Guiding Opinions on Several Issues Concerning the Management of Housing Provident Fund
 
Guiding Opinions on Several Issues Concerning the Management of Housing Provident Fund

To further improve the management of the housing provident fund, standardize the collection and use procedures, strengthen the risk prevention mechanism, safeguard the legitimate rights and interests of contributors, and fully leverage the role of the housing provident fund system, we hereby put forward the following opinions on several specific issues concerning the management of the housing provident fund:

　　1. State organs, state-owned enterprises, collectively-owned enterprises in urban areas, foreign-invested enterprises, privately-owned enterprises in urban areas, and other urban enterprises, institutions, non-profit organizations established by private entities, and social organizations (hereinafter collectively referred to as “units”) and their employees on the payroll shall contribute to the housing provident fund in accordance with the provisions of the “Regulations on the Administration of the Housing Provident Fund” (Decree No. 350 of the State Council, hereinafter referred to as the “Regulations”). In regions where conditions permit, urban units hiring migrant workers may have both the unit and the employee contribute to the housing provident fund. Urban individual business operators and self-employed professionals may apply to contribute to the housing provident fund; the monthly contribution base for these contributors shall be calculated based on their average monthly taxable income from the previous year.

　　II. Cities at the prefectural level (including prefectures, autonomous prefectures, and leagues—hereinafter the same) shall, in light of local economic and social development conditions, take into account the affordability of all relevant parties, and strictly follow the procedures stipulated in the Regulations to reasonably determine the housing provident fund contribution rates. The contribution rates for both employers and employees should not be lower than 5% and, in principle, should not exceed 12%. If a higher employer contribution rate is adopted to provide housing subsidies to employees, such practice must be clearly indicated in the individual accounts. Any housing provident fund contribution rates that have not been approved by the people's governments of provinces, autonomous regions, or municipalities directly under the central government in accordance with the prescribed procedures shall be corrected.

　　3. In principle, the monthly wage base for contributing to the housing provident fund should not exceed two or three times the average monthly wage of employees in the previous year, as published by the statistical authorities of the prefecture-level city where the employee works. The specific standards shall be determined by local authorities based on actual conditions. The employee’s average monthly wage shall be calculated according to the items included in the total wage statistics as stipulated by the National Bureau of Statistics.

　　4. All localities shall, in accordance with the provisions of the Regulations, establish and improve approval systems for units seeking to reduce their contribution rates or defer payment of housing provident fund contributions, clearly defining the specific conditions, required documents, and processing procedures. Without prior deliberation and approval by the unit’s employee congress or trade union, the Housing Provident Fund Management Committee and the Housing Provident Fund Management Center (hereinafter referred to as the “Management Center”) shall not approve reductions in contribution rates or deferrals of payments.

　　V. In the event that a unit undergoes merger, division, dissolution, bankruptcy, termination, or restructuring, it shall make up for any previously unpaid (including unpaid and underpaid) housing provident fund contributions for its employees. If a unit is unable to make up the housing provident fund contributions during merger, division, or restructuring, it must clearly identify the entity responsible for making such contributions before proceeding with the relevant merger, division, or restructuring procedures. Newly established units shall promptly complete the required procedures for housing provident fund contributions in accordance with applicable regulations.

　　6. The amount of housing provident fund that a unit is required to make up (including voluntary make-up contributions by the unit itself and compulsory make-up contributions ordered by the people’s court) may be determined in different ways depending on the actual circumstances: If a unit has never made any contributions to the housing provident fund, it shall, in principle, make up the contributions owed to employees starting from the month when the “Regulations” (State Council Order No. 262) were issued. If a unit has failed to make contributions to the housing provident fund according to the prescribed scope and standards for employees, it shall make up the contributions for those employees. In cases where the unit fails to provide information on employees’ wages or where employees dispute the wage information provided by the unit, the management center may calculate the make-up contributions based on the wages verified by the local labor and judicial authorities or on the average annual employee wage published by the statistical authority of the city where the unit is located.

　　7. If an employee meets the prescribed conditions and applies to withdraw the balance stored in their housing provident fund account, their employer shall issue a withdrawal certificate after verification. If the employer fails to issue such a withdrawal certificate for the employee, the employee may, with the required valid supporting documents, directly apply for withdrawal of the housing provident fund at the Management Center or at a bank authorized to handle such matters.

　　8. If an employee purchases, builds, renovates, or undertakes major repairs on a self-occupied residential property and has not applied for a personal housing provident fund loan, in principle, both the employee and their spouse may, within one year of the purchase, construction, or major repair, withdraw the entire balance stored in their housing provident fund account—in one lump sum or in installments—upon presentation of valid supporting documentation. The total cumulative withdrawal amount for both spouses shall not exceed the actual housing expenses incurred.

