The "new reform" of the provident fund is equivalent to a wage increase, which is related to the homeless
On the issue of whether the provident fund system should be abolished, Dong Mingzhu, a well-known entrepreneur, publicly expressed support for Huang Qifan's proposal and advocated the abolition of the housing provident fund system. She bluntly pointed out: "The housing provident fund system lacks practical utility and should be abolished." The reason she gave was that Gree Electric would provide housing directly for employees in the future, so employees would not need to rely on the provident fund. In addition, the provident fund system has caused a considerable financial burden on many businesses, and abolishing it will help to "reduce the burden" on enterprises.
According to authoritative data from the National Bureau of Statistics, the cumulative contribution amount of the national housing provident fund in 2022 will be as high as 3.2 trillion yuan, involving 169 million employees. Considering that the total number of employees in China is close to 800 million, this means that only about one-fifth of employees participate in the contribution of the housing provident fund. This data not only reveals the limitations of the provident fund system in terms of coverage, but also highlights the urgent need for reform.
Is it true that as Dong Mingzhu said, the provident fund is worthless and the employees are disdainful? This is obviously a misunderstanding. As a seasoned professional, I would like to clarify the fact that it is not that employees are dismissive of CPF, but that many companies are stingy with CPF contributions for their employees. In the face of this attitude of the enterprise, what can employees do?
Looking back on my career and the experience of interacting with many companies, I find that there are very few companies that can contribute to the CPF of new employees at the beginning of their employment. Such companies can be called the "conscience of the industry", and most companies choose to only pay the provident fund for old employees, or even ignore this benefit altogether. For the majority of ordinary employees, the provident fund is undoubtedly a real welfare policy. Although on the surface, it seems that his real income has decreased, in reality, the amount of CPF contributions is twice as much as his own, which is undoubtedly a lot of wealth.
CPF can be used for a wide range of purposes, not only for housing loans, but also for renting, building houses, and treating diseases. Even if you don't need these for the time being, you can choose to use them in the end. It is worth noting that the interest rate on a CPF loan to buy a house is usually much lower than that of a commercial loan, generally around 3%, while the interest rate on a commercial loan is generally above 4%. Therefore, CPF is not only a benefit, but also an benefit.
The provident fund has been "completely abolished"? What is the future of the rights and interests of 169 million people?
In recent years, the issue of the existence and abolition of the provident fund system has aroused widespread heated discussions, among which the remarks of entrepreneur Dong Mingzhu and well-known person Huang Qifan have attracted the most attention. Huang Qifan believes that the current property market is dominated by commercial loans, and the provident fund system has brought a lot of burden to enterprises. He proposed the abolition of the provident fund to reduce the pressure on the company, which in turn will promote the better development of the company, and ultimately benefit the salaries of employees. As an entrepreneur, Dong Mingzhu agrees with Huang Qifan's views and believes that this is undoubtedly a great benefit for the company.
However, behind this proposal, the vital interests of 169 million people are involved, and its impact is too wide to ignore. Fortunately, the State has given a clear answer.
In the latest "Opinions on Accelerating the Improvement of the Socialist Market Economy System" issued by the state, it is clearly pointed out that the "reform of the housing provident fund system" will be carried out. Reform means optimizing and upgrading on the existing basis, rather than simply abolishing it. This not only means that the provident fund system will not be abolished blanketly, but it indicates that it will continue to develop in a more mature and perfect manner. The purpose of such a reform is to balance the interests of enterprises and workers, not only to reduce the burden on enterprises, but also to ensure that the rights and interests of workers are not harmed.
Therefore, there is no need to worry too much about the majority of employees, and the state is actively seeking the best solution to ensure that the provident fund system can better serve the general public and achieve a harmonious and win-win situation between enterprises and employees.
With the reform of the housing provident fund system, the housing funds of 169 million people are about to increase in value
Huang Qifan and Dong Mingzhu's wish may not be realized, because in the past two years, more than 100 cities across the country have announced the latest plans for the reform of the housing provident fund system. It is remarkable that more than 80 cities have raised the proportion of housing provident fund contributions, including Chongqing, Shijiazhuang, Guangzhou, Sanya and other cities. It is worth mentioning that the adjustment in Sansha City is the most significant, as high as 4,250 yuan. Although Sansha may not be familiar to many people, as an emerging city established in 2012, it is responsible for the islands and reefs of Xisha Islands, Zhongsha Islands and Nansha Islands and their sea areas, with a land area of more than 20 square kilometers, a permanent population of more than 2,500 people, and a registered population of only 448 people. In the city, where most of the inhabitants are soldiers, veterans and fishermen, who have contributed greatly to the defense of the borders of the motherland, it is only natural that they enjoy a high standard of housing provident fund.
The reform of the housing provident fund system has officially kicked off, and the proportion of housing provident fund contributions across the country will usher in a new round of adjustment. This readjustment will undoubtedly bring tangible benefits to the workers of the vast number of enterprises. Increasing the contribution ratio of the housing provident fund is actually giving additional benefits to ordinary employees, thereby indirectly increasing their wages. In addition, with the gradual relaxation of restrictions on housing provident fund loans in various places, using the housing provident fund to buy a house will be able to save a lot of interest expenses. At the same time, the increase in the proportion of housing provident fund contributions also means a reduction in the monthly repayment amount, which brings greater financial pressure relief to home buyers.
At present, as many as 169 million employees actively participate in the payment of provident fund, which is equivalent to having a more substantial "wealth reserve". The usefulness of CPF should not be underestimated, whether it is used as a down payment on a home, a deposit for renting, or for home renovation and renovation, or even to cope with medical expenses. Therefore, the reform of the provident fund system has undoubtedly brought real benefits to the majority of employees.
The author has a different view on the call for the abolition of the provident fund system by some voices in the economics and business circles. While it is true that the abolition of the provident fund may reduce some of the financial burden on the enterprise, it is unknown whether the enterprise will increase the wages of its employees as a result. For the majority of employees, the abolition of the provident fund means the loss of an important welfare guarantee. In order to abolish the provident fund, there must be a mechanism that can fully replace it and effectively protect the interests of employees. However, such a mechanism is likely to be not far from the essence of the CPF.
The reason why the provident fund system can exist for a long time and continue to develop is precisely because it meets the practical needs of the majority of employees and protects their interests. The state has also attached great importance to this, and has continuously introduced new policies to improve and optimize the provident fund system. Therefore, the provident fund is by no means a policy that some entrepreneurs and economists can abolish lightly, and it is related to the vital interests of hundreds of millions of workers. We look forward to the new reform measures to better serve the majority of employees and play a greater role.