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Mandatory Provident Fund

CATEGORY

Human Resources

Definition

The Mandatory Provident Fund (MPF) is a compulsory retirement savings scheme implemented in Hong Kong to provide retirement protection and financial security for employees. Under the MPF system, both employers and employees are required to contribute a percentage of the employee's income to designated MPF funds, managed by approved trustees and investment managers. The MPF contributions are invested in various asset classes such as stocks, bonds, and mutual funds to generate returns and accumulate retirement savings over the course of an employee's career. The MPF scheme aims to ensure adequate retirement income for Hong Kong residents and promote long-term financial planning and retirement preparedness in the workforce.

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