The minimum housing provident fund contribution ratio is 5%. In other words, it only needs to be less than 5% of the average monthly income of workers in the previous year. The actual purchase quantity can also be adjusted according to the prerequisites of each city or city.
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In addition, if they meet the requirements, if they want to retire and settle abroad, etc., under this premise, employees can obtain their provident funds into their personal accounts.
The development of provident fund regulations in my country is still quite early. It is one of the important ways in the process of employee housing reform. It can also solve the problem of changing from the previous allocation of housing by the unit to the corporate approach to handling the supporting facilities of employee housing and resident housing.
Because the Provident Fund Management Measures are promulgated in accordance with the State Council Order, they belong to the rules and regulations of the State Council Order and have the characteristics of laws and regulations.
The scope of providing provident fund payments has also gradually expanded with economic and social development.
According to the relevant provisions of the Provident Fund Management Measures, the scope of deposits is limited to on-the-job employees in the urban area, including administrative institutions, every company in the urban area, private institutions, mass organizations, etc.
However, in the provident fund management measures and implementation rules implemented by each local government, the scope of deposits is extended to self-employed individuals and freelancers. However, since freelancers need to pay all provident funds themselves, their enthusiasm for payment is not very high.
The usefulness of deposit mainly lies in two aspects.
First, after paying the deposit, you can apply for a provident fund loan when purchasing a commercial house according to the requirements of the local provident fund system. The interest rate for applying for a provident fund loan is much lower than that of a commercial loan. This is also the biggest benefit after paying the provident fund. That is also
The biggest driving force for self-employed individuals and freelancers to pay provident funds.
Second, all Provident Funds that are managed through personal accounts, whether it is a part deposited by the company or a part deposited by other parties, are all personal property.
As long as you buy a commercial house, you can withdraw the provident fund every month to repay the housing loan. It can also be used as a savings for future emergency expenses without having to repay the loan.
For provident fund deposits, employees of the employing company use their own salary in the previous year as the payment base. For new employees or newly joined employees, the payment base is based on the individual's actual income in the previous month.
According to the relevant provisions of the Provident Fund Management Measures, the social security payment ratio of the provident fund is at least 5%. The maximum is required by the people's governments of provinces, municipalities, autonomous prefectures and municipalities. According to relevant regulations across the country, the maximum for administrative institutions and state-owned enterprises must not exceed 12%.
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Administrative institutions and state-owned enterprises are often subject to a maximum 12% relevant limit, usually to avoid the outflow of state-owned asset disposals and at the same time to ease the financial burden.
For other companies, such as private enterprises, foreign-funded companies, joint ventures, private schools, institutions, etc., the minimum deposit ratio is 5% and the maximum is 12%. However, for such companies, deposit ratios exceeding 12% can be exceeded, but the deposit ratio exceeds 12%.
The portion above the 12% social security payment ratio is taxed in accordance with national regulations.
The reason why such a requirement is issued is that the housing provident fund is usually included in the company's operating and management costs, that is, it is deducted before tax. Some companies pay more provident fund. The key is to reasonably save taxes, so they make an increase of more than 12%.
Part of it cannot be included in the operating costs of the enterprise and must be paid taxes according to regulations.
For self-employed individuals and freelancers, the minimum social security payment ratio is 10% according to Sichuan's requirements, and the portion exceeding 24% is taxed according to national regulations.
Freelancers with relatively high self-employed business income often want to pay provident funds out of their own interests.
On the one hand, it can solve the problem of housing provident fund loans when buying a house; on the other hand, it can reduce costs and effectively pay taxes.