Ceiling
The cap is progressive, and it is a ceiling
Article 6 of the 2021 opinion caps the total contingent fee by slices of the amount actually recovered, or the debt actually reduced. A firm may charge less. It may also charge a fixed sum instead of a percentage. It may not add the slices up past these rates.
- Up to 1,000,000 yuan: at most 18 percent of that slice.
- From 1,000,000 up to 5,000,000: at most 15 percent of that slice.
- From 5,000,000 up to 10,000,000: at most 12 percent.
- From 10,000,000 up to 50,000,000: at most 9 percent.
- Above 50,000,000: at most 6 percent.
The cap is on the total taken at every stage of the same contingent arrangement. It does not apply to a case type the opinion forbids from using a contingent fee at all.
- Ministry of Justice opinionThe source of the slices
Questions
Is 18 percent the fee I will be charged?
No. Eighteen percent is the top of the first slice. A filed firm schedule, and the contract you sign, can be lower.
Does the old 30 percent rule still apply?
The 2021 opinion is the later national text, and it uses the progressive cap above. Do not budget from a page that stops at 30 percent.