MPF Full Portability Phase One: A Guide for New Employees and HR
MPF Full Portability Phase One: A Guide for New Employees and HR
The Hong Kong Government has announced that Phase One of MPF Full Portability will take effect on21 December 2026. The key change is that eligible new employees may transfer the full amount of MPF benefits accrued from employer mandatory contributions during their current employment to a personal account in an MPF scheme of their own choice.
This does not mean that every employee can transfer all MPF benefits on the same date. It also does not mean that employers can stop making MPF contributions. For employees, the first question is whether they fall within the Phase One scope. For HR and employers, the practical priority is to prepare employee FAQs, onboarding materials and an internal enquiry workflow.
This guide explains the main Phase One arrangements from a Hong Kong employer and HR perspective, together with practical preparation steps for businesses.
What is MPF Full Portability Phase One?
Employees already have certain transfer options for managing their MPF benefits. The key policy change under Phase One Full Portability is that the arrangement will further coverMPF benefits accrued from employer mandatory contributions during the current employment.
According to the Hong Kong Government News announcement published on 16 October 2026, the Mandatory Provident Fund Schemes (General) (Amendment) Regulation 2025 will come into operation on 21 December 2026. Eligible new employees may transfer the relevant benefits from the MPF scheme chosen by their employer to a personal account in an MPF scheme of their own choice.
In practical terms, the policy gives specified new employees more choice over the transfer of benefits derived from employer mandatory contributions. It does not remove the employer's MPF contribution responsibilities.
The arrangement is governed by the Mandatory Provident Fund Schemes Ordinance (Cap. 485) and the relevant amending regulation. Eligibility and transfer procedures for individual cases should be checked against the latest legislation, official announcements and the governing rules of the relevant MPF scheme.
Which new employees are covered by Phase One?
Phase One mainly applies tonew employees whose employment commenced on or after 1 May 2025.
When checking whether an employee may fall within the Phase One scope, HR should not look only at the employee's current position, seniority or whether the employee has recently changed jobs. The actual employment commencement date should be checked first. Businesses can retain a clear record in the employee master file and onboarding documents so that the information is available when employees raise questions.
Information HR can check first
• The employee's actual employment commencement date;
• the effective date stated in the employment contract or appointment documentation;
• the employee's MPF scheme and contribution account information;
• whether the relevant contributions relate to the current employment; and
• whether the employee's individual eligibility or transfer procedure needs to be confirmed with the MPF scheme provider.
The date1 May 2025is an important dividing date for Phase One. Businesses should not assume that every employee who remains employed on 21 December 2026 automatically falls within the Phase One scope.
Which MPF benefits may be transferred?
An eligible new employee may transfer:
The full amount of MPF benefits accrued from employer mandatory contributions during the current employment.
These benefits may be transferred from the MPF scheme chosen by the employer to a personal account in an MPF scheme selected by the employee.
When explaining the policy, HR should avoid saying that “all MPF balances can be transferred immediately”. An employee's MPF arrangements may involve contributions from different sources and different account structures. The actual scope and procedure should be checked against the applicable legislation, official guidance and the governing rules of the relevant scheme.
Points employees should note
• Phase One does not apply to all employees;
• the policy focuses on benefits derived from employer mandatory contributions during the current employment;
• choosing the MPF scheme to which benefits may be transferred is a personal decision for the employee to understand and make;
• HR should not replace an employee's own investment decision or provide personal investment advice about fund performance, returns or retirement planning; and
• questions about individual account information and the actual transfer process should be directed to the relevant MPF scheme provider or the MPFA.
How often can a transfer be made?
Under the announced arrangement, a transfer may generally be madeonce in each calendar year. More frequent transfers may be possible if permitted by the governing rules of the transferring MPF scheme.
HR should therefore avoid presenting “once a year” as an identical fixed process for every employee. An employee FAQ can explain the general arrangement, while reminding employees to check the actual transfer frequency and application procedure under the relevant scheme rules.
Will MPF Full Portability change the employer's contribution responsibilities?
The commencement of Phase One Full Portability does not mean that employers can stop handling MPF contributions.
Employers will still need to handle employee enrolment, contributions, data updates and other employer responsibilities in accordance with the applicable MPF requirements and administrative procedures. An employee's possible right to transfer certain MPF benefits does not mean that the employer no longer needs to participate in an MPF scheme or handle contribution administration.
Businesses should also avoid assuming that they must immediately change their MPF scheme, Payroll system or entire contribution workflow without first checking the arrangements of the relevant service providers. A more practical approach is to understand the effect of the policy on employee communication, onboarding information and enquiry responsibilities, and then review internal workflows where necessary.
Four areas HR should prepare first
1. Check new employees' employment commencement dates
The first step is to identify employee records that may fall within the Phase One dividing date. HR can review the information with Payroll and the person responsible for MPF administration:
• Is the employee's actual employment commencement date recorded correctly?
• Do the onboarding documents, employee master file and Payroll records match?
• Which department is responsible for the new employee's MPF enrolment and contribution information?
• If an employee asks about eligibility, who will refer the question to the MPF scheme provider or the MPFA?
The purpose is not for HR to make a transfer decision on behalf of the employee. It is to ensure that the business has enough information to answer basic questions such as, “Could I fall within Phase One?”
2. Prepare an employee FAQ
After the policy takes effect, HR may receive questions such as:
• Am I covered by Phase One?
• Why is 1 May 2025 an important date?
• Which part of my MPF benefits may be transferred?
• Are employer mandatory contributions included?
