Social Insurance Law of the People's Republic of China

        Order No. 35 of the President of the People's Republic of China

The Social Insurance Law of the People's Republic of China, which was adopted at the 17th meeting of the Standing Committee of the Eleventh National People's Congress of the People's Republic of China on October 28, 2010, is hereby published and shall come into force on July 1, 2011.

President of the People's Republic of China Hu Jintao

    October 28, 2010

        Social Insurance Law of the People's Republic of China

     (Adopted at the 17th meeting of the Standing Committee of the Eleventh National People's Congress on October 28, 2010) 

Contents

    Chapter 1    General Provisions

    Chapter 2    Basic Pension Insurance

    Chapter 3    Basic Medical Insurance

    Chapter 4    Work-related Injury Insurance

    Chapter 5    Unemployment Insurance

    Chapter 6    Maternity Insurance

    Chapter 7    Collection and Payment of Social Insurance Premiums

    Chapter 8    Social Insurance Funds

    Chapter 9    Handling of Social Insurance

    Chapter 10    Supervision of Social Insurance

    Chapter 11    Legal Liabilities

    Chapter 12    Supplementary Provisions

        Chapter 1    General Provisions

           Article 1     This Law is formulated in accordance with the Constitution for the purposes of regulating social insurance relationship, protecting the legal right and interest of citizens in participating in social insurance and enjoying social insurance benefits, enabling citizens to share the development achievements and promoting social harmony and stability.

       Article 2     The State establishes social insurance systems such as basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance and maternity insurance so as to protect the right of citizens in receiving material assistance from the State and the society in accordance with the law when getting old, sick, injured at work, unemployed and giving birth.

       Article 3     The social insurance system adheres to the principles of wide coverage, basic protection, multi-level and sustainability and the level of social insurance shall correspond to the level of economic and social development.

       Article 4     Employing entities and individuals within the territory of the People's Republic of China shall pay social insurance premiums in accordance with the law and shall be entitled to enquiry about payment records and personal interest records and request social insurance agencies to provide relevant services such as social insurance consultation.

    Individuals may enjoy social insurance benefits and are entitled to supervise the status of premium payment by their own entities for them in accordance with the law.

       Article 5     People's governments above the county level shall include social insurance undertaking in the national economic and social development plans.

    The State raises social insurance funds through multiple channels. People's governments above the county level shall provide necessary outlay support for social insurance undertaking.

    The State supports social insurance undertaking through tax incentive policies.

       Article 6     The State strictly regulates the social insurance funds.

    The State Council and the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government establish and improve the supervision and administration system of the social insurance funds, protect the security of the social insurance funds and ensure their effective operation.

    People's governments above the county level adopt measures to encourage and support all sectors of the society to participate in the supervision of the social insurance funds.

       Article 7     The social insurance administration departments of the State Council are responsible for the work with respect to the administration of social insurance throughout the country. Other relevant departments of the State Council are responsible for the relevant social insurance work within their respective scope of duties.

    Social insurance administration departments of the local people's governments above the county level are responsible for the work with respect to the administration of social insurance within their own administration regions. Other relevant departments of the local people's government above the county level are responsible for the relevant social insurance work within their respective scope of duties.

       Article 8     Social insurance agencies provide social insurance services and are responsible for work such as social insurance registration, personal interest records and payment of social insurance benefits.

       Article 9     The trade unions protect the legal interest of the workers in accordance with the law and are entitled to participate in the study of major social insurance issues, join the social insurance supervision commissions and supervise issues relating to the social insurance interest of the workers.

        Chapter 2    Basic Pension Insurance

       Article 10     Workers shall participate in basic pension insurance and the basic pension insurance premiums shall be paid jointly by the employing entities and the workers.

    Sole proprietors who are not employed, non-full time practitioners and other workers in flexible employment who have not participated in the basic pension insurance in the employing entities may participate in basic pension insurance and pay the basic pension insurance premiums on their own.

    Measures for the pension insurance of civil servants and staff governed by the civil servant laws shall be prescribed by the State Council.

