PRC Social Security Scheme :: essays research papers

PRC Social Security Scheme h Major Characteristic of PRC Social Security Scheme - Only applicable to Chinese local employees - Local requirements may vary from locality to locality. h Structure of Social Security Scheme - Pension - Unemployment Insurance - Medical Insurance - lodgment National sine qua non - Pension h Decisions of the State Council Concerning the Establishment of a Unified System of elementary Old-age Insurance for Staff and Workers of opening moves(July 16, 1997) h Structure of the Basic Pension Scheme - Requires mandatory participation by enterprises and employees - Comprises 2 elements a. Basic Pension Pooling Accountb. Basic Pension Individual Account h Enterprise Contribution - Maximum contribution of 20% of the total wages of the enterprises in general unless approved by Labour Bureau and Ministry of Finance. - For a foreign investing enterprise, the total wages only cover Chinese local employees wages. - Among the 20% contribution a. start at 7% of employ ee salary in 1997, to be stepwise reduced to 3%, for contribution into the Basic Pension Individual Account b. 13% to 17% goes to Basic Pension Pooling Account h Employee Contribution - get going at 4% of employee salary in 1997, to be gradually increased to 8% - Contribution goes to Basic Pension Individual Account National Requirement V Unemployment Insurance h Unemployment Insurance Regulation issued by State Council on January 22, 1999. h Mandatory participants - Requires mandatory participation by enterprises and employees - Enterprise refers to urban enterprises and institutions, including a. State-owned enterprises b. Urban collective enterprises c. Foreign investment enterprises d. Urban private enterprises and e. Other urban enteprises - Employee refers to Staff and workers of urban enterprises and institution h Contribution - Employer contribution - 2% of the total wages of the enterprises - Employee contribution - 1% of the employees wage National Requirement V Medical Insurance h Decisions of the State Council Concerning the Establishment of a Basic Medical Insurance System for Urban Staff and Workers issued by State Council h Mandatory participants - Requires mandatory participation by enterprises and employees - Enterprises refers to all urban enterprises, including a. State-owned enterprises b. Urban collective enterprises c. Foreign investment enterprises d. Urban private enterprises e. Government organizations, institutions f. Social organizations and g. Non-governmental non-enterprise units. - Employees refers to employees of the above-mentioned enterprises h Contribution - Employer contribution V approximately 6% of the total wages of the enterprises - Employee contribution - 2% of the employees wage National Requirement V lodgment h Administrative Regulation on Housing issued by the State Council on April 3, 1999.