When many people are looking for a job, they attach great importance to whether the company can provide provident fund for themselves, because everyone knows that when buying a house, they can withdraw their provident fund or enjoy ultra-low mortgage interest rates.
In the near future, in July, many people's provident fund accounts will have an additional interest of several hundred or thousands of yuan. So the question is, what is going on with this settlement?
1. What is Housing Provident Fund?
The funds in the employee's personal housing provident fund account are mainly composed of two parts: one is the housing provident fund paid by the employee himself, and the other is the sum of the part paid by the employer for the employee when paying the salary and the part paid by the employee.
June 30 of each year is the interest calculation date of the provident fund, and the interest is calculated on a one-year cycle, from July 1 of the previous year to June 30 of the current year.
The amount deposited into the account is calculated according to the interest rate of the six-month fixed deposit, and after the interest is calculated, the interest will be automatically accumulated into the individual's housing provident fund account.
That is to say, the funds invested in the housing provident fund are essentially a form of savings, and the higher the contribution amount of the provident fund, the corresponding increase in the annual interest income it obtains.
2. Two aspects of determining the amount of provident fund
The amount of provident fund is related to which city and unit you work in.
The first is where you work, as different cities have different regulations on the monthly contribution base, contribution ratio and contribution limit of the CPF.
For example, the contribution ratio of Beijing and Shanghai is 5%~12% and 5%~7% respectively, while that of Shenzhen is 5%~20%. Therefore, you need to consider CPF as an important consideration when choosing a place to work.
Second, you need to see if your company is generous. Some companies will formulate the company's provident fund payment plan according to the local provident fund payment standard, so the specific amount of payment depends on the boss's generosity.
For example, in Shenzhen, if you have a monthly salary of 10,000 yuan, if the company unilaterally pays 8%, then the balance of the provident fund account is 1,600 yuan per month (800 for yourself and 800 for the company).
However, some companies may choose the lowest contribution ratio of 5%, the lowest contribution base of 2360, and the monthly provident fund account balance is only 283.2 yuan. Therefore, whether you are just starting out in the workplace or changing jobs, when talking about salary, you must not only look at the salary figures, but also look at the provident fund.
Third, the 7 major uses of the housing provident fund, I don't know if it's a big loss!
1. The housing provident fund can be used to buy a house. Whether it's a lump sum when buying a house in full, a down payment for a commercial loan, or a CPF loan to buy a house and repay the principal plus interest, these are all eligible ways to use it.
2. The housing provident fund can also be used for the construction, reconstruction or large-scale repair of one's own housing. Employees and their spouses are entitled to withdraw the corresponding provident fund to cover the expenses related to the dwelling in the case of construction, reconstruction or large-scale renovation of their own dwelling on rural collective land and a housing loan is adopted.
3. The provident fund is also applicable to rent payment. Whether it is economic rental housing provided by the government with rental subsidies or rental expenses for market rental housing, it can be covered by the provident fund.
4. Parents can also use their provident fund to help their children buy a house. As long as the relevant conditions are met, the parents' provident fund can be withdrawn as a source of funds for the purchase of their own home by their children.
5. If you decide to close your account, you can also withdraw all your CPF balance. If you leave your job, retire, move out of your household registration in the city, or even be included in the scope of minimum living security or special hardship assistance, you can withdraw all the balance of the provident fund as long as certain conditions are met.
6. For family members who are treated for major illnesses, they can also apply for the withdrawal of provident fund. If the employee and his/her spouse suffer from a major illness or undergo major surgery and hospitalization within one year from the date of discharge, they can apply for withdrawal of housing provident fund.
7. The housing provident fund can also be used to treat major diseases. Family members (including employees, spouses and minor children) who are hospitalized with major illnesses or major surgeries can apply for withdrawal of provident fund.
So, CPF can not only be used to buy a house, but it can also help us in many different scenarios. Of course, each provident fund has its specific conditions and regulations, and we need to operate according to the actual situation when using it.
Write at the end
To sum up, we can see that CPF is closely related to our lives, not only as a means of long-term savings, but also as a good help when we need it in life.
Therefore, we must not only know how to pay the provident fund, but also understand the operating principle and use skills of the provident fund, so that we can truly make the provident fund serve our lives.