1. What is the Hong Kong Salary Calculator?

The Hong Kong Salary Calculator estimates net take-home pay after deducting Mandatory Provident Fund (MPF) contributions and income tax in Hong Kong. It provides a clear understanding of actual disposable income after statutory deductions.

2. How Does the Calculator Work?

The calculator uses the net pay equation:

Where:

• \( Gross\ Pay \) — Total salary before deductions (HKD)
• \( MPF \) — Mandatory Provident Fund contribution (HKD)
• \( Tax \) — Income tax payable (HKD)
• \( Net\ Pay \) — Final take-home salary (HKD)

Explanation: The calculation accounts for two main statutory deductions in Hong Kong - MPF contributions and progressive income tax rates.

3. Importance of Net Pay Calculation

Details: Accurate net pay calculation is crucial for financial planning, budgeting, and understanding actual disposable income in Hong Kong's unique tax and MPF system.

4. Using the Calculator

Tips: Enter gross salary in HKD, MPF contribution amount in HKD, and estimated income tax in HKD. All values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the MPF contribution rate in Hong Kong?
A: Employees typically contribute 5% of their relevant income, capped at HKD 1,500 per month. Employers match this contribution.

Q2: How is Hong Kong income tax calculated?
A: Hong Kong uses a progressive tax rate system from 2% to 17%, or a standard rate of 15% on net chargeable income, whichever is lower.

Q3: Are there any tax allowances in Hong Kong?
A: Yes, including basic allowance, married person's allowance, dependent parent/grandparent allowance, and child allowance.

Q4: When are MPF contributions required?
A: MPF contributions are mandatory for employees aged 18-65 with at least 60 days of employment, with some exemptions.

Q5: Can I claim MPF contributions as tax deduction?
A: Yes, mandatory MPF contributions are tax-deductible up to HKD 18,000 per year.