Statutory Deductions and Contributions

Employees do not pay tax during the year through payroll; however, employees and employers who are covered by the Mandatory Provident Fund System are each required to make regular mandatory contributions calculated at 5% of the employee’s relevant income to an MPF scheme, subject to the minimum and maximum relevant income levels.

The contributions to the MPF scheme or recognised retirement scheme by the employee, up to a maximum amount, are tax deductible.