What does the base of provident fund deposit mean?

The deposit base of provident fund refers to the basic salary of an individual in the first year of work as the payment base, and the subsequent base is the average of the total contributions in the previous year.

The monthly payment is the amount you pay yourself. Companies and individuals pay the same amount. The amount of provident fund paid each month is the base of payment multiplied by the proportion of payment.

The highest contribution ratio of the provident fund is 12%, and the lowest is 5%. The basic deposit ratio of housing provident fund for units and individuals is within the range of 5%- 12%, and the highest deposit ratio of housing provident fund for units and employees is not more than12%; Each deposit unit may, according to its own production and operation, appropriately reduce the deposit ratio of housing provident fund in stages, but the minimum deposit ratio shall not be less than 5%.

legal ground

"Regulations on the Management of Housing Provident Fund" Article 5 The housing provident fund shall be used for the purchase, construction, renovation and overhaul of owner-occupied housing by employees, and no unit or individual may use it for other purposes. Article 16 The monthly deposit amount of employee housing provident fund shall be the average monthly salary of the employee in the previous year multiplied by the deposit ratio of employee housing provident fund. The monthly deposit amount of housing provident fund paid by the unit for employees is the average monthly salary of employees in the previous year multiplied by the proportion of housing provident fund paid by the unit. Twenty-fourth employees in any of the following circumstances, you can withdraw the balance of storage in the employee housing provident fund account: