Dear customers,

Recently, Shanghai Municipal Public Housing Fund Administration Committee has issued “Circular on the Contribution Base and the Upper and Lower Limit of Public Housing Fund of 2014” [Hu Gong Ji Jing Guan Wei Hui (2014) No.6]. We hereby forward to you the document.

The Circular settles several issues as follows:
1. The contribution base of housing fund of 2014 shall be settled according to employee’s average monthly salary of 2013. For those who took their first job or joined the company after Jan. 1st, 2014, the contribution base shall be settled according to the salary of the second month or the average monthly salary actually paid after starting to work.

2. The contribution rate of housing fund is 7% for both the employees and companies in 2014. For companies which pay supplementary housing fund, the contribution rate of the supplementary fund shall be between 1% and 8% (positive integers only) for both sides.

3. The upper limit of the housing fund contribution is RMB 2116 Yuan and the lower limit is RMB 226 Yuan in 2014.

4. Employees shall be informed of the results within one month after the company has settled the housing fund premium.

5. During the period of contribution rate adjustment, Shanghai Municipal Public Housing Fund Management Center shall verify each entity’s housing fund contributions. If an entity pays housing fund (supplementary housing fund) for only a portion of its employees, once being investigated and confirmed, the entity shall be punished by Shanghai Municipal Public Housing Fund Management Center according to related regulations.

If you need the document concerning the contribution base and rate of housing fund of 2014, please check and download what you need on www.shgjj.com or www.efesco.com.

From now on, SFSC starts to accept the declaration of the contribution base of housing fund of 2014 from all companies. Please settle the new contribution base of all the Chinese employees, fill in the declaration form and chop with an official seal of your company. The deadline of declaration is July 15th. After July 15h, SFSC will declare the new contribution base to Shanghai Municipal Public Housing Fund Administration Center.

SFSC is ready to help entities handle both the housing fund contributions verification and declaration. If additional documentation for declaration is required, kindly please submit in a timely manner.

Should you need the Chinese or Japanese version of the above notice, please visit our website www.efesco.com.

Your kind cooperation is highly appreciated.

Shanghai Foreign Service Co., Ltd.

June 16th, 2014