　　9. Migrant workers, individual business operators in urban areas, and freelancers who purchase a home for self-occupancy or build/construct a home for self-occupancy in their household registration location may, with the housing purchase contract, land-use certification, and other valid supporting documents, withdraw the balance stored in their own and their spouse’s housing provident fund accounts.

　　10. Employees who are receiving the minimum living allowance in urban areas; those who have terminated their employment relationship with their employer and remain unemployed, those who have partially or completely lost their ability to work, or those facing other sudden emergencies that have caused severe hardship for their families—upon providing valid supporting documentation and passing review by the management center—may withdraw the balance stored in their individual housing provident fund accounts.

　　11. If an employee’s former employer fails to handle the required changes in housing provident fund registration and account transfer procedures as prescribed, the employee may file a complaint with the Management Center or, with valid supporting documentation, directly apply to the Management Center for the account transfer procedures.

　　12. If an employee is transferred to another prefecture-level city, after the receiving unit has completed the procedures for establishing the employee’s housing provident fund account, the management center in the new place of employment shall issue a certificate of the new account and a request from the individual for transferring funds to the management center in the original place of employment. Upon verification by the management center in the original place of employment with the transferring unit, the necessary registration changes and account transfer procedures will be carried out. If the original account has already been sealed, the transfer procedures can be handled directly. In principle, account transfers should be conducted via bank transfer; if bank transfer is not feasible, funds may also be remitted via telegraphic transfer or mail transfer to the management center in the new place of employment. If the receiving unit has not yet established a housing provident fund system, the management center in the original place of employment may temporarily seal the employee’s account.

　　13. If an employee applies for a personal housing loan to purchase, build, renovate, or extensively repair a self-occupied home, the entrusted bank shall first offer a housing provident fund loan. The management center or the entrusted bank shall inform the employee in one go about the documents and materials that need to be submitted. After the employee submits the required documents and materials as requested, the loan procedures shall be completed within 15 working days. If the procedures are not completed within 15 days, with approval from the head of the management center, the deadline may be extended by an additional 5 working days, and the applicant shall be informed of the reasons for the extension. Employees may not apply for another housing provident fund loan before they have fully repaid their current loan.

　　14. Migrant workers, urban individual business operators, and freelancers who purchase self-occupied housing may apply for housing provident fund loans in accordance with the relevant regulations.

　　15. The management center and the entrusted bank shall, in accordance with the provisions of the entrusted loan agreement, rigorously review the borrower’s identity, repayment capacity, personal creditworthiness, as well as the legality and authenticity of the housing to be purchased or constructed. They shall also strengthen their scrutiny of the collateral and the guarantor’s ability to provide guarantees. Each loan must be approved on a case-by-case basis, and the bank must handle the loan procedures for each loan individually.

　　16. Loan funds shall be transferred into an account opened at a bank by the housing seller (or the housing seller’s agent) or by the party responsible for constructing or renovating the property; they may not be directly transferred into the borrower’s account nor paid to the borrower in cash.

　　17. If the borrower entrusts another person or an intermediary agency to handle the procedures on their behalf, they shall sign a written authorization letter. The Management Center shall establish a face-to-face interview system for borrowers to verify relevant information and guide borrowers to sign in person on documents such as the loan contract and the guarantee contract.

　　18. Localities shall formulate the maximum loan amount for housing provident fund loans based on the average prices of locally affordable housing or ordinary commercial housing and the average housing standards of resident households. The specific loan amount for individual employees shall be determined by comprehensively considering factors such as the purchase or construction price of housing, the borrower’s repayment capacity, and the balance in the borrower’s housing provident fund account.

　　19. If an employee uses a personal housing loan (including commercial loans and housing provident fund loans), both the employee and his or her spouse may, in accordance with regulations, withdraw the balance from their housing provident fund accounts to repay the principal and interest of the loan. Each withdrawal amount shall not exceed the current installment payment of principal and interest; for early repayment, the withdrawal amount shall not exceed the outstanding balance of the housing provident fund loan.

　　20. Employees who purchase self-occupied housing in a prefecture-level city other than the one where they currently contribute to the housing provident fund may apply for a housing provident fund loan through the management center in the location of the housing. The management center where the employee’s housing provident fund is currently deposited shall actively assist by providing proof of the employee’s housing provident fund contributions and by helping to assess the employee’s repayment capacity and personal creditworthiness.

　　These guidelines shall take effect from the date of their promulgation. Localities may formulate specific measures tailored to their actual conditions.

　　Ministry of Construction of the People's Republic of China

　　Ministry of Finance of the People's Republic of China

　　People's Bank of China