The State Council promulgated the Decision on Amending the Regulations on the Administration of Housing Provident Funds

On 10 August 2026, the State Council promulgated the Decision on Amending the Regulations on the Administration of Housing Provident Funds (the “Decision”), which took effect on 20 September 2026. The Decision provides that the housing provident fund contribution rates for both employers and employees shall be no less than 5% of the employee’s average monthly salary for the previous year and shall not exceed the maximum contribution rate prescribed by the State.

The Decision also expands the permitted scope of housing provident fund withdrawals to include renovation of self-occupied housing and payment of property management fees for self-occupied housing. In addition, individual business operators, part-time employees and other individuals in flexible employment may voluntarily participate in the housing provident fund scheme.

The Decision further increases the penalties for employers that fail to complete housing provident fund contribution registration or establish housing provident fund accounts for employees. Where an employer fails to rectify such non-compliance within the prescribed period after being ordered to do so, the applicable fine will increase from RMB 10,000–50,000 to RMB 50,000–300,000.

Key Action Points

The amended Housing Provident Fund Regulations took effect on 20 September 2026. Employers may wish to review their existing contribution arrangements to confirm that eligible employees are properly registered, individual accounts are established as required, and contributions are made on time and in full. Particular attention may be given to historical non-compliance, including missing registrations, underpayments, delayed contributions and arrangements involving third‑party entities, especially given the significantly increased penalties for certain registration and account‑opening failures.

In light of the enhanced regulatory scrutiny, employers are also encouraged to strengthen internal compliance reviews and record‑keeping, update relevant HR guidance where appropriate, and monitor local implementing rules and enforcement practices. This is particularly important as housing provident fund authorities will establish credit records and share relevant public credit information through the national credit information sharing platform.