shanghai housing provident fund management committee [2023] no. 3
chapter 1 general provisions
article 1 in order to strengthen the administration of housing provident fund contributions in this municipality, safeguard the legitimate rights and interests of the owners of housing provident fund accounts, these measures are formulated in accordance with the regulations on the administration of the housing provident fund released by the state council and the provisions of shanghai municipality on the administration of the housing provident fund, and in the light of the actual circumstances of this municipality.
article 2 these measures apply to the management of housing provident fund contributions within the administrative area of this municipality.
article 3 organizations such as state organs, public institutions, enterprises, private non-enterprise units, foundations, social groups, and other entities (hereinafter referred to as units) within the administrative area of this municipality shall contribute to the housing provident fund for their employees.
units that contribute to the housing provident fund in accordance with the law may also contribute to the supplementary housing provident fund for their employees.
article 4 for labor dispatch arrangements, the labor dispatching unit shall bear the responsibility for making housing provident fund contributions; the labor dispatching unit and the labor demand unit shall stipulate the amount of housing provident fund contributions to be paid in the labor dispatch agreement.
article 5 self-employed individual businessmen and their employed personnel, part-time workers, and other people in flexible employment may contribute to the housing provident fund on an individual basis.
article 6 where the employees working in shanghai are expatriates, have obtained permanent (long-term) residency rights abroad, and are hong kong, macao, and taiwan residents, and such employees have established labor (employment) relations with local employers and hold such certificates as the overseas talent residence permit of shanghai municipality, residence permit for hong kong, macao, and taiwan residents, foreign permanent resident id card, foreigners’ work permit, or approval certificate for employment of personnel settling abroad to work in shanghai, they and their employers may, with the consent of both the employee and the employer after negotiation, make contributions to the housing provident fund and the supplementary housing provident fund according to regulations.
article 7 the shanghai housing provident fund management committee (hereinafter referred to as the shpfmc) is the decision-making body for the administration of the housing provident fund in this municipality and shall perform the following duties:
(i) formulating and adjusting methods of management and specific management measures for housing provident fund contributions in accordance with relevant laws, regulations and policies, and supervising their implementation;
(ii) examining and approving the reports on plans for the collection and unified management of the housing provident fund and their implementation;
(iii) proposing specific contribution rates of the housing provident fund as well as the upper and lower limits of the housing provident fund monthly contribution (amount);
(iv) determining the conditions for a unit to reduce the contribution rate or defer the payment;
(v) other duties prescribed by the regulations of the state and this municipality.
article 8 the shanghai provident fund management center (hereinafter referred to as the spfmc) is responsible for the management of housing provident fund contributions in this municipality and shall perform the following duties:
(i) drawing up and implementing plans for the collection and unified management of the housing provident fund;
(ii) being responsible for handling housing provident fund contribution operations;
(iii) being responsible for recording and accounting employees’ contributions to the housing provident fund;
(iv) being responsible for supervising and inspecting the contributions to the housing provident fund made by units;
(v) drawing up reports on the implementation of plans for the collection and unified management of the housing provident fund; and
(vi) undertaking other duties as decided or entrusted by the shpfmc.
the management departments in each district subordinate to the spfmc (hereinafter referred to as the management department) are responsible for handling specific contribution operations to the housing provident fund.
article 9 the spfmc shall authorize the commissioned bank to handle housing provident fund contribution operations and related financial business in accordance with regulations.
chapter 2 account establishment, change, and cancellation
article 10 a newly established unit shall go to the management department to undertake the setting up of unit housing provident fund accounts within 30 days from the date of its establishment.
article 11 when a new employee is hired, a unit shall go through the formalities of opening or transferring his or her housing provident fund account at a commissioned bank within 30 days from the date of the employment. each employee may have only one account in this municipality. if an employee has multiple housing provident fund accounts, he or she shall go through the formalities for the merger of these accounts.
