Shanghai Housing Provident Fund Management Committee
SHPFMC (2013) No.8
Notice on Adjustment of Shanghai Housing Provident Fund
payment base
£¦Upper and Lower Limits of Monthly Payment Amounts for Fiscal Year 2013
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 38th plenary meeting of the Municipal Housing Provident Fund Management Committee, we hereby notify you of relevant issues concerning adjustment of Shanghai housing provident fund payment base and upper and lower limits of monthly payment amounts for fiscal year 2013 (from July 1st of 2013 to June 30th of 2014) as follows:
1. Housing Provident Fund payment base and Calculation Method
All work units shall calculate employees’ average monthly salaries according to 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 base. All units shall 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 1st July 2013, employees’ housing provident fund payment base shall be adjusted from average monthly salaries of 2011 to average monthly salaries of 2012.
In the case of the employee starting first job as of 1st January 2013, the second month’s salary or the year-to-date average monthly salary shall be used as the housing provident fund payment base.
In the case of the employee newly transferred to the present unit as of January 1st of 2013, 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 2013 shall remain the same as those of fiscal year 2012. 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.
Those units indeed having difficulties in housing provident fund payment may proceed to apply for reduced payment rates (payment rates for the employee and the unit shall not be lower than the stipulated minimum payment rates, and must be positive integers) or postponed provident fund payment, and increase payment rates or make up for the postponed payment after growth of the unit’s economic returns gains steam.
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
For fiscal year 2013, the upper limit of housing provident fund monthly payment amount is 1970 yuan, and 3378 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.
For fiscal year 2013, the lower limit of the housing provident fund monthly payment amount pursuant to payment rate of 7% is 204 yuan, which shall also be 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.
5. Payment Review
Each paying unit should conduct housing provident fund payment review in combination with the housing provident fund payment enforcement inspection of the municipality, before proceeding to annual payment base adjustment.
Adjustment of payment base for fiscal year 2013 shall mainly adopt online approach for efficiency and convenience. Please log onto Shanghai Housing Provident Fund Website (www.shgjj.com) and click payment base Adjustment link to read or download documents, and follow working requirements and instructions concerning housing provident fund payment base adjustment procedures.
Please be notified and proceed accordingly.
Shanghai Housing Provident Fund Management Committee
6th June 2013
