Social Insurance Compliance in China

 

All Chinese employees and employers are required to pay the compulsory social insurance and other social benefits such as housing fund and the social security funds every month. The Chinese government has also made the efforts to make the money available to more individual house buyers. Housing fund is another social benefit for the staff to let them promote their housing standard. The specialized authorities make sure the compulsory social benefits under unified planning, and better manage and supervise the use of social security funds.

 

 

What are the Social Benefits ?

 

The compulsory social insurance is usually including:

- Pension, 

- Basic medical insurance, 

- Un-employment insurance, 

- Maternity insurance, 

- Work-related injury insurance. 

- Housing fund is mainly required by the staff in cities and towns.

 

 

Social Benefit = Social Benefit Base*Proportion

 

Generally speaking, for the newly hired staff, the social benefit base is related to the staff’s monthly basic salary and the regulated bases. The authorities announce a range base for the calculation every year. For the existing staff, the social benefit base is related to the staff’s average monthly income of last year and the regulated bases. The regulated base is usually adjusted every year.

 

The proportion is regulated by the local authorities according to the company circs and the regulations. For instance, the proportion of work-related injury insurance is based on the dangerous degree of work environment. The proportion is adjusted according to the new regulations.

 

The social benefits are usually divided between the employer and employee except for the comprehensive social insurance. However, the total social benefits are withheld and paid by the employer.