article 12 in the event of any changes in the registered items such as unit name or address, the unit shall apply for modification of unit housing provident fund account information to the management department or commissioned bank within 30 days from the date of change.
article 13 in the event of any changes in registered items such as employee name and id number, the employee shall apply for modification of employee housing provident fund account information to the management department or commissioned bank within 30 days from the date of change.
article 14 in case a unit is merged, divided, dismantled, dissolved or bankrupted, the original unit or a liquidation organization shall undertake cancellation of registration at the management department within 30 days from the date of the occurrence of any of the above-mentioned situations.
if the original unit fails to go through cancellation formalities as required and remains so even after public notification for 30 days, the spfmc may cancel its unit housing provident fund account.
article 15 in case an employee’s housing provident fund account is sealed up or suspended for more than six months and the account balance is zero, the employee may apply for cancellation of his/her housing provident fund account. if the employee fails to go through cancellation formalities as required and remains so even after public notification for 30 days, the spfmc may cancel the employee’s housing provident fund account.
chapter 3 contributions
article 16 the base for housing provident fund contributions of an employee shall be adjusted to the monthly average salary of the employee in the previous year. the monthly average salary will be calculated as an item listed in the composition of gross salary by the national bureau of statistics.
for employees that are employed for the first time, their employers shall make housing provident fund contributions for them beginning from the second month of their employment, with their salary-based income for the second month as their contribution base.
for employees that are newly re-employed, their employers shall make housing provident fund contributions for them from the date of salary payment, with their salary-based income for the first month as their contribution base.
article 17 the upper limit of the housing provident fund contribution base is three times the average salary of urban employees in full caliber in this municipality in the previous year, and the lower limit of the contribution base is the minimum salary standard in this municipality in the previous year.
article 18 the monthly contribution (amount) of the housing provident fund consists of two parts: the employee’s monthly contribution (amount) and the employer’s monthly contribution (amount) for the employee.
the employee’s monthly contribution (amount) is the contribution base multiplied by the employee’s housing provident fund contribution rate.
the employer’s monthly contribution (amount) for the employee is the contribution base multiplied by the employer’s housing provident fund contribution rate.
article 19 the housing provident fund contributions made by an employee shall be withheld from his or her salary by the unit for which he or she serves.
a unit shall, within five days from the payday of each month, remit the housing provident fund payments by the unit together with those withheld by the unit for its employees to the special housing provident fund accounts opened by the spfmc at the commissioned bank, and the spfmc shall have the contributions credited to the housing provident fund accounts of employees.
both the housing provident fund contributions made by employees on their own and those made by the employer for employees belong to employees themselves.
article 20 for employees newly re-employed or leaving a job in the same month with less than a full month of work, in case the employer pays their salary for that month, the employer shall contribute to their housing provident fund accounts, with their total monthly salary-based income as the contribution base; in case of disputes, the contribution base shall be their actual monthly salary-based income for that month [the monthly contribution (amount) shall not be lower than the lower limit of the monthly contribution (amount) for the year]. the same month shall not be counted for duplicate contributions. if the salary paid by the employer for the month is not enough to cover the required housing provident fund contribution to be withheld for an employee, the employee shall make up the difference.
article 21 a unit shall make housing provident fund contributions on schedule and in full, and the contributions may not be overdue, or underpaid, or overpaid. where a unit is overdue in making contributions or underpays such contributions to the housing provident fund for its employees, it shall make up for the housing provident fund contributions it owed in accordance with national regulations, and such contributions shall be made to the employees’ accounts. the unit as employer and its employees shall bear their respective contribution obligations.
employees who have gone through the formalities of retirement and are receiving pension benefits, or who are deceased or have been declared dead, no longer need to contribute to the housing provident fund.
article 22 in the event of merger, division, dismantlement, dissolution, or bankruptcy, a unit shall make up for the unpaid or underpaid housing provident fund contributions for its employees.
