eMPF platform driving down administrative fees

Not only is the eMPF platform a one-stop solution for members to manage their MPF accounts, it also helps reduce administrative costs through streamlined electronic processes, ultimately lowering fees. As trustees onboard the eMPF platform, some have already started or are planning to reduce administrative fees. This trend is expected to continue, creating further room for fee reductions and promoting greater transparency in the overall fee structure.

Lower fees benefit members
Before the launch of eMPF, the average administrative fee for MPF schemes was around 0.58% (excluding other service provider fees such as investment management fees). This meant that for every HK$10,000 of assets, members paid about HK$58 annually in administrative expenses. With trustees fully implementing eMPF-based pricing, overall MPF administrative fees can be reduced to 0.37%, saving members approximately 0.21% per year—boosting investment returns. Over the long term, these savings can significantly enhance retirement wealth. Typically, trustees will finalise fee adjustments within three months of joining the eMPF platform.
Variations in fee reductions
Members may notice differences in fee reductions among trustees. These variations mainly depend on the original fee levels, but ultimately, all funds will reduce administrative fees to 0.37%. Funds with higher original fees will see larger reductions, while those already close to 0.37% will have smaller adjustments. Some newly launched funds, anticipating eMPF adoption, have already set fees at 0.37%, so no further reduction will occur. This reflects a market trend toward standardized fees, reducing uncertainty for members when choosing funds.
Future administration fees could drop to 0.20%
It is worth noting that the 0.37% fee is not the final target. The MPFA has indicated that there is room for further reductions. Over the next decade, administrative fees are expected to fall to between 0.20% and 0.25%, representing a 57% to 65% decrease compared to pre-eMPF levels—far exceeding initial expectations.
Full adoption by early 2026
By the end of January 2026, when the last two MPF schemes join the eMPF platform, the entire market will be operating under the eMPF system. As the platform becomes more efficient and members increasingly embrace electronic processes, fees are expected to decline even faster, further reducing administrative costs and enhancing members’ investment returns.