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document.writeln("From 1 April 1997, Provident Fund (PF), a new social security system, has been implemented in SIP. Under the PF system, both employers and employees contribute an equal share of 22% of monthly gross salary. The contributions are deposited into the SIP Provident Fund Management Center (PFMC). 95% of the contribution is credited to the individual employee's accounts, while 5% is put into consolidated fund.<br><br>The PF system is target to define the responsibilities of both the employer and the employee. It is to reduce the burden of employer but increases personal benefits for employee. It reduces employer's cost as compared to the contribution to employee's welfare outside of SIP. Different from the ordinary system outside SIP that most of the fund was contributed in a public account shared by everyone in the community, PF encourages the employee to accumulate his/her deposit in his/her personal account by hardworking and careful planning for the future. <br><br><br><font color=#666666><b>Noticeable features of the PF system in SIP</font></b> <br><br> It applies to PRC employees only, expatriate staff are not included;<br> Both employers and employees have to contribute to PF monthly;<br>The same contribution rate applies to employees of all ages, positions and salaries;<br>The PF contribution is subject to an upper limit and lower limit:<br>a) The upper limit of PF contribution will be RMB 3200 per month in 2002.<br>b) The lower limit of PF contribution will be RMB 380 per month in 2002. If the PF member's monthly contribution is lower than the lower limit, the balance against the lower limit shall be compensated by the employer;<br>The PF contribution base on the Gross Salary. Gross Salary includes bonuses, allowances and overtime pay;<br> Each member has his/her own individual PF account;<br> PF contribution is a tax-deductible expense for employer but a non-taxable income for employee;<br> PF savings are interest-bearing, but without tax on the interest;<br> PF savings are guaranteed by the Finance and Taxation Bureaus;<br>The members may withdraw funds from their own medical account to pay medical expenses not only for themselves but their children as well. When savings in their own general account reach certain amount, they can be used to pay for home loan or rental. ");
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