The housing fund contribution scheme deals with the amount that an employer shall contribute to the fund. A Circular was published this year, which has introduced changes to the scheme. The Beijing Municipal Housing Reform Office and Beijing Finance Bureau issued the Circular, which modifies the base for determining the amount an employer can contribute to the fund. In the new Circular the housing fund base is revised to three times the average monthly salary of all staff employed within the Beijing municipality area in the previous housing fund calendar year. The stipulated contribution rate is 8 %. The Beijing Local Census Bureau will revise the average monthly salary annually and the housing fund contribution is tax deductible.
