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Many companies fail to pay the provident fund for the following reasons.

For many people, the provident fund has other functions besides loans to buy a house, but now many companies only pay employees five insurance benefits, not housing provident fund benefits. What is the reason? Let's take a look together.

The role of provident fund

Actually, there are three main reasons. First, the five risks are legal and the provident fund is illegal. Social security is compulsory payment by the state. All enterprises and employees have the obligation to pay fees. It is illegal not to pay, so regular enterprises will pay social security. However, the provident fund is neither statutory nor mandatory. If the unit gives it to you, it means that the welfare is good and it is not illegal to give it to you. Since it can be paid or not, some enterprises with poor benefits naturally do not pay.

Second, not paying the provident fund can save money. This is the most important reason for many enterprises. At present, the contribution ratio of provident fund is between 5%- 12%. For example, the monthly salary of employees is 5,000 yuan. If it is 12%, the enterprise will pay 600 yuan more every month. If the scale of the enterprise is 100 people, it will cost 60,000 yuan more each month, and 60,000 yuan can recruit 12 people. Therefore, enterprises can save a lot of money by not paying provident fund.

Of course, it is a good thing for employees to pay provident fund. Enterprises pay 600, individuals pay 600, and get more for one month 1200. Whether renting a house or buying a house, the pressure will be much less. Moreover, people with provident funds can easily apply for mortgages in banks, with a higher loan ratio and lower interest rates.

Third, some enterprises have a large proportion of migrant workers, and social security must be paid, but the provident fund has not increased wages. Many workers pay more attention to real wages when they come to work. The higher the actual salary, the easier it is to find people. These migrant workers are unwilling to pay the provident fund. They don't live in big cities and are of little use.

What is the function of provident fund?

1, loan to buy a house, apply for provident fund loan when buying a house, not only the interest is low, far lower than that of commercial loans, but also can be used to repay the mortgage;

2. If you buy a house, you can withdraw the money from the provident fund as the down payment of the house; If you don't buy a house, you can also withdraw the money from the provident fund at one time;

3. Rent a house. If you meet the requirements and have a formal rental contract, you can also rent a house with the provident fund;

4. In the treatment of major diseases, if the family members of the payer are unfortunately suffering from major diseases, they can apply for withdrawing the provident fund to pay for medical expenses and help reduce the burden;

5. Pensions, such as retirement, resignation and settling abroad. , you can apply for a one-time withdrawal of provident fund. For retirees, the role of one-time withdrawal of provident fund is considerable;

6, house decoration, decoration, house decoration will cost a lot of money, and the provident fund can also play a big role at this time.

How to collect the money in the provident fund?

1. First of all, employees who meet the requirements for collecting provident fund bring relevant materials to the provident fund management center to fill out the application form for collecting provident fund;

2. Then, the employee submits the application form to the unit for preliminary examination, and after passing the examination, the application form is stamped with the seal reserved by the unit in the bank;

3. After that, the application form stamped by the unit and the provident fund management center will be examined and approved;

4. After the approval, you can go to the bank to go through the formalities of withdrawing the balance of the provident fund.

Tips: not all cases can be withdrawn from the provident fund. You must withdraw the provident fund to pay the rent and mortgage, or the user has retired, enjoys the minimum living guarantee, and terminates the labor relationship with the unit.