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Enoch Yiu

The electronic platform of the Mandatory Provident Fund (eMPF) will cut administration fees for 378 investment funds by more than 21 per cent from April 1, the pension regulator said on Tuesday, adding that this will achieve its cost-saving target of HK$50 billion (US$6.4 billion) in less than 10 years.
Financial Secretary Paul Chan Mo-po approved the reduction, which would lower administration costs from 0.37 per cent to 0.29 per cent of assets under management, representing a 21.6 per cent fee cut for all 4.8 million MPF scheme members, the Mandatory Provident Fund Schemes Authority (MPFA) said in a statement.
MPFA chairwoman Ayesha Macpherson Lau said the fee cut would deliver higher savings for members.
“The original estimate of HK$30 billion to HK$40 billion in administrative cost savings over 10 years of operation [of the eMPF] has now been increased to HK$50 billion and accelerated to less than 10 years,” Lau said, reiterating the revised forecast she made in December.
Rolled out in June 2024, the eMPF serves as a centralised platform replacing the separate systems used by the MPF’s 12 trustees. It allows trustees, as well as the city’s 350,000 employers and 4.8 million members, to manage HK$1.63 trillion in assets through a single system accessible via smartphones, tablets and desktop computers.

Digitisation has already driven down costs. The administration rate fell from 0.58 per cent before the platform’s launch to 0.37 per cent today. The further reduction reflects fees charged by the eMPF at half the rate previously levied by the trustees.
“The digital usage rate of eMPF in the past 22 months has exceeded expectations,” Lau said. “Together with economies of scale and the growth in MPF assets, this has not only realised the policy intent of launching the eMPF, but also surpassed the initially projected level and pace of fee reduction.”
Initially, the MPFA expected it would take 10 years after the eMPF was fully implemented to reduce administration fees from 0.58 per cent to 0.2 to 0.25 per cent, but Lau said in December that the target would be reached within five years.
The fee cut would encourage more MPF members to make voluntary additional contributions to their MPF accounts, said Kenrick Chung, chief corporate solutions officer at Bay Insurance Brokers in Hong Kong.
Established in 2000, the MPF is a compulsory retirement scheme. It collects monthly contributions from employers and employees, each at 5 per cent of a worker’s monthly salary, or up to HK$3,000 a month. Employees can choose to invest their contributions in different investment funds and can make additional contributions.
“After the fee cut, the administration fee will drop down to 0.29 per cent, which is far lower than normal mutual funds at 1 per cent to 3 per cent or even higher,” he said.
“This will enhance the attractiveness of the MPF funds as an investment vehicle for the public who just want to make some simple investments to prepare for their retirement.”
Strong investment gains and contributions lifted total MPF assets to an all-time high of HK$1.63 trillion in the first two months of 2026, averaging HK$340,216 per member, according to MPF Ratings, an independent consultancy that tracks the scheme’s performance. The 378 investment funds recorded HK$71.1 billion in profits during the period, after gaining HK$260 billion in 2025 as a whole.
However, MPF Ratings chairman Francis Chung warned of volatility ahead, citing the US-Israel war against Iran that began at the end of last month. The Hang Seng Index fell 7 per cent over the past three weeks and is down 3 per cent this year.
However, Kenrick Chung said the recent market retreat presented a good opportunity for investors to enter the market by investing in high-quality stocks or funds.
“The global stock markets on Tuesday have turned better after US President Donald Trump said the United States was in talks to end the war,” he said. “If the Middle East conflict ends, the market is expected to go up again.”


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Mandatory Provident Fund (MPF)

Hong Kong’s eMPF to cut fees by 21.6% from April, saving US$6.4 billion in 10 years

Some 4.8 million MPF scheme members will benefit from the fee cut. Photo: Sun Yeung

The eMPF serves as a centralised platform replacing the separate systems used by the MPF’s 12 trustees. Photo: Handout

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People walk through Central during the lunch hour on January 30, 2026. Photo: Karma Lo

Asian stock markets were dragged down by the conflict in the Middle East on Wednesday. Photo: Jelly Tse

Can Hong Kong’s 4.8 million MPF members repeat record gains in Year of the Horse?

People walk during lunch hour in Central, Hong Kong. In the previous Year of the Horse in 2014, MPF members earned 2.2 per cent, while in 2002 they lost 0.4 per cent. Photo: Karma Lo

MPF assets totalled HK$1.59 trillion at the end of January. Photo: Enoch Yiu

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The Mandatory Provident Fund’s total asset grew by HK$290 billion, or 20 per cent, from HK$1.29 trillion at the end of 2024. Photo: SCMP

The eMPF mobile app, a central electronic platform for managing Mandatory Provident Fund accounts in Hong Kong. Photo: Handout

Hong Kong’s eMPF to hit fee-cut target 5 years early, saving US$6.4 billion

A key advantage of the eMPF is cost savings from digitisation, says Ayesha Macpherson Lau. Photo: Edmond So

For every HK$100 in the MPF, the cost saving will turn it into HK$115 for the long term, according to Ayesha Macpherson Lau. Photo: Sun Yeung

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The fee cut, which lowers administration costs from 0.37 per cent to 0.29 per cent, has been approved by Financial Secretary Paul Chan


The fee cut, which lowers administration costs from 0.37 per cent to 0.29 per cent, has been approved by Financial Secretary Paul Chan.


Hong Kong’s eMPF to cut fees by 21.6% from April, saving US$6.4 billion in 10 years

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}The fee cut, which lowers administration costs from 0.37 per cent to 0.29 per cent, has been approved by Financial Secretary Paul Chan

The fee cut, which lowers administration costs from 0.37 per cent to 0.29 per cent, has been approved by Financial Secretary Paul Chan