Laws & Regulations
Notice on Adjustment of Shanghai Housing Provident Fund Payment Basis Upper and Lower Limits of Monthly Payment Amounts for Fiscal Year 2016
2016-06-24

Notice on Adjustment of Shanghai Housing Provident Fund Payment Basis Upper and Lower Limits of Monthly Payment Amounts for Fiscal Year 2016

SHGJJG No.9 (2016)

 

 

To All Units Liable to Pay Housing Provident Fund:

 

To implement the resolutions of the State Council’s executive meeting on alleviating burdens on enterprises by means of standardizing and appropriately reducing housing provident fund payment rates on an interim basis, in accordance with relevant stipulations of the State Council’s Regulations on Housing Provident Fund Administration and Provisions of Shanghai Municipality on Housing Provident Fund Administration, we have made adjustments to policies pertaining to housing provident fund payment basis, payment rates and upper and lower limits of monthly payment amounts in alignment with the actual situation of the Municipality after deliberation and ratification by the 52nd plenary meeting of the Municipal Housing Provident Fund Management Committee, and hereby notify you of relevant issues concerning adjustment of Shanghai housing provident fund payment basis, payment rates and upper and lower limits of monthly payment amounts for fiscal year 2016 (from 1 July 2016 to 30 June 2017) as follows:

 

1. Housing Provident Fund Payment Basis and Calculation Method

 

All units should calculate employees’ average monthly salaries according to the average monthly salary calculation method adopted by Shanghai Municipal Statistics Bureau, and determine housing provident fund monthly payment amounts by using employees’ average monthly salaries as payment basis. All units should inform their employees of the ratification results within one month after having employees’ housing provident fund monthly payment amounts ratified so as to protect their legitimate rights and interests.

 

As of 1 July 2016, employees’ housing provident fund payment basis shall be adjusted from average monthly salaries of 2014 to average monthly salaries of 2015.

 

In the case of the employee starting first job as of 1 January 2016, the second month’s salary or the year-to-date average monthly salary shall be used as the housing provident fund payment basis.

 

As for the employee newly transferred to the present unit as of 1 January 2016, the first month’s salary upon the transfer or the average monthly salary after the transfer shall be used as the housing provident fund payment basis.

 

2. Payment Rates

 

(1)     Housing Provident Fund Payment Rates

 

The payment rates of employees and units for the municipal housing provident fund in fiscal year 2016 shall remain the same as those of fiscal year 2015, namely, the payment rates for the housing provident fund shall both be 7%.

 

(2)     Additional Housing Provident Fund Payment Rates

 

Paying units may opt to participate in the additional housing provident fund system the same as before, except that the payment rates of employees and units for the additional housing provident fund shall both range from 1% to 5%, with the actual rates to be decided on by the units according to the actual situation.

 

(3)     Applying for Reduced Rate or Prolonged Payment

An application may be submitted as necessary for approval of reduced rate or prolonged payment pursuant to Notice of MOHURD, NDRC, MOF and PBOC on Standardization and Interim Reduction of Housing Provident Fund Payment Rates and relevant regulations of this Municipality (to be released separately).

 

3. Calculation of Housing Provident Fund Monthly Payment Amount

 

Housing provident fund monthly payment amount = the employee’s average monthly salary of the previous year multiplied by the employee’s housing provident fund payment rate + the employee’s average monthly salary of the previous year multiplied by the unit’s housing provident fund payment rate. The same method applies to the calculation of the additional housing provident fund.

 

4. Upper and Lower Limits of Housing Provident Fund Monthly Payment Amount

 

(1)     Upper Limit of Monthly Payment Amount for Fiscal Year 2016

 

The upper limit of housing provident fund monthly payment amount is 2494 yuan, and 4276 yuan is set as the upper limit of the housing provident fund monthly payment amount for owners of individual industrial & commercial household businesses (hereinafter “individual businesses”) in urban areas and their employees as well as freelancers.

 The upper limit of additional housing provident fund monthly payment, based on the payment rates of employees and units for the additional housing provident fund both ranging from 1% to 5%, shall be 1782 yuan.

 

(2)     Lower Limit of Monthly Payment Amount for Fiscal Year 2016

 

The lower limit of the housing provident fund monthly payment amount, based on the payment rate of 7% for both the unit and the employee, is 282 yuan. The lower limit of the housing provident fund monthly payment amount for owners and employees of individual businesses in urban areas as well as freelancers should be set by reference to this standard level.

 

The monthly payment amount of the employees in some units with a contracted or commision based pay scale can be negotiated between the units and their employees, and determined after submission to the municipal provident fund management center for review and approval, and should not be less than the prescribed lower limit of housing provident fund monthly payment amount for the fiscal year.

 

Adjustment of payment basis for fiscal year 2016 shall mainly adopt an online approach for efficiency. Municipal Provident Fund Center shall publicize services handling requirements, online processing instructions as well as the documents pertaining to information about payment basis adjustment in advance by means of newspaper display and website notice. All units should proactively proceed with the internet-based solution for annual basis adjustment by clicking on the special column of Payment Basis Adjustment on Shanghai Housing Provident Fund Website (www.shgjj.com) to read or download and process the annual payment basis adjustment directly.

 

Please be notified and proceed accordingly.

 

Shanghai Housing Provident Fund Management Committee

21 June 2016