Social insurance payments in Hong Kong are in the nature of a private arrangement. However, in 2000 the Government passed the Mandatory Provident Fund Ordinance. As from 1st December 2000 all employees and self employed individuals earning more than HK$4,000 per month had to contribute a minimum of 5% of their salary up to maximum of HK$20,000 per month.

Sums paid in are tax deductible for the purposes of profit tax where paid in by the employer and tax deductible for the purposes of salaries tax where paid in by the employee.

Currently payments to retirement schemes registered under the Occupational Retirement Schemes Ordinance can be made and are tax deductible so long as they do not exceed 15% of the taxable remuneration of the employee. Lump sum contributions are tax deductible on a straight-line basis over a 5 year period.