Survey of Chinese Social Security IMCS China Social

Survey of Chinese Social Security IMCS China Social Security Jack Wu

Observation n Through practice and exploration for nearly 20 years，a framework for the social security system centered on the social insurance of the workers and staff members in cities and towns, the minimum life security system of the urban residents and the social security in rural areas, has taken its initial shape in China. The Chinese trade unions have vigorously participated in and given impetus to the construction of the social security system，and have done a prodigious amount of effective work in this regard

Old Age Insurance n China is carrying out a new old-age insurance system under which the overall social planning has been combined with the personal accounts, with the government, enterprises and the workers and staff members bearing the costs based on reasonable ratios as respective accumulations. The old-age insurance premiums are jointly paid by the enterprises and the workers and staff members， with the enterprises paying 20% or so of the total wages and the workers and staff members paying 8% and，the old-age insurance personal accounts are established based on this figure.

Old Age Insurance: continued n Workers and staff members reaching the retirement age and who have paid the insurance premiums for 15 years will receive the benchmark old-age pensions on a monthly basis. The benchmark old-age pension consists of the basic old-age pension and the personal-account old-age pension. With reference to the price index for living expenses of the urban residents and based on the increase in wages of the workers and staff members, the state makes adjustment of the old-age pensions. Apart from the basic old-age insurance，the state ordains that qualified enterprises may establish annuities for workers and staff members and also encourages the individuals to improve their post-retirement living standard through commercial insurance and personal savings insurance.

Medical Insurance n China is carrying out the basic medical security system for urban and township workers and staff members that combines overall social planning with personal accounts. The costs are jointly paid mainly by the employing units and the workers and staff members. Fees paid by the employing units account for 6% or so of the total wages of the workers and staff members， the individual person pays 2% of his or her wage，and the retired personnel pay nothing. The personal account is aimed at the payment for small medical expenses such as outpatient costs, and the overall planning funds are used as payment for large medical expenses such as hospitalization expenses.

Medical Insurance: continued n The overall planning funds usually start the payment at the 10% of the average annual wages of the local workers and staff members as the lowest level， and the highest payment is usually some 4 times that of the average annual wages of the local workers and staff members. Enterprises in good conditions can also establish the complementary medical insurance for the workers and staff members. In the second half of 2007, China launched the basic medical insurance system for urban residents so as to provide healthcare for jobless urbanites (including children, elderly people).

Unemployment Insurance n The unemployment insurance premium is paid by the unit and the individual person jointly. The unit pays 2% of the total wages of the workers and staff members，and the individual person pays 1% of his or her own wage. The time limit for receiving the unemployment insurance money depends on the cumulative time of payment by the unit and the individual person.

Unemployment Insurance: continued n For the time of payment reaching 1 year but less than 5 years，the time limit for collecting the insurance money will not surpass 12 months the maximum；for the time of payment reaching 5 years but less than 10 years，the time limit will not surpass 18 months the maximum；and for the time of payment longer than 10 years，the time limit will not surpass 24 months the maximum. The unemployment insurance money is lower than the local minimum pay，yet higher than the minimum life security level of the urban residents.