The Chinese government has designed the Housing Provident Fund to help middle and low-income workers meet their housing needs. When employers fail to contribute, workers are denied the funds they are due to help them with the rent, maintenance, or purchase of their home. For this reason, the FLA expects that affiliated companies sourcing from China require full payment of Housing Provident Fund contributions.
FLA explains the history of the Housing Provident Fund, current provisions, and common violations found by FLA assessors in 2014 in our issue brief.