To provide basic retirement benefits to Hong Kong's workforce, the Government of the Hong Kong Special Administrative Region (HKSAR) has implemented the MPF system. All employers and employees, including the self-employed (exclude exempt persons), must contribute to an MPF Scheme. All contributions must be managed by an authorised MPF provider to ensure that the Scheme is administered securely and professionally. In accordance with the Mandatory Provident Fund Schemes Ordinance, all employers must make mandatory contributions for all eligible employees in respect of relevant income earned by them commencing from December 2000.

MPF vs. ORSO

	MPF Schemes	ORSO Schemes
Features	MPF is mandatory for all employers and relevant employees.	ORSO is not mandatory and is only available subject to the employer's discretion.
Who is Covered?	All employees who have completed 60 days of service and are aged between 18 and 64. Up to age 64 for the self-employed.	Employees are usually eligible to join after probation, but this is subject to the employer's discretion.
Employers' Contributions	5% of relevant income, maximum $1,250. Voluntary contributions can be made.	Contributions determined by employer and there are no upper or lower limits.
Employee's Contribution	5% of relevant income. No contributions are required if monthly income is below $6,500. Maximum contribution is $1,250 for monthly income over $25,000. Voluntary contributions can be made.	Contributions determined by employer and there are no upper or lower limits.
Relevant Income	In the case of a relevant employee, any wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (including housing allowance or other housing benefit), expressed in monetary terms, paid or payable by an employer (directly or indirectly) to that relevant employee in consideration of his employment under that contract, but does not include severance payments or long service payments under the Employment Ordinance. In the case of a self-employed person, income of that person as ascertained in accordance with the regulations.	ORSO is generally based on basic salary.
Benefits	100% of contributions and investment returns are fully and immediately vested in the employees.	Accumulated contributions and investment returns are generally vested on the basis of years of service (e.g. 30% after 3 years, 50% after 5 years).
Transfer of Benefits when an Employee leaves	Employees may open a preserved account under the existing or another Master Trust Scheme and deposit all benefits in it OR transfer these benefits to the new MPF scheme participated in by their new employers.	Usually a one-time payment to the employee based on years served.
Withdrawal of Benefits	No withdrawal until attaining the retirement age of 65, except for those other conditions as stipulated by the law.	Employees may withdraw all benefits on leaving service, the benefits do not have to be retained in the scheme.
Can employers' contributions be used to offset long service or severance payments?	Yes	Yes