Social Security

Aims of SPF
The Park implements a comprehensive social security system--SIP Provident Fund (SPF). It combines the management of three major social security elements--housing, medical care and retirement. It encourages individuals to be prudent in consuming housing and medical benefits.

SPF is the first of its kind in China. It models after Singapore's Central Provident Fund (CPF) and aims to:
1 Set up a new social security system based on deposit in advance, so as to protect the legitimate rights and interests of employees, reduce the social burden of employers and maintain social stability;
2 Accelerate the pace of social security system reform fitting in with socialist market economy;
3 Promote reasonable flow of talents, sustain economic growth and create an internationally competitive investment environment.

How SPF Works

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Employee

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Employer

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Individual Account
Consolidated Fund 5% Retirement Account 4% Medisave Account 8-16% (depending on age) Ordinary Account 75-83%
Use of SPF Savings
Transition Management (handled by SPF Center) Withdrawable only after retirement Major Hospitalization Insurance (4%); Outpatient Purchase & Rental (for non-Suzhou residents) of housing


SPF Today
Since its implementation, 160 foreign-invested enterprises involving 15,333 employees have joined the scheme. 40,522 person times have used SPF savings to pay for medical care and 2,356 people purchased housing. The scheme has made it a reality that "The old can live on a pension, the sick can get medical care, the tenant can buy a house."

SPF contributions are a tax-deductible expense (for employer), and a non-taxable income (for employee). SPF savings are also interest earning.

SIP Public Housing
To make housing affordable to ordinary employees, SIP has developed public housing on a large scale. It includes Xincheng Garden, Xinjia Garden, Jiacheng Garden, Xinxin Garden, etc.

Take Xincheng and Xinjia for an example. The projects, developed by SIP Real Estate Development Co., Ltd., cover an area of 32 ha, providing 5,000 units of apartments. Almost all the completed apartments have been sold out.

SIP also develops medium-luxury housing, such as Lakeview and Orchard Manors, to meet different customer needs. Many public housing in the Park boasts good quality, rational design layout, beautiful environment and attentive services.