---
title: "Fiscal Budget 2026 | MPF to launch \"Fully Flexible\" first phase covering employees hired after May 2025"
description: "The Financial Secretary, Paul Chan, announced in the \"2026 Budget\" that the Mandatory Provident Fund Schemes Authority will implement a \"full free choice\" arrangement, with the first phase covering em"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/276832732.md"
published_at: "2026-02-25T04:41:55.000Z"
---

# Fiscal Budget 2026 | MPF to launch "Fully Flexible" first phase covering employees hired after May 2025

> The Financial Secretary, Paul Chan, announced in the "2026 Budget" that the Mandatory Provident Fund Schemes Authority will implement a "full free choice" arrangement, with the first phase covering employees who join after May 1, 2025. The government plans to submit a bill for amendment in the first half of next year to extend this to existing employees who joined earlier, enhancing employee choice. At the same time, the MPFA will optimize the procedures for recovering overdue contributions and increase the flexibility of investing in the Mandatory Provident Fund. Relevant consultations will be conducted this year

The Financial Secretary, Paul Chan, read out the "Budget 2026," mentioning that the Mandatory Provident Fund Schemes Authority (MPFA) is gradually implementing the "Full Portability" arrangement for MPF. This year, the first phase of the plan will be implemented, covering employees who join on or after May 1, 2025.

The government plans to submit a bill for amendment in the first half of next year to extend "Full Portability" to existing employees who joined before the aforementioned date, allowing more workers to choose their MPF trustees and schemes independently.

In addition, the MPFA has proposed to optimize the process for recovering overdue contributions from employers to strengthen the protection of employees' rights. At the same time, the authorities also plan to increase flexibility for trustees and related service providers in investing MPF. The MPFA will consult stakeholders this year, and the government will subsequently submit the relevant bill for amendment.

Related article: MPF rating states that in February, the average MPF gain was HKD 941, affected by two major assets, with Japanese stock funds performing the best

### Related Stocks

- [07500.HK - FI2 CSOP HSI](https://longbridge.com/en/quote/07500.HK.md)
- [07300.HK - FI CSOP HSI](https://longbridge.com/en/quote/07300.HK.md)
- [02800.HK - TRACKER FUND](https://longbridge.com/en/quote/02800.HK.md)
- [00HSI.HK - Hang Seng Index](https://longbridge.com/en/quote/00HSI.HK.md)
- [03115.HK - ISHARESHSI](https://longbridge.com/en/quote/03115.HK.md)
- [07200.HK - FL2 CSOP HSI](https://longbridge.com/en/quote/07200.HK.md)
- [03037.HK - CSOP HSI ETF](https://longbridge.com/en/quote/03037.HK.md)
- [159920.CN - ChinaAMC Hang Seng ETF](https://longbridge.com/en/quote/159920.CN.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| HK budget - govt forecasts 2026 underlying inflation at 1.7% | HK budget - govt forecasts 2026 underlying inflation at 1.7% | [Link](https://longbridge.com/en/news/276823839.md) |
| Hong Kong hikes stamp duty for luxury homes as sales rebound | Hong Kong is increasing stamp duty on luxury home transactions over HK$100 million from 4.25% to 6.5%, as announced by F | [Link](https://longbridge.com/en/news/276841752.md) |
| Hong Kong budget must be ‘prudent’, balance social needs and reserves: Paul Chan | Hong Kong's Financial Secretary Paul Chan emphasized the need for fiscal prudence in the upcoming 2026-27 budget, balanc | [Link](https://longbridge.com/en/news/276527893.md) |
| Hong Kong sees fast growth continuing into 2026 on rebound | Hong Kong's Financial Secretary Paul Chan forecasts economic growth of 2.5 to 3.5 percent in 2026, reflecting confidence | [Link](https://longbridge.com/en/news/276829842.md) |
| Hong Kong govt says Q4 GDP +3.8% y/y | Hong Kong govt says Q4 GDP +3.8% y/y | [Link](https://longbridge.com/en/news/276826499.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.