The administration fees charged by eMPF have been reduced from 0.37% to 0.29% with effect from 1 April 2026. This reduction has led to a corresponding decrease in the aggregate management fees of constituent funds of MPF schemes.
The Mandatory Provident Fund Schemes Authority (MPFA) estimates that this fee reduction will achieve its cost-saving target of HK$50 billion in less than 10 years, surpassing its initial estimate of HK$30 to HK$40 billion in administrative cost savings over 10 years of operation of the eMPF platform.
Launched in June 2024, the eMPF platform serves as a centralised system, consolidating the previously separate administrative systems operated by the MPF scheme trustees. The platform enables trustees, alongside Hong Kong’s approximately 350,000 employers and 4.8 million scheme members, to manage administrative work in the sector’s HK$1.63 trillion in assets through a unified electronic system, accessible via smartphones, tablets, and desktop computers.
The digitisation initiative of eMPF has been a key driver in reducing scheme administrative costs. The administration fee rate has been substantially reduced since onboarding of MPF schemes onto the eMPF platform, and the latest fee reduction is anticipated to yield further cost-savings to scheme members.
We have been assisting MPF scheme providers on the revision to the MPF schemes offering documents to reflect the fee reduction. Notices informing scheme members of the fee reduction have been published and disseminated.
For further information, please contact:
Ming Chiu Li, Partner, Deacons
mingchiu.li@deacons.com
