What is social contribution & housing fund in China

Both employers and employees must make regular contributions into the Housing Fund. The employer has to contribute between 5 percent and 25 percent of the employee’s average monthly salary of the previous year (i.e. from 1 January to 31 December). The actual percentage differs per city or province. The employee generally has to deduct from his wage an equal contribution, although again, this may differ per city. The monthly premium is determined by the employee’s average wage in the previous year and the statutory contribution ratio. The statutory maximum contribution amount is calculated based on the average monthly wage in the city or province for the previous year.