Notice on Adjustment of Payment BasisŁ¦Upper and Lower Limits of
Monthly Payment Amounts for Shanghai Municipal Housing Provident Fund for Fiscal Year 2012
SHPFMC (2012) No.4
To All Units Liable to Pay the Housing Provident Fund:
In accordance with relevant provisions of the Regulations on Housing Provident Fund Administration of the State Council and the Provisions of Shanghai Municipality on Housing Provident Fund Administration and after deliberation and ratification by the 34th plenary meeting of the Municipal Housing Provident Fund Management Committee,we hereby notify you of adjustment of the payment basis as well as the upper and lower limits of monthly payment amounts for the municipal housing provident fund for fiscal year 2012 (from July 1st of 2012 to June 30th of 2013) as follows:
1. Housing Provident Fund Payment Basis and Calculation Method
All work units shall calculate the average monthly salary of their employees according to the average monthly salary calculation method adopted by Shanghai Municipal Statistics Bureau, and determine the monthly payment amounts for the housing provident fund by using the employees’ average monthly salary as their payment basis. All units shall inform their employees of the determined results within one month after the determination of their employees’ monthly payment amounts for the housing provident fund so as to protect their legitimate rights and interests.
As of July 1st of 2012, the basis for employees’ payment of the municipal housing provident fund shall be adjusted from the average monthly salary of the year 2010 to the average monthly salary of the year 2011.
In the case of employees starting their first job as of January 1st of 2012, their second month’s salary or the average monthly salary after they started their job shall be used as the basis for payment of the housing provident fund.
In the case of employees newly transferred to the present unit as of January 1st of 2012, their first month’s salary upon the transfer or the average monthly salary after the transfer shall be used as the basis for payment of the housing provident fund.
2. Housing Provident Fund Payment Rates
The payment rates of employees and units for the municipal housing provident fund and the additional housing provident fund in fiscal year 2012 shall remain the same as those of fiscal year 2011. In other words, the payment rates for the housing provident fund shall both be 7%, and the payment rates for the additional housing provident fund shall both range from 1% to 8%, with the actual rate to be decided on by the employing units according to the actual situation.
3. The Monthly Payment Amounts for the Housing Provident Fund as well as the Upper and Lower Payment Limits
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.
With regard to the municipal housing provident fund of fiscal year 2012, the upper limit of the monthly payment amount is 1820 yuan, and 3118 yuan is the upper limit of the monthly payment amount for owners of individual industrial & commercial household businesses (hereinafter “individual businesses”) in urban areas and their employees as well as freelancers.
With regard to the municipal housing provident fund of fiscal year of 2012, the lower limit of the monthly payment amount is 180 yuan, which is also the lower limit for owners of individual businesses in urban areas and their employees as well as freelancers.
4. Applicable Scope and Coverage of Housing Provident Fund Payment
State organs, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, public institutions, private non-business units and social groups shall, according to the law, pay the housing provident fund for their actually-hired employees with a permanent urban domicile (hukou) in this municipality or other provinces or cities.
Labour service corporations shall pay the housing provident fund for their actually-hired employees with a permanent urban domicile in this municipality or other provinces or cities. All units shall also pay the housing provident fund for their actually-hired but not-on-the-payroll employees with a permanent urban domicile of this municipality or other provinces or cities.
In addition, a unit may pay the housing provident fund for its on-the-job employees with an agricultural domicile.
5. Payment Inspection
Shanghai Provident Fund Management Center shall inspect the payment situation of each paying unit during each year’s period of payment basis adjustment. Each paying unit shall prepare documents such as the employee list, the social insurance payment notice and the verified salary sheet for inspection by Shanghai Provident Fund Management Center. Each unit must be cooperative by verifying the number of payable employees and the number of the actual paying employees and proposing rectification measures before it can adjust the payment basis for the new fiscal year. All units paying the housing provident fund (and the additional housing provident fund) of this Municipality shall make timely and full-amount payment of the housing provident fund for all their on-the-job employees. Provided that a unit pays the housing provident fund (and the additional provident fund) only for a proportion of its on-the-job employees or simply does not pay the housing provident fund, Shanghai Provident Fund Management Center shall protect the employees’ legitimate rights and interests in accordance with provisions of the Regulations on Housing Provident Fund Administration, the Provisions of Shanghai Municipality on Housing Provident Fund Administration, and the Administrative Measures for Executive Enforcement of Shanghai Municipal Housing Provident Fund.
Additionally, Shanghai Provident Fund Management Center will provide diversified payment methods to facilitate units’ payment of the housing provident fund. Apart from the current method of cheque collection, all units may also, in the light of their actual circumstances, resort to the methods of online payment or deposit deduction via the Bank of Construction (see the notice at the bank’s outlets for details). Additional service outlets will be established in this Municipality to facilitate the paying units and employees.
This notice is hereby issued for implementation.
Shanghai Housing Provident Fund Management Committee
June 13, 2012
