MPF Compliance Checklist: MPF, IRD, and Labour Ordinance Rules for Growing Hong Kong Companies

MPF compliance is the piece most growing Hong Kong companies get wrong first — wrong enrollment timing, wrong contribution cap, or wrong assumption about offsetting. Layer on annual IRD filings and Employment Ordinance leave/severance rules, and a 10-person company can quietly accumulate real exposure. Here's a fast checklist across all three.

Most founders treat MPF, IRD filings, and the Labour Ordinance as three separate admin tasks. In reality, they feed into each other, and MPF compliance is usually where the first gap appears — because the rules changed twice in the past year.

What are the key MPF compliance rules for employers?

MPF compliance starts with the 60-day enrolment rule, separate from the 30-day contribution holiday during which no deduction is taken from pay. The standard mandatory contribution is 5% of relevant income from both employer and employee, capped at HK$1,500/month once income hits HK$30,000. Most trustees have now migrated to the eMPF Platform, and missing a contribution deadline by even a day triggers an automatic 5% surcharge. The MPFA is also reviewing proposals to raise the income thresholds for the first time in over a decade.

What does the IRD require for annual employer filing?

Every employer — even with zero active staff — must file Form BIR56A and an IR56B per reportable employee within one month of the IRD issuing the annual Employer's Return (usually early April). Beyond that, file IR56E for new hires and IR56G at least one month before an employee departs Hong Kong for good, withholding final pay until the IRD issues a Letter of Release. Payroll and MPF records both need to be kept for at least seven years.

How do recent Labour Ordinance changes affect MPF strategy?

Three changes matter most. MPF offsetting was abolished from 1 May 2025, so severance and long service payments for service after that date must be paid fully in cash — no MPF contribution can reduce that liability. The "468" rule replaced "418" from 18 January 2026, so part-time staff working 68+ hours over four weeks now qualify for statutory leave and benefits, which can also affect their MPF status. And Hong Kong now has 15 statutory holidays, with minimum wage rising to HK$43.10/hour from 1 May 2026.

What are the key deadlines and penalties at a glance?

Area	Deadline	Risk if Missed
MPF enrolment	Within 60 days of hire	Civil/criminal penalties
MPF contribution (5%, capped HK$1,500)	By the 10th monthly	5% surcharge + fines
IRD BIR56A + IR56B	Within 1 month of issue	Fine up to HK$10,000
Labour Ordinance severance (post-2025)	On termination	Civil claim

The Bottom Line

MPF compliance, IRD filings, and Labour Ordinance entitlements rarely break on their own — they break at the seams between them, like a part-time hire who now qualifies for benefits nobody flagged, or a severance calculation built on outdated offsetting rules. A quick quarterly check of MPF records against payroll and current leave rules catches most of this before it becomes a liability. If you'd rather hand that off, this is exactly what HR Plus's HR outsourcing service is built to manage end to end.