On $18,000 a month, after MPF, how much can you actually save?
Enter your salary to calculate MPF and take-home pay, then split it into needs, wants and savings.
Take-home after MPF
How to split it?
Savings: % (100% minus the two above)
How are MPF and take-home pay calculated?
Monthly-paid employees contribute 5% of their relevant income to MPF, and the employer contributes another 5%. Relevant income means basic pay plus commission, bonuses and so on, within these limits:
- Earning under $7,100 a month: you don't contribute, but your employer still pays 5%
- Earning $7,100 to $30,000: contribution = monthly income × 5%
- Earning over $30,000: contributions are based on $30,000, so each side pays at most $1,500 a month
Example: a $18,000 monthly salary
| Item | Monthly |
|---|---|
| Your MPF contribution (5%) | $900 |
| Take-home pay | $17,100 |
| Needs (50%) | $8,550 |
| Wants (30%) | $5,130 |
| Savings (20%) | $3,420 ($41,040 a year) |
Frequently asked questions
If I earn under $7,100 a month, do I need to contribute to MPF?
No. If a monthly-paid employee's relevant income is under $7,100, the employee doesn't contribute, but the employer must still contribute 5% of relevant income.
How does MPF work if I earn over $30,000 a month?
Mandatory contributions are calculated on $30,000, so the employee and employer each contribute at most $1,500 a month. Income above that needs no mandatory contribution.
When can I withdraw the MPF my employer pays?
Both employer and employee mandatory contributions go into your MPF account and can generally be withdrawn at age 65, except in statutory cases such as early retirement at 60, permanent departure from Hong Kong, total incapacity or terminal illness. MPFA announcements prevail.
Are voluntary MPF contributions tax-deductible?
Only if paid into a Tax Deductible Voluntary Contributions (TVC) account. TVC and qualifying deferred annuity premiums share a combined deduction cap of $60,000 a year (MPFA, 2026-27 year of assessment). Ordinary voluntary contributions are not deductible, and TVC can generally only be withdrawn at 65.
Do I have to follow 50/30/20?
No. It is only a starting point: 50% needs, 30% wants, 20% savings. With high rents in Hong Kong, many people's needs take more than half, so try 60/20/20 or 70/20/10. What matters most is saving a fixed amount every month.
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