Shanghai Provident Fund Deposit Policy Has Indeed Been Adjusted: "The Three Changes And Three Changes"

After deliberation and approval at the fifty-second meeting of the Shanghai housing provident fund management committee, the city has adjusted the deposit base, the deposit ratio and the upper and lower limit of the monthly deposit amount since July 1, 2016.

The housing provident fund deposit year refers to the year July 1st to June 30th of the following year.

According to the average wage level of Shanghai city released by the Bureau of social and economic development in 2015, since July 1, 2016, the deposit base of the workers' housing provident fund has been adjusted from the average monthly salary in 2014 to the average monthly salary in 2015.

Every year in July 1st, Shanghai has to adjust the base of the provident fund. However, this year Shanghai not only adjusted the base of the provident fund, but also adjusted the proportion of the supplementary provident fund, and set up the payment limit for the supplementary provident fund. The above "double restrictions" were carried out under the background of the adjustment of the deposit policy.

It should be noted that although housing provident fund does not belong to the scope of social insurance, it is by no means "payable or not paid".

Units do not register the housing provident fund in accordance with the law, or do not set up procedures for the housing provident fund accounts for their employees. If the housing provident fund is not paid in accordance with the law, or the housing provident fund is paid less, the municipal provident fund management center shall deal with it in accordance with the provisions of the housing provident fund regulation of the State Council.

According to the relevant provisions of personal income tax collection in China, the monthly housing provident fund is deducted from tax, that is to say, housing provident fund is not taxable.

In fact, some people reduce their wages by increasing their housing provident fund, thereby reducing the personal income tax payable.

But before that, the starting point of personal tax collection has changed.

According to the notice of the Ministry of Finance and the State Administration of Taxation, "units and individuals shall not deduct within 12% of the average monthly salary of the employees themselves in the previous year. The actual housing provident fund is allowed to be deducted from the personal taxable income, but the excess will be included in the current income tax and the individual income tax shall be collected."

But this year Shanghai provident fund deposit policy has indeed been adjusted, which can be summarized as "three changes and three invariable".

Pay attention to one

The monthly deposit amount of housing provident fund = workers' monthly average wage multiplied by the proportion of workers' housing provident fund payment (calculated to yuan, less than four yuan five entry) + workers' monthly average wage multiplied by the unit housing provident fund deposit ratio (calculated to yuan, yuan to four homes five entry).

Supplementary housing provident fund monthly payment = employees themselves last month average

Multiplied by the proportion of workers' housing provident fund payment (calculated to yuan, four yuan less than five yuan) + workers monthly average wage per worker multiplied by the unit to supplement the housing provident fund deposit ratio (calculated to yuan, four yuan below five yuan).

Since July 1, 2016, the base of the Shanghai provident fund has been adjusted to 5939 yuan. However, the principle of determining the base of the deposit has not changed since the adjustment of the specific amount has been made, that is, the base of the housing provident fund should be determined according to the monthly average wage of the employees themselves in the previous year.

The wage base for calculating the monthly payment of housing provident fund should be consistent with the wage base of housing provident fund.

According to the notice of the Shanghai Municipal Bureau of human resources and social security on the matters concerning the average wage of workers in 2015, the average monthly wage of the workers in 2015 was 5939 yuan in 2015.

From January 1, 2016 onwards, the newly recruited workers should take the wage income of the workers in the second months of the work for the next month or take the monthly average wage that they have actually worked out since the new job as their base of housing provident fund; from January 1, 2016, the newly pferred workers will be pferred into the monthly wage income or the monthly average wage they actually send as the base of housing accumulation fund.

The average monthly wage of workers is calculated according to the statistics of the total wage statistics stipulated by the State Statistical Bureau, including wages, bonuses, allowances, subsidies and so on.

In addition, the workers who have established labor relations with the unit are still paid jobs by the unit after the work-related injuries are still paid by the unit. The base of the monthly payment of the housing provident fund is still calculated according to the monthly average wage income of the workers in the previous year. The number of the deposit base for the monthly payment of the housing accumulation fund for workers is calculated by the disability allowance per worker's monthly allowance instead of the wage income.

Focus on two

The proportion of supplementary provident fund has changed, and the proportion of provident fund has remained unchanged.

In 2016, the proportion of housing provident fund in Shanghai was 7% and 7% respectively.

Supplementary housing provident fund deposit ratio is 1%-5% per unit (positive integer), staff 1%-5% (positive integer), units and workers paid part of the total staff members are all personal accounts, accounting for staff and workers to supplement housing provident fund accounts.

According to the actual situation, the unit can determine the proportion of the units and workers to pay the supplementary housing provident fund between the 1%-5%, and the proportion of the payment of the unit and the workers should be the same.

