Common sense of "MPF" necessary for immigrating to Hong Kong

With the release of the results of the selection of outstanding talents in Hong Kong in September, 86 I also received many inquiries about the convenience of living, studying and working in Hong Kong, and some of them were asked. Hong Kong MPF? Perhaps most of my friends don't know much about the MPF in Hong Kong, so I have specially sorted out several main requirements of the MPF and shared them with you. 1. What is an MPF?

Mandatory provident fund in Hong Kong (hereinafter referred to as? MPF? ), in short, it is a retirement savings plan. Hong Kong employees make regular contributions to the MPF Fund according to their monthly salary, and when they retire, they can get a savings to meet their retirement needs. The system was implemented in June 5438+February 2000. At present, 80% of the employed population has enjoyed the MPF scheme or other retirement schemes.

2. Who needs to pay the MPF?

The MPF system is career-oriented. Except for some exempted persons, employees and self-employed persons aged 18 to 64 who have been employed continuously for 60 days or more, whether full-time or part-time, are required to join the MPF scheme.

3. How does the MPF system work?

Step 1: Select Fund

Under the MPF system, employers choose MPF trustees to join one or more MPF schemes, while employees choose MPF from the schemes chosen by employers.

Step 2: Pay into the fund account.

Employers and employees make regular mandatory contributions and deposit them into employees' MPF accounts.

Step 3: Invest the contributions in the fund selected by the employees.

The specific process can refer to the following figure:

4. What are the optional funds in the MPF scheme?

Most MPF schemes provide the following funds:

A. money market funds

Generally invest in high-quality short-term interest-bearing securities (generally within 90 days) to earn higher income than savings deposits. This kind of fund has low market risk.

B. Guarantee Fund

The guarantee fund provides some form of guarantee for plan members, generally including principal guarantee or minimum return guarantee, which has low risk, but the guarantor may not be able to provide a guaranteed rate of return.

C. securities funds

Securities funds are used to invest in bonds or debt instruments issued by governments, public institutions, banks, commercial institutions or multilateral national institutions (such as the World Bank), and the returns mainly come from interest income of bonds or profits earned from buying and selling bonds in the market. Low risk.

D. mixed asset funds

Mixed asset funds mainly invest in bonds and stocks. Different mixed asset funds have different risks, mainly depending on the proportion of stocks and bonds, and the risks are between bond funds and stock funds.

E. equity funds

Equity funds mainly invest in stocks traded on approved stock exchanges, aiming at obtaining higher returns through capital appreciation of stocks, and the risks are higher than other types of funds.

F. Index funds

The only investment goal of index funds is to track the performance of a single market. A typical index fund is passively managed, that is, the constituent stocks of the fund will be bought and sold according to the proportion of the constituent stocks of the reference index, so that the performance of the fund is similar to that of the reference market index.

5. How to determine the amount of MPF contributions?

Contributions to the MPF system are basically calculated at 65,438+00% of employees' monthly income, that is, employers and employees are required to contribute 5% each, and self-employed people are also required to contribute 5% of their income. However, there are minimum and maximum payment limits. At present, there are mainly the following three types of contributions:

The income is HK$ 30,000 or above, and the total monthly contribution is HK$ 3,000, with employees and employers each contributing1500;

Income is between 7 100 Hong Kong dollars? Between HK$ 30,000 and HK$ 30,000, the total monthly contribution is calculated as 65,438+00% of the income, and the employer and the employee each bear 5%;

If the income is 7 100 or less, employees do not need to contribute, and employers still need to contribute 5% of employees' income.