Adjustment of Contribution Base and Rates for Housing Provident Fund for 2020 in Shenzhen
According to the Notice on the Adjustment of Contribution Base and Rates for Housing Provident Fund issued by Shenzhen Housing Provident Fund Administration Centre on June 29, 2020, the following adjustments shall be implemented.
- Starting from July 1, 2020, the employer shall adjust the contribution base for Housing Provident Fund. The new contribution base is the average salary of the employee in 2019.
- The basis for calculation of contribution, however, should not be less than previous year’s lowest standard salary as announced by the labour department and should not be more than 3 times of previous year’s average monthly salary as announced by the statistic department.
- During the period from July 1, 2020 to June 30, 2021, the contribution base shall be between RMB2,200 and RMB31,938.
- The contribution rate for both employer and employee should be between 5% to 12%. The employer may adjust the contribution rate according to its own situation in July 2020.
- The above adjustments shall take effect from July 1, 2020 till June 30, 2021. The employer shall make up the balances if fails to make adjustment in July 2020.
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