How MPF mandatory contributions are worked out
Under the Mandatory Provident Fund (MPF) System, the employer and the employee each pay 5% of the employee's relevant income into the employee's MPF account. Two income levels change the result:
- Minimum relevant income level – $7,100 a month. Below this the employee pays nothing, but the employer still pays 5%.
- Maximum relevant income level – $30,000 a month. Above this both contributions are capped at $1,500 a month (5% of $30,000).
| Monthly relevant income | Employer | Employee |
|---|---|---|
| Less than $7,100 | Income × 5% | Nothing |
| $7,100 to $30,000 | Income × 5% | Income × 5% |
| More than $30,000 | $1,500 | $1,500 |
Paid daily, weekly or another period?
The levels are based on $280 a day (minimum) and $1,000 a day (maximum), multiplied by the number of days in the wage period. A weekly wage period therefore has a minimum of $1,960 and a maximum of $7,000.
Self-employed persons
Self-employed persons pay 5% of their relevant income, monthly or yearly. Below $7,100 a month ($85,200 a year) no contribution is required; above $30,000 a month ($360,000 a year) the contribution is capped at $1,500 a month ($18,000 a year).
Worked examples
Monthly salary $25,000: employer 5% × $25,000 = $1,250; employee $1,250; total $2,500 a month.
Monthly salary $40,000: above the $30,000 maximum, so employer $1,500 and employee $1,500.
Monthly salary $6,500: below the $7,100 minimum, so the employee pays nothing and the employer pays 5% × $6,500 = $325.
Weekly wage $9,000: above the weekly maximum of $7,000, so each side pays 5% × $7,000 = $350.
Self-employed, $300,000 a year: 5% × $300,000 = $15,000 for the year.
MPF and your salaries tax
The mandatory contributions you pay as an employee or self-employed person are tax-deductible, up to $18,000 per year of assessment. If you have two jobs, the combined deduction is still capped at $18,000. Our salaries tax calculator applies this cap for you.
What this calculator does not cover
- Voluntary contributions and tax-deductible voluntary contributions (TVC).
- The contribution holiday for new employees (no employee contribution for the first 30 days and the following incomplete wage period).
- Casual employees in Industry Schemes, which use a different method.
- Exempt persons (for example those under 18 or 65 and above).
Frequently asked questions
What is the MPF maximum contribution in 2026?
The maximum relevant income level is $30,000 a month, so the most an employer and an employee each pay is $1,500 a month. For self-employed persons the cap is $1,500 a month or $18,000 a year.
Do I contribute if I earn less than $7,100 a month?
No. The employee does not contribute below the minimum relevant income level, but the employer must still pay 5% of your relevant income.
Is my bonus included?
Yes. Bonuses, commission, leave pay and cash allowances are all relevant income. Severance payments and long service payments are excluded.
When is the contribution due?
For monthly-paid employees, the contribution day is generally the 10th of the following month (for example, September's contributions are due by 10 October), moved to the next working day if it falls on a Saturday, public holiday or a typhoon/black rainstorm day.
How much MPF can I deduct from salaries tax?
Your own mandatory contributions, up to $18,000 per year of assessment.
Official sources
Every figure on this page was checked against these pages on 21 Oct 2026.