mandatory Provident Fund (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 are legally required to:

  • Register eligible employees under an MPF scheme.
  • Make regular contributions to the scheme.

Failure to comply can result in criminal liability and fines, as enforced by Hong Kong’s MPF regulations.

Voluntary Contributions and Vesting

In addition to mandatory contributions, some employers may offer voluntary contributions to enhance retirement benefits. These contributions are subject to a vesting scale, which determines how much of the employer’s voluntary contributions an employee is entitled to keep based on their length of service.

This is in line with the standard MPF vesting scale:

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%

Horizons, as the legal employer, may withdraw voluntary MPF contributions if the desdignated contact period is less than three years. This means that if the corresponding portion of the employer’s voluntary MPF contribution has not been vested, it can be withdrawn. 

The final reconciliation of these withdrawn funds will be handled directly between Horizons and the World Economic Forum.

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