in case a unit is to be merged or divided and is incapable of making up for the contributions, the subject liable for paying what it owes the housing provident fund shall be clearly identified before the unit goes through the relevant formalities.
in case a unit is dismantled, dissolved, or declared bankrupt in accordance with the law, the contributions it owed to the housing provident fund shall be paid off in the liquidation in accordance with national and municipal regulations.
article 23 a unit may apply for a reduction of contribution rate to less than 5% if any of the following conditions is met:
(i) enterprises with consecutive operating losses for two years or more, with the average monthly salary of employees being no higher than 60% of the average monthly salary of employees in this municipality in the previous year;
(ii) small and micro-enterprises (smes) meeting national regulations within three years from the date of establishment.
article 24 a unit may apply for a deferral of housing provident fund contributions if one of the following conditions is met:
(i) enterprises on the verge of bankruptcy, already suspended, or having been approved to defer payment of social insurance premiums, may apply for a deferral of housing provident fund contributions;
(ii) enterprises that have been approved to reduce the contribution rate continuously for three years or have been approved to defer contributions in the previous year, and are still operating at a loss, with the average monthly salary of employees being no higher than 60% of the average monthly salary of employees in this municipality in the previous year, may apply for a deferral of housing provident fund contributions;
(iii) enterprises with poor economic benefits or consecutive operating losses for two years or more, where the employees’ salaries, after deducting the employees’ share of housing provident fund contributions, do not reach the minimum salary standard for employees in this municipality for the current year, may apply for a deferral of the employees’ share of housing provident fund contributions with the employees’ consent.
article 25 a unit that has been approved to lower the contribution rate or defer housing provident fund contributions shall timely raise the contribution rate or resume normal contributions and make up for the arrears they owed to the housing provident fund when the economic efficiency has improved.
article 26 a unit applying to reduce the contribution rate or suspend housing provident fund contributions shall, upon discussion and approval by the employee representative congress or the trade union of the unit and after public notification within the unit, apply to the management department for such reduction or deferral and submit relevant materials as required. the management department shall, pursuant to relevant regulations, transfer the materials of the units qualified for reducing the contribution rate or deferring housing provident fund contributions to the spfmc for review and approval. upon verification and approval by the spfmc, the unit may reduce the contribution rate or defer housing provident fund contributions. the verification period shall not exceed 10 working days
a unit shall apply to reduce the contribution rate or defer housing provident fund contributions based on the contribution year as stipulated in article 34. the period for reducing the contribution rate or deferring contributions shall be one year, and if the reduction or deferral is still required upon expiration, a new application shall be submitted for processing within 30 days before the expiration date.
the spfmc shall rigorously review the applications made by units to reduce the contribution rate or defer contributions in accordance with regulations and report specially to the shpfmc on an annual basis.
article 27 in the event of overpayment, incorrect payment, or other errors in the housing provident fund account of an individual employee, upon confirmation by the employee, the spfmc shall, based on the erroneously paid amount in the employee’s housing provident fund account, make a refund for any overpayment or demand a supplemental payment for any deficiency.
article 28 the spfmc shall set up itemized accounts of housing provident fund contributions made by both units and employees, and issue valid certificates for housing provident fund contributions to employees who make contributions.
article 29 employees who make housing provident fund contributions in this municipality may, due to reasons such as non-local loans, apply to the spfmc for issuance of the certificate of contributions to and use of the housing provident fund for employees of non-local loans.
article 30 a unit that has established a housing provident fund account in this municipality and is regularly making contributions may apply to the spfmc for issuance of the certificate of contributions to and use of the housing provident fund for units due to reasons such as preparing for listing, financing, or audits.
article 31 a unit has the right to inquire about its housing provident fund contributions, and its employees have the right to inquire about the contributions to their own housing provident fund accounts. the spfmc shall provide convenient services for such inquiries.