       Article 11     Basic pension insurance involves both social coordination and personal accounts.

    The basic pension insurance fund is made up of payment from the employing entities and individuals and government subsidies.

       Article 12     An employing entity shall pay the basic pension insurance premium, which shall be included and recorded in the basic pension insurance coordination fund, according to a ratio of the total wage of the worker of the entity that is stipulated by the State.

    A worker shall pay the basic pension insurance premium, which shall be included and recorded in the personal account, according to a ratio of the wage of the worker that is stipulated by the State.

    Sole proprietors who are not employed or non-full time practitioners and other workers in flexible employment who have not participated in the basic pension insurance in the employing entities but have participated in basic pension insurance shall pay the basic pension insurance premiums in accordance with the provisions of the State and such premiums shall be included and recorded in the basic pension insurance coordination fund and the personal accounts respectively.

       Article 13     The basic pension insurance premiums that shall be deemed to have been paid during the payment period before the workers of the State-owned enterprises and institutions participate in the basic pension insurance shall be borne by the government.

    In case the amount in the basic pension insurance fund is insufficient to make payment, the government shall provide the subsidy.

       Article 14     The amount in the personal account shall not be withdrawn in advance. The interest rate for the amount in the account shall not be lower than the bank's interest rate for time deposits. Interest rate tax is exempted. The balance in the personal account may be inherited after the death of the individual.

       Article 15     The basic pension is made up of the coordinated pension and the pension in the personal account.

    The basic pension is determined based on factors such as the individual's cumulative premium payment period, the wage from which premium payment is made, the average wage of the local workers, the amount in the personal account and the average life expectancy of the urban population.

       Article 16     An individual participating in basic pension insurance may collect basic pension on a monthly basis if the cumulative premium payment period reaches 15 years at the time the individual reaches the statutory retirement age.

    If the cumulative premium payment period is less than 15 years at the time the individual participating in basic pension insurance reaches the statutory retirement age, he/she may continue to pay the premium until the cumulative premium payment period reaches 15 years and then collect the basic pension on a monthly basis, or he/she may transfer to the new rural social pension insurance or the social pension insurance for urban residents and enjoy the corresponding pension insurance benefits in accordance with the provisions of the State Council.

       Article 17     If an individual who participates in basic pension insurance passes away due to sickness or reasons other than work, the family members of the deceased may collect funeral allowance and bereavement payment. The individual losing the capacity for work completely due to sickness or disability not caused by work before reaching the statutory retirement age may collect sickness and disability subsidy. The amount required shall be paid from the basic pension insurance fund.

       Article 18     The State establishes a normal adjustment mechanism for basic pensions, which increases the basic pension insurance benefits in a timely manner based on the growth of the average wage of the workers and the rise of prices.

       Article 19     The basic pension insurance relationship of an individual shall be transferred along with the shift of his/her employment away from the coordinated region but the premium payment period shall be accumulated. When an individual reaches the statutory retirement age, the basic pension will be calculated by phases but will be paid together. The specific measures shall be prescribed by the State Council.

       Article 20     The State establishes and improves the new rural social pension insurance system.

    The new rural social pension insurance involves a combination of personal payment, collective subsidy and government subsidy.

       Article 21     The new rural social pension insurance benefits are made up of basic pensions and pensions from the personal accounts.

    Rural residents who participate in new rural social pension insurance and meet the conditions stipulated by the State will collect new rural social pension insurance benefits on a monthly basis.

       Article 22     The State establishes and improves the social pension insurance system for urban residents.

    People's governments of the provinces, autonomous regions and municipalities directly under the Central Government may combine the implementation of social pension insurance for urban residents and new rural social pension insurance.

        Chapter 3    Basic Medical Insurance

       Article 23     Workers shall participate in basic medical insurance for workers. The employing entities and the workers shall jointly pay the basic medical insurance premiums in accordance with the provisions of the State.

    Sole proprietors who are not employed, non-full time practitioners and other workers in flexible employment who have not participated in the basic medical insurance in the employing entities may participate in basic medical insurance and pay the basic medical insurance premiums on their own.

