In light of Talenox’s recent expansion to Hong Kong, we’ve decided to create another free online tool for everyone (see the end of the article for more calculators we’ve built). We present to you…
Hong Kong’s First Contribution and Monthly Contribution MPF Calculator.
Why we built the MPF calculator
The reason we spent so much time building something that we refuse to charge for is because we realised that many businesses new to the Hong Kong market (like us), find it a hassle to go through the Mandatory Provident Fund (MPF) documentation every month when calculating their company’s payroll.
Even though the concept of MPF is similar to Singapore’s CPF, the contribution tiers for employers and employees are calculated quite differently. There are mandatory and voluntary contributions, as well as different mandatory provident fund schemes. To make things easier for you, we built this calculator to take into account the most essential things a new company needs to know.
- Most new companies employ the Master Trust Scheme, so we built our calculator on that premise.
- Most new companies need to calculate mandatory MPF contributions for both employers and employees, so we went with that.
- Most new companies employ new local employees and thus need to calculate First Contribution, so we took care of that.
- Most new companies want to know important dates such as the MPF enrolment deadline for their employees, so we’ve calculated those for you.
Who benefits from the MPF calculator
- Existing Hong Kong businesses
- New Hong Kong businesses and expatriates
- Hong Kong Citizens & Permanent Residents age 18-65
- HR managers / executives who manage multiple countries’ payroll, including Hong Kong
How to use the MPF calculator
With a working internet connection, simply access the calculator online at talenox.com.hk/mpf-calculator.
Depending on your needs, select ‘Monthly Contribution’ or ‘First Contribution’ (for new employees in your company).
Input the employee’s ‘Date of Employment’ in order to get important dates such as the deadline for MPF enrolment, the deadline for First Contribution, when your contribution as an employer starts, and when your employee’s contribution starts (note that your new employee has a “contribution holiday” and does not need to contribute MPF for the first 30 days upon enrolment in the job).
State the ‘Relevant Income’ for the month. For First Contribution calculations, you will need to state more than one relevant income (including forecasted ones), since we will need to calculate the employee’s “contribution holiday”.
Click the magical blue button on the right: ‘Calculate MPF Contribution’. You’ll get the calculated amounts.
I believe you’re ready to give the calculator a try. Feel free to leave us your comments below.
If your company is based in Singapore, I think you’ll find these other calculators useful:
Singapore CPF Contribution Calculator
Singapore Foreign Worker Levy (FWL) Calculator
Singapore Prorated Salary / Salary for Incomplete Month Calculator
In addition, I think this article may be relevant to your new business in Hong Kong:
Hong Kong Visa Types for Foreign Entrepreneurs and Startups
At Talenox, our vision is to design systems for people first. We pride ourselves in creating products that are delightful to use. Since our inception, we have continuously striven to make Human Resource functions such as running payroll and managing employee leave less painful. With an easy-to-use, self-serve platform, anyone — even non-HR professionals — can use our online software to run their business more efficiently. Talenox charges a flat rate of HKD$35 per month per active headcount for access to all apps. Want to try things out first? Sure, we have a 30-day trial.