On July 31, Beijing Municipal Housing Provident Fund Management Center issued the Notice on Issues Related to Contribution of Housing Provident Fund in 2024 (hereinafter referred to as the Notice). According to the Notice, the cap for the contribution of the housing provident fund for 2024 has been raised to CNY 35,283, an increase by CNY 1,392 from 2023.

Moreover, a 5 to 12-percent contribution ratio range will continue to be in effect for the housing provident fund in 2024. Every employer contributing the housing provident fund for its employees can independently determine the specific ratio within the prescribed range based on its own circumstances.

If an employer pays for the housing provident fund at a ratio of 12 percent, the maximum monthly payment amount shall be CNY 8,468, with the employer and the individual employee paying CNY 4,234 each. If an employer chooses the lowest ratio of 5 percent, the monthly maximum payment amount shall be CNY 3,528, with the employer and the individual employee paying CNY 1,764 each.

Beijing Municipal Housing Provident Fund Management Center also announced the minimum monthly contribution amount for the housing provident fund in 2024, which remains unchanged compared with last year. According to the Notice, the minimum monthly contribution amount shall be CNY 2,420, and the minimum monthly contribution amount for any employee receiving basic living expenses shall be CNY 1,694. For a newly accepted personal housing loan using the housing provident fund, the applicable amount of the monthly basic living expenses for calculating the loan amount of the borrower shall be CNY 1,694.

Each calculation period of the housing provident fund is from July 1 to June 30 of the following year. Therefore, the adjustments to the relevant standards of the housing provident fund, including the cap and floor of contribution, also start from July 1 of each year.

If an employer has difficulties in production and operation, it can apply to reduce the payment ratio for the housing provident fund to 1 to 4 percent or defer the payment through an online business platform. The approved payment ratio will be valid until the last month of a housing provident fund year. For example, if an employer made an application in August 2024, the validity period would be from August 2024 to June 2025; if the application is to be made in January 2025, the validity period will be from January 2025 to June 2025.

(Source: Beijing Daily App)