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Labour Issues

Chamber Submissions

2026/03/13

Response to the Review of Minimum and Maximum Levels of Relevant Income for MPF Contributions

13 March 2026

 

Mr Cheng Yan-chee
Managing Director
Mandatory Provident Fund Schemes Authority
Level 12, Tower 1, The Millennity
98 How Ming Street
Kwun Tong
Hong Kong

 

Dear Mr Cheng,

 

The Hong Kong General Chamber of Commerce welcomes the opportunity to express our views on the review for the 2022-2026 cycle regarding the minimum and maximum levels of relevant income (Min/Max RI levels) for Mandatory Provident Fund (MPF) contributions.

 

Given the abolition of the MPF offsetting arrangement, which came into effect in May 2025, and the fragile economy, it is important to strike a balance in employers’ financial obligations when determining the changes. We are concerned that an increase in the Max RI will impose additional financial burdens on companies, particularly small and medium-sized enterprises. The Mandatory Provident Fund Authority (MPFA) should ensure the appropriate balance of sustaining Hong Kong's economic growth and competitiveness. Therefore, we strongly recommend keeping the Max RI unchanged at the current level of HK$30,000 in order to maintain business sustainability during this challenging period. We are open to a review of the Max RI when the economic environment is more conducive.

 

Furthermore, we support the reassessment of the Min RI. While an increment does not have an immediate financial impact on employers, it carries long-term implications for employees. By raising the Min RI, more low-income employees would be exempt from MPF contributions. This adjustment helps alleviate the immediate financial pressure on these employees, offering relief to a broader segment of the workforce. However, it is important to recognize that this may result in reduced retirement protection for the affected employees, which could, in the long run, shift a greater share of their retirement welfare onto the Government.

 

We hope you will take into account our views in your deliberations and we appreciate continue dialogue with the business community to find a balanced solution that meets the needs of both employers and employees.

 

Yours sincerely,

 

 

 

Patrick Yeung
CEO

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