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      Notice on Release of HPF Management Measures of Shanghai Municipality on Payment Rate Reduction

      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 52nd 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. 

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