article 32 the spfmc, commissioned banks, contributing units, and relevant staff shall keep confidential the information of employees’ housing provident fund accounts.
article 33 the contribution rate, contribution base, as well as upper and lower limits of monthly contribution (amount) of the housing provident fund for employees and units shall be implemented in accordance with the relevant national regulations. the specific contribution rate as well as upper and lower limits of monthly contribution (amount) shall be formulated by the shpfmc every year, and shall be announced and implemented after approval by the shanghai municipal people’s government.
article 34 in principle, the contribution year for adjusting the contribution rate and contribution base of the housing provident fund in this municipality starts from july 1 of the current year and ends on june 30 of the next year. if adjustment is necessary, it shall be reported to the shpfmc for approval and then announced to the public.
article 35 the interests on the housing provident fund shall, on the basis of the interest rates specified by the state, be calculated from the date on which it is deposited into the housing provident fund accounts of employees, and shall be calculated as usual even if a housing provident fund account is sealed up. the 30th day of june shall be the date for the settlement of interests every year.
chapter 4 account transfer, sealing-up, and suspension
article 36 where an employee terminates employment relations with the original unit and is re-employed by a new unit, the original unit shall transfer the individual employee’s housing provident fund account to the new unit for the latter to make contributions within 30 days from the date of termination of employment relations.
article 37 an employee who has stably made housing provident fund contributions in this municipality for more than six months and meets the transfer conditions specified by the housing provident fund center of other provinces or cities may apply to the spfmc for transferring the housing provident fund contributions deposited in other provinces or cities to this municipality.
an employee who has stably made housing provident fund contributions in other provinces or cities for more than six months and meets the following conditions may apply to the housing provident fund center of other provinces or cities for transferring his or her housing provident fund contributions deposited in this municipality to other provinces or cities:
(i) the employee has terminated employment relations with his or her unit in this municipality, and his or her housing provident fund account in this municipality is sealed up or suspended, and has not been legally frozen by the court;
(ii) the employee neither has appointed or uncompleted withdrawal operations, nor has the valid certificate of contributions to and use of the housing provident fund for employees of non-local loans in this municipality;
(iii) the employee or his or her spouse has no unsettled housing provident fund debt as a borrower or joint borrower in this municipality.
article 38 a unit shall go through the sealing-up formalities for its employees under any of the following circumstances:
(i) where the employee terminates the employment relation with his or her unit and is not re-employed by another unit, the original unit shall go through the formalities of sealing up his or her housing provident fund account within 30 days from termination of the employment relation;
(ii) in case the housing provident fund account of the employee is suspended or cancelled due to merger or division of his or her unit, or in case a unit is dismantled, dissolved or bankrupted and employees are not re-employed, the unit or a liquidation organization shall go through the formalities of sealing up housing provident fund accounts for their employees prior to the suspension or cancellation of the unit;
(iii) where the employee’s employment relations are moved out of this municipality, and his or her unit in another province or city has not set up a housing provident fund account for the employee, the original unit shall go through the formalities of sealing up his or her housing provident fund account.
article 39 the spfmc shall establish a unified special housing provident fund account to centrally manage sealed accounts in the entire municipality.
before going through the formalities of sealing up accounts, the unit or liquidation organization shall inform employees in advance.
article 40 in case a unit discovers missing information in an employee’s housing provident fund account when going through the formalities of sealing up housing provident fund accounts for employees, the unit shall verify and supplement the relevant information.
in the event of inconsistency between the personal identity information of an employee whose housing provident fund account is sealed up and the records of the spfmc, the employee may go through the formalities of modifying the personal information in his or her housing provident fund account with valid proof at the management department.
article 41 in case a unit fails to go through the formalities of sealing up or transferring the housing provident fund account for one of its employees, the employee may apply to the spfmc to urge and supervise the handling of the account by presenting valid documentary evidence. in case the unit fails to handle the matter within 10 days starting from the date when it is urged, the spfmc shall handle the case based on the employee’s application.
article 42 in case an employee’s housing provident fund account does not meet the sealing-up conditions but is actually under one of the following circumstances of interrupted contributions, the unit may go through the formalities of suspending his or her account:
(i) the employee is re-employed by a new unit, but his or her housing provident fund account is not transferred from the original unit.
