PRC Social Security Scheme
PRC Social Security SchemeBy: You Zhang
E-mail: [email protected]
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 - Housing National Requirement - Pension �h ��Decisions of the State Council Concerning the Establishment of a Unified System of Basic Old-age Insurance for Staff and Workers of Enterprises��(July 16, 1997) �h Structure of the Basic Pension Scheme - Requires mandatory participation by enterprises and employees; - Comprises 2 elements: a. Basic Pension Pooling Account b. 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 investment enterprise, the total wages only cover Chinese local employees�� wages. - Among the 20% contribution: a. start at 7% of employee salary in 1997, to be gradually reduced to 3%, for contribution into the Basic Pension Individual Account b. 13% to 17% goes to Basic Pension Pooling Account �h Employee Contribution - Start 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...
To view the complete essay, you be registered.