       Article 24     The State establishes and improves the new rural cooperative medical system.

    The administrative measures for new rural cooperative medical care shall be prescribed by the State Council.

       Article 25     The State establishes and improves the basic medical insurance system for urban residents.

    The basic medical insurance for urban residents involves a combination of personal payment of premium and government subsidy.

    The portion of premiums that need to be paid by the individuals having minimum living security, the disabled losing capacity for work and elderly above 60 years old and minors in low-income families will be subsidized by the government.

       Article 26    The standards for benefits under basic medical insurance for workers, new rural cooperative medical insurance and basic medical insurance for urban residents shall be implemented in accordance with the provisions of the State.

       Article 27     If the cumulative premium payment period reaches the period stipulated by the State at the time the individual participating in basic medical insurance for workers reaches the statutory retirement age, he/she will no longer pay basic medical insurance premium after he/she retires and may enjoy basic medical insurance benefits in accordance with the provisions of the State. If the cumulative premium payment period has not reached the period stipulated by the State, he/she may continue to pay the premium until reaching the period stipulated by the State.

       Article 28     Medical expenses that conform to the drug catalogue, the treatment items and the standard of medical services and facilities for basic medical insurance and medical expenses for emergency treatment and rescue shall be paid from the basic medical insurance fund in accordance with the provisions of the State.

       Article 29     The portion of medical expense of the party participating in insurance that should be paid from the basic medical insurance fund shall be settled directly between the social insurance agency and the medical institution or the entity engaging in the drug business.

    The social insurance administration departments and the health administration departments shall establish the system for the settlement of medical expenses for medical treatment that is not received locally to make it easy for parties participating in insurance to enjoy basic medical insurance benefits.

       Article 30     The following medical expenses are not included in the scope of payment by the basic medical insurance fund:

    (1) expense that should be paid from the work-related injury insurance fund;

    (2) expense that should be borne by a third party;

    (3) expense that should be borne by the public health authority;

    (4) expense for medical treatment overseas.

    If medical fees should be borne by a third party in accordance with the law but the third party refuses to make the payment or the third party cannot be ascertained, the fee will first be paid from the basic medical insurance fund. The basic medical insurance fund is entitled to claim the amount from the third party after making the payment first.

       Article 31     A social insurance agency may sign a service agreement with a medical institution or an entity engaging in the drug business based on the need of the management services so as to regulate medical services and practices.

    A medical institution shall provide reasonable and necessary medical services for the party participating in insurance.

       Article 32     The basic medical insurance relationship of an individual shall be transferred along with the shift of his/her employment away from the coordinated region but the premium payment period shall be accumulated.

        Chapter 4    Work-related Injury Insurance

       Article 33     Workers shall participate in work-related injury insurance and the work-related injury insurance premiums shall be paid by the employing entities. The workers need not pay the work-related injury insurance premiums.

       Article 34     The State determines the different rates of premiums for different industries based on the level of work-related injury risk in the industries and determine the rate scale within each industry based on the utilization of the work-related injury insurance fund and the incidence rates of injuries. The different rates of premiums for different industries and the rate scale within each industry shall be determined by the social insurance administration departments of the State Council and shall be reported to the State Council for approval before publication and implementation.

    A social insurance agency shall determine the rate of premium paid by an employing entity based on the utilization of the work-related injury insurance fund by the employing entity and the incidence rates of injuries of the employing entity and the rate scale of the industry to which the employing entity belongs.

       Article 35     An employing entity shall pay the work-related injury insurance premium based on the total wage of the worker in the entity and the premium rate determined by the social insurance agency.

       Article 36     A worker injured in an accident due to work or suffering from an occupational disease and is identified as being injured at work shall enjoy work-related injury insurance benefits. A worker identified as losing the capacity for work after the assessment on capacity for work is conducted shall enjoy disability benefits.

    The method of the identification of work-related injury and assessment on capacity for work shall be simple and convenient.