The Ministry of construction, the Ministry of Finance and the people's Bank of China on the guiding opinions on some specific issues of housing provident fund management (Jian Jin pipe No. [2005]5).

Stipulates: the district cities (including land, state, league, and the same below) should take into consideration the local economic and social development, take overall consideration of the affordability of all aspects, and strictly determine the proportion of housing provident fund deposit in strict accordance with the procedures stipulated in the regulations.

The ratio of units and workers should not be less than 5%, which is not higher than 12% in principle.

But the original provident fund of different provinces and cities in China

Management gap is huge, for example, the highest deposit ratio in Beijing is 12%, the highest proportion in Shenzhen and Guangzhou is 20%, and the highest proportion in Suzhou Industrial Park is 25%.

The proportion of the original housing provident fund in Shanghai is 7% per unit, but the proportion of paying the unit and individual of the housing provident fund is within the range of not less than 8%, not less than 1%, and is determined by the unit itself.

In April 13th, the Executive Council of the State Council decided to standardize the proportion of housing provident fund payment, and regulate the adjustment above 12%.

The State Council standardizing the proportion of housing provident fund payment is mainly aimed at limiting high income and avoiding tax evasion.

As pointed out by the Ministry of Finance on strengthening the management of housing provident fund and other related issues (Financial Affairs (2006) thirty-eighth), it is necessary to prevent some areas, industries, departments and units from increasing the proportion of housing provident fund payment and increasing the number of deposit base, so as to provide subsidies for the employees to lose money, avoid tax, and then expand the income distribution gap between workers in different regions, industries and units.

The financial departments at all levels should actively cooperate with the construction departments, and urge all departments and units in the region to strictly enforce the provisions of [2005]5.

In Shanghai 2016, the proportion of housing provident fund paid by employees themselves and units is 1% to 5%.

From 1% to 8% adjusted to 1% to 5%, this is a major change.

But the housing provident fund deposit ratio is still 7%.

Because the sum of the two does not exceed 12% of the State Council's regulations.

It is also necessary to note that the units participating in the supplementary housing provident fund can not selectively reserve housing provident fund for some workers.

The units participating in the supplementary housing provident fund system should, in principle, pay the supplementary housing provident fund for all the staff members who establish their labor relations, that is, the number of workers who have to pay for the housing provident fund should be consistent with the number of workers in the housing provident fund.

Focus on three

Supplementary provident fund added ceiling, provident fund set limits unchanged

2016 housing provident fund monthly deposit amount is set on the upper and lower limit, the monthly deposit limit is 2494 yuan, the lower limit is 282 yuan.

The monthly payment amount calculated according to the regulations shall be determined according to the actual amount, if the upper limit or the lower limit is exceeded, only the upper limit or the lower limit can be determined.

At the same time, supplementary housing provident fund according to the workers themselves and units 1% to 5% of the deposit ratio corresponding to the monthly deposit limit of 1782 yuan.

The so-called ceiling is no more than 3 times the average monthly salary of the workers in the previous year.

The so-called lower limit does not exceed the minimum wage standard of the whole city in the previous year.

The ceiling for payment of supplementary provident fund is another major change this year.

Although the ratio between Shanghai's supplementary provident fund and the provident fund is not very high, there is a difference between the upper and lower limit of the provident fund's deposit amount.

However, since July 1st this year, the Shanghai provident fund and the supplementary housing provident fund have set the upper limit on the monthly deposit amount, while the reserve fund has been set up with the upper and lower limit unchanged.

In Shanghai, when the supplementary provident fund was less than 5%, it was allowed to be deducted from personal taxable income. When the proportion of supplementary provident fund exceeded 5%, more than part of the housing provident fund paid by units and individuals would be merged into wages and salaries, and personal income tax should be assessed.

Therefore, the adjustment of Shanghai provident fund deposit policy, in general, the impact is limited.

For most workers who only pay basic provident fund or supplementary provident fund, the proportion of workers who pay less than 5% has little impact.

As for the second half of last year, the lower limit of the reserve fund in the industry will be adjusted to the minimum wage standard of the city for the previous year, which is 60% of the average wage of the workers in the previous year.

In addition, in accordance with the provisions of the situation, it is still possible to apply for the reduction of housing provident fund deposit or the delayed housing provident fund in accordance with the notice of the Ministry of housing, urban and rural construction, the development and Reform Commission, the Ministry of Finance and the people's Bank of China on the regulation and phased reduction of the proportion of housing provident fund payment and the relevant provisions of this Municipality.

It can be seen that the policy adjustment of the relevant government departments is still prudent, taking into account the affordability of enterprises and employees under the current downward trend of the economic situation, and letting workers take more cash as much as possible.