2018 Social Insurance Rates in China
Total Page:16
File Type:pdf, Size:1020Kb
P a g e | 1 2018 Social Insurance Rates in China February 27, 2019 1 P a g e | 2 Contents 1. An Overview of Social Insurance ............................................................................................... 4 2. Official Social Insurance Policy Documents from Recent Years ............................................... 6 3. Social Insurance Policies of each Province and City ................................................................. 9 Beijing ........................................................................................................................................ 10 Tianjin ........................................................................................................................................ 11 Shanghai ................................................................................................................................... 12 Chongqing ................................................................................................................................. 13 Henan ........................................................................................................................................ 13 Shandong .................................................................................................................................. 15 Gansu ........................................................................................................................................ 17 Anhui ......................................................................................................................................... 19 Jiangsu ...................................................................................................................................... 20 Zhejiang ..................................................................................................................................... 25 Fujian ......................................................................................................................................... 29 Guangdong ................................................................................................................................ 30 Sichuan ...................................................................................................................................... 33 Tibet Autonomous Region ........................................................................................................ 35 Hainan ....................................................................................................................................... 36 Hebei ......................................................................................................................................... 37 Liaoning ..................................................................................................................................... 37 Heilongjiang ............................................................................................................................... 38 Inner Mongolia Autonomous Region ........................................................................................ 39 Guangxi Zhuang Autonomous Region ..................................................................................... 40 Ningxia Hui Autonomous Region .............................................................................................. 40 Jilin............................................................................................................................................. 41 Hunan ........................................................................................................................................ 41 Hubei ......................................................................................................................................... 41 Qinghai ...................................................................................................................................... 42 Yunnan ...................................................................................................................................... 42 Guizhou ..................................................................................................................................... 43 2 P a g e | 3 Shanxi ........................................................................................................................................ 43 Jiangxi ....................................................................................................................................... 43 Shaanxi ...................................................................................................................................... 44 Xinjiang Uyghur Autonomous Region ....................................................................................... 44 Housing Provident Fund ........................................................................................................... 45 4. The Current Situation of Information Disclosure Regarding Social Insurance Policy ............. 58 1) Ministries of Human Resources and Social Security Official Policy Documents Websites 59 2) Applying for Open Government Information from the Human Resources and Social Security Bureau of the Provincial and Municipal Levels through the Internet or by Mail ........ 70 The Current Circumstances Regarding Applying for Open Government Information ......... 72 3 P a g e | 4 2018 Social Insurance Rates in China February 27, 2019 Introduction This report was completed by China Labor Watch’s interns and volunteers. The report is divided into 4 parts: the first part is an overview of social security; the second part is about the policy documents regarding social security which have been launched in recent years; the third part reveals recent social security news about each province, city, autonomous region, and municipality; the fourth part is about policies related to the current situation regarding the openness of government information. For detailed information, please read the report. 1. An Overview of Social Insurance Social security, commonly referred to as the “five insurances and housing provident fund (wu xian yi jin),” is the social insurance system China created to deal with the risks of aging, losing the ability to work, etc. The social insurance discussed in this report includes old-age insurance, medical insurance, unemployment insurance, maternity insurance, work-related injury insurance, and housing provident fund. The section on old-age insurance also refers to a social insurance that guarantees a basic standard of living for workers after they have reached the state's prescribed labor discharge obligation, or left the labor position due to the loss of the ability to work. The insurance aims to enhance the ability of workers to reduce old-age risk, while making up for the lack of family pension. Medical insurance is a social insurance that provides medical expenses and services to workers who are within the legal scope when they are sick or injured. Work-related injury insurance, also known as occupational injury insurance, refers to a social insurance that allows workers (or their family members) to receive material assistance from the state if they suffer an accidental injury or contract an occupational disease at work and are therefore temporarily or permanently unable to work. Unemployment insurance is a social insurance that grants material assistance to workers who are within the legal scope when they lose their financial resources due to unemployment. Maternity insurance is a social insurance that provides necessary financial compensation and healthcare to pregnant women workers who temporarily stop working. The housing provident fund refers to the long-term housing deposits stored by state organs, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, institutions and their employees. According to the social insurance policy regulations, the fee that insured workers pay is based on last year’s average monthly wages; If an employee’s contribution base is higher than 300% of the city’s average monthly salary last year, the contribution base of this employee shall be determined at the rate of 300%. If an employee’s contribution base is lower than 60% of the city’s average monthly salary last year, the employee’s contribution base shall be determined at the rate of 60%. Each province and city decides their contribution base. Insured employees' 4 P a g e | 5 contribution base is determined using their average salary per month last year and contribute according to the prescribed rate. Employers should determine the payment wage base according to the sum of employee’s contribution base and pay for their insurance in accordance with the law. Example: In the Tibet Autonomous Region (T.A.R.), the average monthly salary for the previous year was 7,587 RMB. The highest fee was 7,587 RMB×300%=22,761 RMB per month. The lowest fee was 7,587 RMB×60%=4,552.2 RMB per month. Currently in Lhasa, for the industry workers’ old-age insurance, the employer must buy 19% and the individual worker pays 8%. So in Lhasa, the formula for the lowest amount an employer might pay is 4,552.2 RMB×19%. The formula for the highest amount an employer might pay is 22,761 RMB ×19%. The rate for work-related injury insurance is calculated according to the rate of the industry difference and rate within the industry1. Most