Beijing will change its housing accumulation fund policies from July 2008, unifying the fund ratio to 12 percent to ensure fairness, said Li Chiying, a spokesperson for the city's housing provident fund management center, yesterday.
The fund ratio will be 12 percent as of July 1 and the monthly ceiling will be set at 2,392 yuan ($341.64), 226 yuan more than last year, according to the center, which adjusts the figures annually.
The personal housing accumulation fund is deducted from an employee's monthly salary within a ratio of eight to 12 percent, with most enterprises paying a ratio of eight percent for their employees.
The move is based on the principle of fairness and will help middle- and low-income families acquire housing, Li said.
Employees in Beijing whose fund ratio was between eight and 12 percent will see their housing fund increase monthly from July, he added.
For example, if a worker earns 3,322 yuan a month, the average monthly salary in Beijing in 2007, he will get an additional 3,189 yuan a year when his fund ratio is raised to 12 percent from eight percent.
The personal housing accumulation fund refers to an undetermined amount of money deducted from a worker' wages and deposited every month. It is exclusively for the purchase of residential homes and is paid off and returned to workers in one lump sum when they leave the office or retire.