Shenzhen Adopts New Housing Fund Rates
SHENZHEN, Nov. 15 –Shenzhen has adopted new contribution rates for the city’s housing fund, set to take effect on December 1, 2010.
The new rates will be from 5 percent to 20 percent as decided by the employer. The fund will use the average wage of the employee from the previous year as the lower base limit (the lowest base is the city’s minimum wage). The upper limit will be five times the average wage for urban employees in 2009.
According to the new measures, which have been passed in principle but have yet to be announced, each employee will only have one housing fund account and the previous housing fund with the Shenzhen Social Insurance Bureau will be transferred to the Shenzhen Housing Fund Management Center.
The housing fund is paid both by the employer and the employee and both Shenzhen residents and those from outside Shenzhen will be required to put money into the fund.
From December 1, 2010 until March 2011, the previous housing fund saved in Social Insurance Bureau will not be accessible. In March, it will be able to be drawn from the Shenzhen Housing Fund Management Center. Those who plan to draw out of the previous housing fund should begin procedures as soon as possible.
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