• How many times can I transfer benefits in a calendar year?
• Should I ask HR, the MPF scheme provider or the MPFA?
• Do I need to choose another MPF scheme?
The FAQ should provide clear and limited explanations. It should not turn HR into a provider of personal investment advice. For questions about personal accounts, fund selection, investment risk or an actual transfer application, the FAQ can direct employees to the relevant official MPFA and scheme-provider channels.
3. Review onboarding and employee communication materials
Businesses can review whether the following materials need to be updated:
• new employee onboarding documents;
• the MPF section of the employee handbook;
• intranet FAQs;
• onboarding presentation slides;
• HR announcements; and
• employee enquiry and referral instructions.
Materials should not continue to oversimplify the position by saying that employees can only remain in the MPF scheme chosen by the employer. At the same time, businesses should not make commitments beyond the official announcement before detailed operational arrangements are confirmed—for example, promising a particular transfer date, transfer outcome or investment result.
4. Create an HR, Payroll and MPF enquiry workflow
Not every question arising from the policy should be handled by HR alone. A business can define in advance:
• which basic eligibility questions HR will answer;
• which contribution and data questions Payroll or Finance will handle;
• which account or transfer-process questions should be referred to the MPF scheme provider or the MPFA;
• how employee enquiries and the official information provided will be recorded; and
• how HR, Payroll, HRIS and outsourced service providers will keep their information aligned.
If Payroll or part of the HR administration is outsourced, the business should also document the division of responsibilities. Outsourcing administrative work does not mean that the business should lose control over employee communication, data checking or enquiry referrals.
Do employers need to change their MPF scheme immediately?
It would be premature to conclude that every business must change its MPF scheme simply because Phase One Full Portability is taking effect.
A practical first review can cover the following questions:
1. Which MPF scheme and administrative channels does the company currently use?
2. Which department is responsible for new employee information and MPF contributions?
3. If an employee asks about transferring benefits, who will provide the official information and make the referral?
4. Do the onboarding documents and employee FAQ accurately reflect the Phase One arrangement?
5. Are the records held by HR, Payroll and outsourced service providers consistent?
6. Should the HRIS or document-management workflow record the relevant employment date and enquiry history?
If the review shows that information is spread across different spreadsheets, responsibilities are unclear or only one employee understands the process, the business can first clarify the workflow and responsibilities. It can then assess whether HR system or other tool support is needed.
What is the difference between Phase One and Phase Two?
Phase One coversnew employees whose employment commenced on or after 1 May 2025.
For employees whose employment commenced before that date, the Government is currently preparing legislative proposals for Phase Two Full Portability. The Hong Kong Government News announcement states that the relevant amendment bill is scheduled to be introduced to the Legislative Council bymid-2027.
As at the date this article was checked, businesses should not describe Phase Two as already fully effective. They should also not automatically apply the Phase One arrangement to all existing employees. The eligibility scope, timetable and operational details for Phase Two should wait for further formal announcements from the Government and the MPFA.
Frequently asked questions for HR
Is an employee who started work on 1 May 2025 automatically eligible?
This is an important employment commencement date identified for Phase One. However, individual eligibility and the actual transfer procedure should still be checked against the applicable legislation, official announcements and the governing rules of the relevant MPF scheme. HR should not confirm every individual case based only on the date without checking the relevant source or provider.
Can an employee transfer benefits accrued from employer mandatory contributions?
Under Phase One, an eligible new employee may transfer the full amount of MPF benefits accrued from employer mandatory contributions during the current employment to a personal account in an MPF scheme of the employee's own choice. The actual application and operating procedure should follow the latest official information and the relevant scheme rules.
Does the employer need to stop making contributions or leave all MPF administration to employees?
No. An employee's choice to transfer benefits does not mean that the employer can stop fulfilling its MPF contribution and administrative responsibilities. The business should continue to handle the relevant work in accordance with the applicable requirements and provide employees with the correct official enquiry channels.
Can HR choose an MPF scheme for an employee?
HR can explain the company's process, the relevant employment date and official enquiry channels. HR should not make a personal investment choice on behalf of an employee or provide unauthorised advice about fund performance, returns or individual retirement planning.
Does the business need to change its Payroll or HR system immediately?
This cannot be concluded simply because Phase One is taking effect. The business should first understand the arrangements of the relevant MPF scheme provider and administrative channels, then review whether its HR, Payroll and employee-data workflows need updating. If the review identifies inconsistent data, unclear responsibilities or unrecorded enquiries, the business can plan workflow or system changes according to its actual needs.
How can Get More help employers prepare?
Phase One Full Portability is not only a policy update about employees' personal choices. It also gives businesses a reason to review HR communication, onboarding information and internal enquiry responsibilities.
Get More can support businesses with:
• reviewing the effect of MPF policy updates on HR and employee communication;
• organising new employee FAQs, onboarding materials and internal announcements;
• clarifying responsibilities between HR, Payroll, Finance and outsourced service providers;
• reviewing data workflows between the HRIS, Payroll and employee master file; and
• planning HR consultancy or HR system implementation support according to the business's needs.
Want to review your company's MPF policy communication, onboarding materials and HR／Payroll enquiry workflow? Contact Get More:
• 📞 Phone: (852) 2333 1090
• 📧 Email:HR@getmore.com.hk
• 💬 WhatsApp:9699 0665
Further reading
Disclaimer
This content is for general informational purposes only and does not constitute legal advice. For specific situations, please consult a qualified HR consultant or legal professional.
