MPF portability phase 1 gives workers greater control

Eligible employees can transfer accrued benefits to a scheme of their choice.

Hong Kong will implement the first phase of Mandatory Provident Fund (MPF) full portability on 21 December, allowing eligible employees to transfer their accrued employer mandatory contributions to a scheme of their choice.

The change applies to employees whose current employment began on or after 1 May 2025.

They can transfer the entirety of their accrued benefits derived from their employer's mandatory contributions to a personal account under an MPF scheme of their choice once per calendar year, or more frequently if permitted under the transferring scheme's governing rules.

The Mandatory Provident Fund Schemes (General) (Amendment) Regulation 2025 will come into operation on that date, following a commencement notice published in the Government Gazette on 16 October.

Secretary for Financial Services and the Treasury Christopher Hui said the change would give new employees greater control over their MPF benefits, encourage more active investment management, and stimulate market competition, creating scope for fee reductions.

The Government is drafting legislative proposals for Phase Two, which will extend full portability to the remaining workforce.

The corresponding amendment bill is scheduled to be introduced to the Legislative Council by mid-2027.

The commencement notice will be tabled before the Legislative Council on 21 October for negative vetting.