       Article 37     A worker who passes away or gets injured at work due to any of the following situations is not identified as suffering from work-related injury:

    (1) committing a criminal offense intentionally;

    (2) getting drunk or taking drugs;

    (3) inflicting harm on himself or committing suicide;

    (4) Other situations prescribed by the provisions of the laws and administrative regulations.

       Article 38     The following fees arising from work-related injuries shall be paid from the work-related injury insurance fund in accordance with the provisions of the State:

    (1) medical fees and rehabilitation fees for the treatment of work-related injury;

    (2) meal allowance during hospitalization;

    (3) fees for transportation, accommodation and meal when receiving medical treatment outside the coordinated region;

    (4) fees required for the installation of aids and appliances for the disabled;

    (5) fees for daily care confirmed by the committee assessing the capacity for work for those who cannot take care of themselves;

    (6) one-off disability allowance and disability subsidy collected on a monthly basis by workers with classes 1-4 disability;

    (7) one-off medical allowance upon termination or rescission of the labor contract;

    (8) funeral allowance for the family members of the deceased, bereavement payment for dependant relatives and allowance for work-related death in case of work-related death;

    (9) fee for the assessment of capacity for work.

       Article 39     The following fees arising from work-related injuries shall be paid by the employing entities in accordance with the provisions of the State:

    (1) wages and welfare during the treatment period of the work-related injury;

    (2) disability subsidy collected on a monthly basis by workers with class 5 or 6 disability;

    (3) one-off employment allowance for the disabled upon termination or rescission of the labor contract.

       Article 40     A worker who suffers from work-related injury and meets the conditions for collecting basic pension will stop receiving the disability subsidy and enjoy the basic pension insurance benefits. In case the basic pension insurance benefits are less than the disability subsidy, the difference shall be made up by the work-related injury insurance fund.

       Article 41     If the employing entity in which the worker works does not pay the work-related injury insurance premium in accordance with the law and a work-related accident that cause injury occurs, the employing entity shall pay the work-related injury insurance benefit. If the employing entity refuses to make the payment, the payment shall first be made from the work-related injury insurance fund.

    The work-related injury insurance benefits paid from the work-related injury insurance fund shall be repaid by the employing entity. If the employing entity refuses to make the repayment, the social insurance agency may claim for the repayment in accordance with the provisions of Article 63 of this Law.

       Article 42     If the work-related injury is caused by a third party but the third party refuses to pay the medical fee for the work-related injury or the third party cannot be ascertained, the fee will first be paid from the work-related injury insurance fund. The work-related injury insurance fund is entitled to claim the amount from the third party after making the payment first.

       Article 43     A worker who suffers from work-related injury shall cease to enjoy the work-related injury insurance benefits in any of the following situations:

    (1) he/she has lost eligibility to enjoy the benefits;

    (2) he/she refuses to undergo the assessment on capacity for work;

    (3) he/she refuses to receive treatment.

        Chapter 5    Unemployment Insurance

       Article 44     Workers shall participate in unemployment insurance and the unemployment insurance premiums shall be paid jointly by the employing entities and the workers in accordance with the provisions of the State.

       Article 45     An unemployed person meeting the following conditions may collect unemployment insurance compensation from the unemployment insurance fund:

    (1) the employing entity and the unemployed person has paid the unemployment insurance premiums for one year before the person becomes unemployed;

    (2) the unemployed person unintentionally terminates the employment;

    (3) the unemployed person has gone through the formalities for unemployment registration and is seeking employment.

       Article 46     If the employing entity and the unemployed person have paid the insurance premiums for one year or more but less than five years before the unemployed person becomes unemployed, he/she may collect unemployment insurance compensation for at most 12 months. If the cumulative premium payment period reaches five years but is less than ten years, the unemployment insurance compensation may be collected for at most 18 months. If premiums have been paid for more than ten years, the unemployment insurance compensation may be collected for at most 24 months. If the person becomes unemployed again after re-employment, the premium payment period will be calculated all over again, the period for the collection of unemployment insurance compensation this time together with the period during which unemployment insurance compensation may be collected but have not been collected for previous unemployment shall, in aggregate, be no more than 24 months.