MPF Employer Voluntary + TVC 2026 Calculator
Calculate your Hong Kong MPF employer voluntary contributions, employee TVC tax deductions (up to HK$60,000/yr), and annual tax savings. Source: mpfa.org.hk.
What Are MPF Voluntary Contributions and TVC?
Hong Kong's Mandatory Provident Fund (MPF) system requires both employers and employees to contribute 5% of relevant income each (capped at HK$1,500/month mandatory each). Beyond mandatory contributions, employers may make voluntary contributions, and employees can open a separate Tax Deductible Voluntary Contributions (TVC) account at any MPF trustee. TVC contributions are deductible up to HK$60,000 per year (HK$5,000/month) from assessable income for salaries tax purposes. Source: mpfa.org.hk. Last updated: May 2026.
How Employer Voluntary Contributions Work
Employer voluntary contributions are amounts above the 5% mandatory minimum that the employer agrees to pay into your MPF account under the employment contract. These are a salary benefit — they go into your MPF account but are not personally deductible for the employee. Vesting schedules typically apply: you may need to work a minimum number of years before you are entitled to retain employer voluntary contributions. Always check your employment contract for vesting terms.
TVC Tax Deduction Strategy for 2026
At the 15% standard salaries tax rate, the maximum annual TVC deduction of HK$60,000 saves HK$9,000 in tax. At the 17% marginal rate, savings reach HK$10,200/year. The effective cost of maxing out TVC is HK$50,000–HK$51,000 after tax savings, while HK$60,000 enters your retirement account. For employees expecting income above HK$400,000, TVC is one of the few effective tax-deferral tools available in Hong Kong. Source: mpfa.org.hk and Inland Revenue Department 2026 rates.
Frequently Asked Questions
What is the MPF TVC deduction cap for 2026?
The Tax Deductible Voluntary Contributions (TVC) deduction cap is HK$60,000 per year (HK$5,000 per month). Contributions above this cap are not tax deductible. Source: mpfa.org.hk.
Are employer voluntary contributions tax deductible for employees?
Employer voluntary contributions are not deductible for employees — they are a benefit from the employer. Employees can claim deductions for their own mandatory contributions and their own TVC up to HK$60,000/yr.
Can I withdraw TVC before retirement?
TVC can only be withdrawn upon reaching age 65 or under specific grounds (total incapacity, terminal illness, small balance, leaving Hong Kong permanently). Early withdrawal is not permitted for tax-advantaged TVC accounts.
How do employer voluntary contributions differ from mandatory contributions?
Mandatory contributions are 5% of relevant income (capped at HK$1,500/month). Employer voluntary contributions are any additional amounts above 5% that the employer chooses to contribute under the employment contract.
Where do I open a TVC account?
TVC accounts can be opened at any MPF approved trustee, which may be different from your employer's MPF scheme. This gives employees flexibility to choose their preferred fund options. See mpfa.org.hk for the list of approved trustees.