the municipality issues measures on hpf management of needy enterprises’ payment rate reduction or postponement of payment-凯发k8国际首页登录

notice on release of hpf management measures of shanghai municipality on payment rate reduction or postponement of payment

shgjjg no. 10 (2016)

 shanghai provident fund management center:

 we hereby issue hpf management measures of shanghai municipality on payment rate reduction or postponement of payment after review and approval of the 52^nd session of the municipal housing provident fund management committee for implementation. please proceed accordingly.

shanghai housing provident fund management committee
28 june 2016  

hpf management measures of shanghai municipality on payment rate reduction or postponement of payment

article 1 in light of the actual circumstances of this municipality,hpf management measures of shanghai municipality on payment rate reduction or postponement of payment (hereinafter referred to as the “measures”) has been developed in accordance with the state council’s regulations on management of housing provident fund and notice of mohurd, ndrc, mof and pboc on standardization and interim reduction of housing provident fund payment rates (jj no. 74-2016), in a move to standardize and strengthen housing provident fund services pertaining to payment rate reduction and postponement of payment, safeguard the legitimate rights and interests of housing provident fund paying employees, and practically mitigate the burden of the impoverished enterprises to boost their vitality.

article 2  an entity is eligible for applying for approval of housing provident fund payment rate cut from 7% to not lower than 5% for both the entity and its employees if it meets either of the following criteria:

(1) the entity, with its employees’average monthly salary not higher than 60% of the previous year’s average monthly salary of the employees of the municipality, has endured business operational losses for two consecutive years at the least;

(2) the entity, a startup less than three years old, is a micro or small enterprise as defined in relevant provisions of the state.

 article 3 the entity is eligible for applying for postponement of payment if it meets one of the following criteria:

(1) the entity is on the verge of bankruptcy, or has ceased production, or has been approved of postponement of social insurance payment;

(2) the entity has been approved of payment rate reduction in the previous three consecutive years or postponement of payment in the previous year, and still endures business operational losses, with its employees’average monthly salary not higher than 60% of the previous year’s average monthly salary of the employees of the municipality;

(3) the entity, having endured business downturn or operational losses for at least two consecutive years, with the employee’s salary after deduction of the monthly housing provident fund payable failing to meet the minimum income standard of this municipality for the year, may apply, with consent of the employee, for postponement of payment of the personal housing provident fund payables.

article 4 the entity applying for payment rate reduction or postponement of payment must be discussed and approved by the pertinent workers congress or the trade union, and publicly displayed within the entity. the application should be submitted to spfmc’s management division of the district/county where the entity’s housing provident fund account is registered, together with relevant supporting documents as required.

the corresponding district/county management division should forward the eligible entity’s application documents to the municipal provident fund center for review and approval. the entity should proceed with settlement of payment rate reduction or postponement of payment after approval.

article 5 the entity implementing payment rate reduction or postponement of payment should increase payment rates as appropriate, or make normal payment and make up for the postponed payment after growth of the unit’s economic returns gains steam.

article 6 the pertinent entity is entitled to apply for payment rate reduction or postponement of payment for a length of one year, in conformity with the housing provident fund payment year as defined. application for renewal should be submitted within 30 days preceding the  expiring date.

article 7 the municipal provident fund center shall impose penalties in accordance with measures on management of shanghai provident fund administrative enforcement on those entities failing to make timely and adequate housing provident fund payment without the center’s endorsement of payment rate reduction or postponement of payment.

article 8 the pertinent entity should provide authentic,legitimate and exact supporting documents. upon identification of any phoney documents provided by the entity, the municipal provident fund center shall disclose pertinent information to the public and record those violations in the credit consulting system. any agency or individual having assisted in such falsifications shall be seriously dealt with, or even prosecuted for criminal liability under such circumstances as a crime is committed.

article 9 the municipal provident fund center should strictly review the cases relating to payment rate reduction or postponement of payment for approval in accordance with the  regulations, with a special report to be submitted to shanghai housing provident fund management committee annually.

article 10 the municipal provident fund center shall be responsible for organizing for implementation of the measures, and instituting pertinent working instructions as appropriate.

article 11 the measures shall be effective as of the issue date, for a period of two years.

notice on release of hpf management working instructions of shanghai municipality on payment rate reduction or postponement of payment

 shgjj no. 97 (2016)

to all district/county management divisions:

we hereby issue this working instructions, formulated in accordance with notice on release of hpf management measures of shanghai municipality on payment rate reduction or postponement of payment to shed light on and standardize the housing provident fund service to entities applying for payment rate reduction and postponement of payment, for you to proceed accordingly.

shanghai provident fund management center
14 july 2016   

hpf management working instructions of shanghai municipality on payment rate reduction or postponement of payment

hpf management working instructions of shanghai municipality on payment rate reduction or postponement of payment has been formulated in accordance with hpf management measures of shanghai municipality on payment rate reduction or postponement of payment, in a bid to shed light on and standardize the housing provident fund service to entities applying for payment rate reduction and postponement of payment.

