SHGJJG No. 4 (2017)

To All Units Liable to Pay Housing Provident Fund:

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 base, 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 55th 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 base, payment rates and upper and lower limits of monthly payment amounts for fiscal year 2017 (from 1 July 2017 to 30 June 2018) as follows:

1. Housing Provident Fund payment base 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 base. 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 2017, housing provident fund payment base of employees in this Municipality shall be adjusted from average monthly salaries of 2015 to average monthly salaries of 2016.

In the case of the employee starting first job as of 1 January 2017, the second month’s salary or the year-to-date average monthly salary shall be used as the housing provident fund payment base.

As for the employee newly transferred to the present unit as of 1 January 2017, 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 base.

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 2017 shall remain the same as those of fiscal year 2016, 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, with the payment rates of employees and units for the additional housing provident fund both ranging from 1% to 5%. Actual rates shall 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 relevant rules in Notice on Release of Housing Provident Fund Management Measures of the Municipality on Payment Rate Reduction or Postponement of Payment (SHGJJG No. 10 -2016)..

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 2017

The upper limit of housing provident fund monthly payment amount is 2732 yuan, and 4682 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 1952 yuan.

(2) Lower Limit of Monthly Payment Amount for Fiscal Year 2017

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 306 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 base for fiscal year 2017 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 base 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 base Adjustment on Shanghai Housing Provident Fund Website (www.shgjj.com) to read or download and process the annual payment base adjustment directly.

Please be notified and proceed accordingly.

Shanghai Housing Provident Fund Management Committee
22 June 2017