TVC in Hong Kong 2026: what a contribution really costs

Paying into a private or workplace pension in Hong Kong usually lowers your tax and sometimes your social-security contributions, so each unit you put in costs you less than it adds to the plan. The calculator above works this out for your salary. Below you will find this year’s effect on your pay, the tax rules and how the plan compares with saving the money yourself.

This year: salary without and with the plan

	Without plan (HK$)	With plan (HK$)
Gross / year (incl. bonus)	300,000	300,000
Social security	−15,000	−15,000
Your contribution	–	−15,000
Income tax	−8,000	−6,500
Take-home / year	277,000	263,500
Employer contribution	–	+0
Into the plan (you + employer)	–	15,000
Total received / year (take-home + plan)	277,000	278,500

In the example, your net pay is HK$21,958.33 a month with the plan: HK$1,125.00 less than without it (HK$23,083.33) · tax & contributions saved cover 10.0%. You save HK$1,500 a year (tax + social security), so each unit you pay in costs you HK$0.90. The balance could reach HK$455,605 (you HK$300,000 · employer HK$0 · return HK$155,605); at payout that is about HK$455,605 net (after 0.0% tax & charges).

Tax treatment

Tax-deductible voluntary contributions (TVC): deductible up to $60,000 a year (together with deferred annuity premiums); withdrawals from 65 are not taxed. Interest on bank deposits is not taxed in Hong Kong. Tax-deductible voluntary contributions (TVC) to an MPF account and qualifying deferred annuity premiums are deductible up to $60,000 a year together. TVC can only be withdrawn at 65 (or 60 on early retirement), like mandatory contributions, and MPF benefits are not taxed.

The plan or saving it yourself?

Total that left your take-home pay: HK$270,000
Plan balance: HK$455,605
Plan, net to you: HK$455,605
Saving yourself, net: HK$410,044
Advantage of the plan: +HK$45,560

Frequently asked questions

Is it worth paying into TVC in Hong Kong?

In the example, the plan leaves you +HK$45,560 better off than saving the same money yourself, mainly because of the tax relief and any employer contribution. Returns are not guaranteed.

How much tax do I save?

In the example, HK$1,500 this year (tax + social security). Each unit you pay in costs you HK$0.90 out of your take-home pay.

What happens at payout?

In the example you would receive about HK$455,605 (after 0.0% tax & charges). Payout rules and taxes are listed in the tax section above.

Which return does the calculator assume?

The return is your own assumption in the calculator, not a forecast. Investments can lose value; try more than one value.

Rules and official sources: see “Rules applied (2026)” above. Last checked: October 2026. The amounts are estimates for information, not financial or legal advice.

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The same calculator for Singapore · Japan · South Korea