1. scope of application

1）an entity is eligible for applying for approval of housing provident fund payment rate cut from 7% to not lower than 5% for both the entity and its employees if it meets either of the following criteria:

(1) the entity, with its employees’average monthly salary not higher than 60% of the previous year’s average monthly salary of the employees of the municipality, has endured business operational losses for two consecutive years at the least;

(2) the entity, a startup less than three years old, is a micro or small enterprise as defined in classification rules and judging criteria for small and medium sized enterprises by the state (miitje no. 300-2011).

2） the entity is eligible for applying for postponement of payment if it meets one of the following criteria:

(1) the entity is on the verge of bankruptcy, or has ceased production, or has been approved of postponement of social insurance payment;

(2) the entity has been approved of payment rate reduction in the previous three consecutive years or postponement of payment in the previous year, and still endures business operational losses, with its employees’average monthly salary not higher than 60% of the previous year’s average monthly salary of the employees of the municipality;

(3) the entity, having endured business downturn or operational losses for at least two consecutive years, with the employee’s salary after deduction of the monthly housing provident fund payable failing to meet the minimum income standard of this municipality for the year, may apply, with consent of the employee, for postponement of payment of the personal housing provident fund payables.

2. application materials

(1) testimonial documents portraying basic entity information:

 a) the applying entity’s letter of introduction, original and duplicate of the handler’s identity card;

 b) duplicate sets of the entity’s business registration and registered capital certificates such as business license, legal person certificate, with the official seal affixed;

 c) payment rate reduction (postponement of payment) approval form in quintuplet, completed and affixed with the entity’s official seal, the workers congress’ or trade union’s seal, and the supervising entity’s seal;

 d) resolutions of the entity’s workers congress or trade union, or consent of all paying employees documented and signed, with the official seal affixed.

(2) supporting documents pertaining to payment rate reduction:

1) supporting documents required in the case that the entity, with its employees’average monthly salary not higher than 60% of the previous year’s average monthly salary of the employees of the municipality, has endured business operational losses for two consecutive years at the least;

a) income tax returns and supporting statements, or audited financial statements (balance sheet, profit and loss statement) of the previous two accounting years, with the official seal affixed;

b) shanghai social insurance payment ratification form of the current year issued by shanghai social insurance fund settlement management center, with the entity’s official seal affixed; or monthly income testimonials signed by the entity’s employees for confirmation should the ratification form be unavailable.

2) in the case that the entity, a startup less than three years old, is a micro or small enterprise as specified in relevant state regulations, the financial statements of the prevoius accounting year (balance sheet, profit and loss statement), with the entity’s official seal affixed, should be provided.

(3) supporting documents pertaining to postponement of payment:

1) the entity on the verge of bankruptcy should provide audited financial statements (balance sheet, profit and loss statement) of the previous three accounting years, or the income tax returns and supporting statements of the previous three accounting years, with the official seal affixed.

2) the entity having ceased production should provide pertinent supporting documents.

3) the entity having been approved of postponement of social insurance payment should provide supporting documents for postponement of social insurance payment approved by the pertinent department in accordance with the regulations.

4) in the case that the entity has been approved of payment rate reduction in the previous three consecutive years or postponement of payment in the previous year, and still endures business operational losses, with its employees’average monthly salary not higher than 60% of the previous year’s average monthly salary of the employees of the municipality, it should provide supporting documents as follows:

a) documents indicating approval of payment rate reduction in the previous three consecutive years or approval of postponement of payment in the previous year;

b) income tax returns and supporting statements of the previous two accounting years, financial statements of the current year (balance sheet, profit and loss statement), with the entity’s official seal affixed;

c) shanghai social insurance payment ratification form of the current year issued by shanghai social insurance fund settlement management center, with the entity’s official seal affixed; or monthly income testimonials signed by the entity’s employees for confirmation should the ratification form be unavailable.

