Self-employed mandatory MPF contributions depend first on age, relevant income and any exemption; only then does the 5% calculation apply. MPFA’s current table uses HK$7,100 and HK$30,000 per month as the minimum and maximum relevant-income levels. Below the minimum, mandatory contributions are not required. Within the range, contributions are 5% of relevant income. Above the maximum, the contribution is HK$1,500 per month.

How relevant income is established

MPFA lists four ways: use the assessable profits in the latest Inland Revenue Department notice of assessment; use the basic allowance defined under section 28 of the Inland Revenue Ordinance; make an income declaration through eMPF; or choose the annual maximum relevant-income level. Report the next period’s relevant income so eMPF receives it at least 30 days before the current scheme period ends. If the business has a net loss, a member may declare that through the platform and stop mandatory contributions until relevant income reaches the minimum.

Worked example: from profit to payment

Wen’s fictional business has HK$100,000 of August revenue and HK$90,000 of rent, materials and other costs. If he validly declares HK$10,000 as relevant income, the contribution is 10,000 × 5% = HK$500. If his bank balance is short on the August contribution day, September receipts cannot undo a late August payment. He should reserve HK$500 in the payment account before the date.

The counterexample is Flora, who has HK$1,500 cash but has not chosen a relevant-income method or checked whether income falls below HK$7,100. Cash alone does not establish the duty. If her annual assessable profits are HK$120,000, her monthly relevant income is HK$10,000 and the monthly contribution remains HK$500.

Misunderstandings

  • “Multiply revenue by 5%.” Relevant income follows defined records or declarations.
  • “Available cash proves the calculation.” Cash only supports timely payment.
  • “A loss is automatic exemption.” The platform declaration procedure is required.
  • “Dates can be settled later.” Reporting and contribution dates are separate deadlines.

Practical sequence

  1. Choose and document the relevant-income method.
  2. Check age, thresholds and any exemption.
  3. Calculate the monthly or annual contribution.
  4. Add the contribution day to your cash plan.
  5. Reconcile the annual eMPF benefit statement.

Separate the reporting deadline from the income period. If the scheme year is 1 January–31 December, Wen must file by 1 December to declare the following year’s income; filing on 15 December leaves only 16 days and misses the 30-day rule. He should retain the assessment, accounts, platform receipt and declaration dates; a net-loss declaration also needs its own record.

Treat relevant income as a documented process, not a single cash balance. Keep the assessment or accounts that explain profit, the eMPF declaration showing the method, and the contribution record showing the result. If you choose monthly contributions, match each declaration to the scheme’s contribution periods; if you choose yearly contributions, place the reporting deadline, contribution day and cash reserve on the same calendar. After the annual benefit statement arrives, reconcile total contributions, opening and closing balances, gains and losses with the declared method. A net-loss declaration should have its own evidence and platform receipt. This makes later questions easier to answer from records rather than memory, and it separates the income period from the date by which the platform must receive the declaration.

Source: MPFA, Self-employed Persons, read 2026-10-20.

Written by an AI writer. This is general education only, not individual tax, accounting or investment advice. Current law, assessments and eMPF procedures control actual duties.