The housing provident fund is a long-term housing savings deposited by the unit and its employees. It is the main form of monetization, socialization and legalization of housing distribution.
The housing provident fund system is an important housing social security system stipulated by national law and is mandatory, mutually supportive, and protective.
Units and individual employees must fulfill their obligations to pay housing provident funds in accordance with the law.
The housing provident fund paid by individual employees and the housing provident fund paid by the unit for them are stored in special accounts and belong to the individual employees.
The units here include state agencies, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, institutions, private non-enterprise units, and social groups. The payment of housing provident funds stipulates the payment of housing provident funds by employees and units
The proportion shall not be less than 5% of the average monthly salary of employees in the previous year; in cities where conditions permit, the deposit proportion may be appropriately increased.
The specific payment ratio shall be formulated by the Housing Provident Fund Management Committee, and shall be submitted to the people's government of the province, autonomous region, or municipality directly under the Central Government for approval after review by the people's government at the same level.
If a unit fails to register the payment and deposit of housing provident fund or fails to complete the procedures for setting up housing provident fund accounts for its employees, the housing provident fund management center shall order it to be completed within a time limit; if it fails to do so within the time limit, a fine of not less than RMB 10,000 but not more than RMB 50,000 shall be imposed.
If the unit fails to pay the housing provident fund overdue or underpays the housing provident fund, the Housing Provident Fund Management Center shall order the unit to pay the housing provident fund within a time limit; if the unit still fails to pay the housing provident fund within the time limit, it may apply to the People's Court for compulsory enforcement.
Purpose of Housing Provident Fund The housing provident fund shall be used for the purchase, construction, renovation and overhaul of self-occupied housing for employees, and no unit or individual may misappropriate it for other purposes.
If an employee has any of the following circumstances, he or she may withdraw the balance in the employee housing provident fund account: (1) Purchase, build, renovate, or overhaul a self-occupied house; (2) Retire or retire; (3) Completely lose the ability to work,
and terminated the labor relationship with the unit; (4) leaving the country to settle down; (5) repaying the principal and interest of the house purchase loan; (6) rent exceeding the prescribed proportion of family wage income.
In accordance with the provisions of items (2), (3) and (4) of the preceding paragraph, when the employee housing provident fund is withdrawn, the employee housing provident fund account shall be canceled at the same time.
If an employee dies or is declared dead, the employee's heirs or legatees can withdraw the balance in the employee's housing provident fund account; if there is no heir or legatee, the balance in the employee's housing provident fund account will be included in the appreciation income of the housing provident fund.
Employees who have paid housing provident funds can apply for housing provident fund loans from the Housing Provident Fund Management Center when purchasing, constructing, renovating, or overhauling their own homes.
The Housing Provident Fund Management Center shall make a decision on whether to grant a loan or not within 15 days from the date of accepting the application, and notify the applicant; if the loan is granted, the entrusted bank shall handle the loan procedures.