5）should the entity, having endured business downturn or operational losses for at least two consecutive years, with the employee’s salary after deduction of the monthly housing provident fund payable failing to meet the minimum income standard of this municipality for the year, apply for postponement of payment of the personal housing provident fund payables, it should provide supporting documents as follows:

a) income tax returns and supporting statements of the previous two accounting years, or audited financial statements (balance sheet, balance and profit statement) of the previous two accounting years, with the entity’s official seal affixed;

b) shanghai social insurance payment ratification form of the current year issued by shanghai social insurance fund settlement management center, with the entity’s official seal affixed; or monthly income testimonials signed by the entity’s employees for confirmation should the ratification form be unavailable;

c) confirmation letter for postponement of the employee’s hpf payment signed by the employee, with the entity’s official seal affixed.

3. application requirements

(1) to apply, first of all the entity should have the details about housing provident fund payment rate reduction or postponement of monthly payment discussed and approved by its workers congress or trade union, and make it publicly known within the entity. the convening and decision making process of the workers congress or trade union meetings should comply with relevant regulations.

(2) the applying entity should submit its application to spfmc’s district/county management division at its housing provident fund account registration location, together with relevant authentic, legal and accurate supporting documents. the municipal provident fund center shall disclose pertinent information to the public accordingly and have the violations recorded in the credit consulting system should the entity provide any fake documents to apply for payment rate reduction or postponement of payment. any agency or individual having assisted in such falsifications shall be seriously dealt with, or even prosecuted for criminal liability under such circumstances as a crime is committed.

(3) the applying entity must not forge the employee’s signature or coerce the employee into signing on the submitted supporting documents requiring the employee’s own signature.

 4. place for hanlding procedures

the entity applying for payment rate or postponement of payment should proceed with relevant handling procedures at spfmc’s district/county management division where the entity’s housing provident fund account was registered.

 5. handling and review process

(1) the district/county management division should proceed with handling and review process should the applying entity provide adequate supporting documents pertaining to payment rate reduction or postponement of payment as required.

(2) after receiving the entity’s application and supporting documents, the district/county management division should complete review with reference to the eligibility criteria, and determine whether to approve or disapprove the application preliminarily within five working days.

(3) after preliminary approval, the district/county management division should pass the application documents package  on to the municipal provident fund center for review and approval. the municipal provident fund center shall complete review and determine whether to approve or disapprove the entity’s application for payment rate reduction or postponement of payment within ten working days in wake of receival.

(4) after gaining approval from the municipal provident fund center, the entity shall carry hpf payment rate reduction (postponement of monthly payment) approval form to the housing provident fund service outlet of china construction bank in the district where the entity’s housing provident fund account was registered for fulfillment of the formalities.

(5) to enhance supervision over the approved payment rate reduction or postponement of payment cases, the municipal provident fund center shall verify pertinent information with the taxation and social security authorities on a consolidated basis.

6. arrears payment

(1) arrears payment requirements

1) the entity having been approved of postponement of housing provident fund payment should resume making normal payment once its economic growth gains steam, and make up the arrears payment.

2) the entity having been approved of payment rate cut as well as postponement of housing provident fund payment should resume making normal payment once its economic growth gains steam, and make up the arrears payment at the reduced payment rate already authorized.

3) should the employee retires or terminates employment with the entity during the payment postponement period, the entity should make up any inadequate or arrears payment through the employee’s personal housing provident fund account.

(2) supporting documents pertaining to arrears payment

1）shanghai social insurance payment ratification form of the current year issued by shanghai social insurance fund settlement management center, with the entity’s official seal affixed; or monthly income testimonials signed by the entity’s employees for confirmation should the ratification form be unavailable.

 2) shanghai housing provident fund arrears payment checklist, with the entity’s official seal affixed.

 7. settlement of violations

(1) as for those entities failing to make timely and adequate housing provident fund payment without gaining approval for payment rate cut or postponement of payment, the municipal provident fund center shall require mandatory remedial actions within prescribed time limit. should they fail to make overdue housing provident fund payment as required, the municipal provident fund center may apply to the people’s court for compulsory enforcement, and impose penalties in accordance with relevant regulations.

(2）upon identification of any phoney documents provided by the entity, the municipal provident fund center shall disclose pertinent information to the public via the housing provident fund website and record those violations in the credit consulting system. any agency or individual having assisted in such falsifications shall be seriously dealt with, or even prosecuted for criminal liability under such circumstances as a crime is committed.

8. date of enforcement

the working instructions shall become effective as of the date of its issuance, with a two-year validity period.