SHGJJG No. 1 (2019)
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, Provisions of Shanghai Municipality on Housing Provident Fund Administration, and Measures of Shanghai Municipality on Management of Housing Provident Fund Payment, 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 58th 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 2019:
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 April 2019, employees’ housing provident fund payment base shall be adjusted from average monthly salaries of 2017 to average monthly salaries of 2018.
In the case of the employee starting first job as of 1 January 2019, 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 2019, 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.
The HPF and AHPF payment base shall neither exceed three times the average monthly salary of employees in this Municipality for 2018, nor fall below the Municipality’s minimum salary level set for 2018.
2. Timeline for Payment Base Adjustment
The website’s special column of Payment Adjustment shall be made available and accessible, and as of 1st April of 2019, all units shall be ready to log onto the website (www.shgjj.com) and proceed with adjustment of their employees’ housing provident fund payment base, payment rates and upper and lower limits of monthly payment amounts for fiscal year 2019.
3. Payment Rates
(1) HPF Payment Rates
The HPF payment rates of employees and units for fiscal year 2019 shall both be 5% to 7% (whole number). Paying units may determine the payment rate within the range at their own discretion.
(2) Additional Housing Provident Fund (AHPF) Payment Rates
Paying units may opt to participate in the additional housing provident fund system on a voluntary basis, with the payment rates of employees and units for the additional housing provident fund both ranging from 1% to 5% (whole number). Actual rates shall be decided on by the units according to their actual situation.
(3) Reduced Payment Rate or Prolonged HPF Payment
Applications may be submitted by eligible enterprises as necessary for approval of reduced payment rate or prolonged HPF payment pursuant to relevant rules specified in SHGJJG No.7 (2018).
4. Calculation of Housing Provident Fund Monthly Payment Amount
Housing provident fund monthly payment amount = the payment base multiplied by the employee’s housing provident fund payment rate + the payment base multiplied by the unit’s housing provident fund payment rate. The same method applies to the calculation of the additional housing provident fund monthly payment amount.
5. Upper and Lower Limits of Monthly Payment Amounts
The upper and lower limits of monthly payment amounts shall be released to the public for implementation on 1st April 2019.
(1)To synchronize housing provident fund payment base adjustment timing with the timeline for social security contribution base adjustment for customers’ convenience and business environment optimization, , all units are required to proceed with adjustment of the upper and lower limits of monthly payment amounts as well as the payment bases and rates as of 1st April 2019. All units should get well prepared for the fund and budget for 2019’s fiscal year base adjustment in advance for protection of paying employees’ legitimate rights and interests.
(2) Adjustment of payment base for fiscal year 2019 shall mainly adopt the webpage processing approach. All units should proceed by clicking on the special column icon for Payment base Adjustment on Shanghai Housing Provident Fund Website (www.shgjj.com) to read, download and process the annual payment base adjustment directly.
Please be notified and proceed accordingly.
Shanghai Housing Provident Fund Management Committee
30th January 2019