1. The balance and accumulation of the provident fund account are affected.
Provident fund is a long-term accumulated housing savings system, which is jointly paid by individuals and units to help employees solve housing problems. Once the provident fund is cut off for one year, individuals will not be able to continue to deposit funds into the provident fund account within this year, resulting in the stagnation of the account balance. This will directly affect the accumulation speed of personal provident fund and reduce the amount of available funds when buying a house or withdrawing the provident fund in the future.
Second, the financial support for buying a house and renting a house is limited.
Provident funds play an important supporting role in buying and renting houses. For those who intend to use provident fund loans to buy a house, the deposit period and balance of provident fund are important factors affecting the loan amount. When the provident fund is cut off for one year, when individuals apply for provident fund loans, they may not get the ideal loan amount or even the loan qualification because of insufficient payment period or balance. In addition, in terms of renting houses, some areas also provide a policy of provident fund to pay rent, and the severance of provident fund will make it impossible for individuals to enjoy the convenience brought by this policy.
Third, credit records and personal financial services are affected.
The payment of provident fund is also an important indicator to measure personal credit status. A year's interruption of the provident fund may lead to a bad personal credit record, which will further affect the application and use of other financial services. For example, when banks or other financial institutions apply for commercial loans, credit cards and other financial services, they may take the payment of provident fund as one of the basis for evaluating personal credit status. Therefore, the severance of the provident fund may increase the difficulty and cost for individuals to apply for financial services.
To sum up:
Interrupting the provident fund for one year will have many effects on the balance of personal provident fund account, financial support such as buying houses and renting houses, credit records and personal financial services. Therefore, it is suggested that individuals should try their best to keep continuous payment of provident fund when conditions permit to ensure that their rights and interests are fully protected.
Legal basis:
Regulations on the administration of housing provident fund
Article 14 stipulates:
Newly established units shall, within 30 days from the date of establishment, go to the housing provident fund management center to register the deposit of housing provident fund, and within 20 days from the date of registration, go to the entrusted bank to go through the formalities for the establishment of housing provident fund accounts for their employees.
In case of merger, division, cancellation, dissolution, bankruptcy, etc., the original unit or liquidation organization shall, within 30 days from the date of the above-mentioned situation, go to the housing provident fund management center to handle the change or cancellation of registration, and within 20 days from the date of completing the change or cancellation of registration, go to the entrusted bank to handle the transfer or sealing of the housing provident fund account for the employees of the unit with the audit documents of the housing provident fund management center.
Regulations on the administration of housing provident fund
Article 20 provides that:
The unit shall pay the housing provident fund in full and on time, and shall not pay it overdue or underpaid.
Units with real difficulties in depositing housing provident fund can reduce the proportion of deposit or defer payment after discussion and adoption by the workers' congress or trade union of the unit, and after examination by the housing provident fund management center and approval by the housing provident fund management committee; After the economic benefits of the unit improve, the deposit ratio will be increased or the overdue payment will be postponed.