(ii) the employee’s housing provident fund account meets the conditions for cancellation and withdrawal, but the withdrawal formalities have not been completed.
(iii) the employee temporarily suspends the salary relation with the unit but still maintains the employment relation.
for cases falling under item (i) of the preceding paragraph, the suspension period shall not exceed six months, and the unit shall go through the sealing-up or transfer formalities according to the actual situation of the employee in a timely manner. if the relevant formalities are still not completed after the suspension period expires, the employee’s housing provident fund account shall automatically resume normal status. for cases falling under item (iii) of the preceding paragraph, the suspension period shall not exceed twelve months, and in case it is necessary to continue the suspension after the suspension period expires, the unit shall submit a new application for suspension prior to the expiration of the suspension period. in case no new application is submitted or the application is not approved, the suspension period shall expire, and the employee’s housing provident fund account shall automatically resume normal status.
chapter 5 digital services
article 43 the spfmc shall vigorously create conditions to drive the digital transformation of housing provident fund contribution operations, deeply implement the “internet government services” initiative, and enhance service capabilities for digital management, with the aim of providing convenient and efficient services for contributing units and employees.
article 44 the spfmc shall ensure the security of funds, data, and systems of the housing provident fund by utilizing data sharing empowerment, preventing risks in contribution operations, strengthening supervision and management, and guaranteeing the standard and orderly progress of online contribution operations.
article 45 the spfmc shall, in accordance with the requirement of the state to deepen the reform of “delegating power, improving regulation, and upgrading services” and continuously optimize the business environment, push forward with the application of service models such as government online-offline shanghai, cross-provincial government services, and one-stop government services to housing provident fun contribution operations, and facilitate the integrated development of the housing provident fund in the yangtze river delta.
chapter 6 supervision
article 46 the management of contributions by the spfmc shall be subject to supervision and inspection by the competent departments, the finance department, the audit department, units, employees, and the society.
article 47 the spfmc shall strengthen supervision and inspection of housing provident fund contributions made by units. where, in violation of the laws, a unit fails to go through the formalities of housing provident fund contribution registration or those of opening housing provident fund accounts for its employees, is overdue in making contributions, or underpays contributions, the spfmc shall handle such cases in accordance with the regulations on the administration of the housing provident fund and the provisions of shanghai municipality on the administration of the housing provident fund.
article 48 a unit shall provide relevant certification materials that are authentic, legal, and precise to go through the formalities of housing provident fund contribution operations. where a unit provides false materials, the spfmc shall publicly disclose the relevant information of the unit and include its illegal behavior in the credit system in accordance with the law; in the event of suspicion of a crime, the unit shall be transferred to the judicial authorities in accordance with the law.
chapter 7 supplementary provisions
article 49 the account management, contributions, transfer, sealing-up, suspension, etc. of the supplementary housing provident fund shall refer to these measures.
article 50 the shpfmc is responsible for interpreting these measures.
article 51 the spfmc is responsible for organizing the implementation of these measures. the spfmc may formulate detailed rules for implementation based on these measures.
article 52 these measures shall come into force on april 1, 2023, and shall be valid for five years. the notice on printing and distributing the management measures for reducing the housing provident fund contribution rate or deferring housing provident fund contributions (shpfmc [2018] no. 7) and the notice on some issues concerning the participation by employees working in shanghai who are expatriates, have obtained permanent (long-term) residency rights abroad, and are taiwan, hong kong, and macao residents in the housing provident fund system (shpfmc [2020] no. 4) shall be repealed simultaneously.
shanghai housing provident fund management committee
march 31, 2023