There are several grades of provident fund

Provident funds are divided into different grades, and the specific grade setting and standards vary from region to region. Generally speaking, the provident fund is divided into two grades: basic provident fund and personal account provident fund. The basic provident fund is paid by employers and employees according to a certain proportion, while the personal account provident fund is based on the actual salary level of individuals. The following is a detailed explanation of different grades of provident fund.

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1. basic provident fund

1. payment ratio: the payment ratio of basic provident fund is stipulated by local human resources and social security bureaus or relevant management institutions, generally including employers and employees. For example, employers and employees each contribute a certain percentage of the provident fund, such as 8% or 12%.

2. payment base: the payment base of basic provident fund is usually determined according to the salary level of employees, with certain upper and lower limits. The specific payment base standard is also stipulated by local governments.

3. scope of use: the basic provident fund is mainly used to provide basic social security for employees, including but not limited to housing, medical care and old-age care. This part of the provident fund is managed by the employer.

2. Personal account provident fund

1. Payment proportion: Personal account provident fund is paid according to a certain proportion according to the actual salary level of employees. Usually, employees pay a higher proportion, and employers also pay a certain proportion.

2. payment base: the payment base of personal account provident fund is generally based on personal actual salary and paid according to a certain proportion. This part of the provident fund is managed by the employee's personal account.

3. scope of use: personal account provident fund is mainly used for personal housing loans, house purchase, decoration and car purchase. This part of the provident fund is managed by personal accounts and has certain flexibility.

To sum up:

The provident fund has two grades: basic provident fund and personal account provident fund. The basic provident fund is mainly used to provide basic social security for employees, including housing, medical care and pension. Personal account provident fund is mainly used for personal housing loans, house purchase, decoration and so on. The setting and standards of these two grades are stipulated by local human resources and social security bureaus or relevant management agencies to ensure that employees can obtain comprehensive social security and flexible personal benefits.

Legal basis:

The legal basis of provident fund is mainly embodied in the Regulations of the People's Republic of China on Basic Old-age Insurance for Urban Employees and the Regulations of the People's Republic of China on Basic Medical Insurance for Urban Employees. These laws and regulations stipulate the framework and specific operating rules of the basic social security for employees, including the provisions on the payment ratio, payment base and scope of use of the provident fund. In the specific implementation, all localities will also issue relevant implementation rules and notices according to the actual situation.