Regulatory Framework

First law:1951.

Current laws:1953 (directive), 1978 (permanent employees directive), 1986 (contract workers directive), 1996 (directive), 2003 (work injury insurance regulations), 2004 (rural migrants directive), 2010 (revised work injury insurance regulations), and 2018 (contribution collection).

Type of program:Social insurance and employer-liability system.

Coverage

Social insurance:Employed persons in participating enterprises, public institutions, civil associations, privatenonenterpriseunits, foundations, law firms, and accounting firms.

Special systems for civil servants, including employees of government and communist party organizations, and cultural, educational, and scientific institutions.

Employer liability:Employees of enterprises not participating in the social insurance program.

Exclusion: Self-employed persons.

Source of funds

Insured person

Social insurance:None.

Employer liability:None.

Self-employed person

Social insurance:Not applicable; small business owners contribute as an employer.

Employer liability:Not applicable.

Employer

Social insurance:An average of 0.75% of payroll based on eight categories of industry and the assessed degree of risk.

Employer liability:The total cost.

Government

Social insurance:Provincial work injury insurance regulatory funds and local governments provide subsidies as needed; contributes as an employer.

Employer liability:None.

Qualifying conditions

Must be assessed with a work injury or occupational disease.

Cash benefits for insured workers (except permanent disability)

100% of the insured's wage is paid for up to 12 months; may be extended for 12 months.

Medical experts of the municipal Labor Ability Appraisal Committee assess the degree of disability. The benefit is suspended if the insured's disability is assessed as permanent.

Permanent disability benefits for insured workers

The benefit is awarded based on 10 assessed degrees of disability. For a total disability (degrees 1-4), a lump sum of 27 months of the insured's previous wage plus a pension of 90% of the insured's previous wage is paid (1st degree); a lump sum of 25 months of the insured's previous wage plus a pension of 85% of the insured's previous wage (2nd degree); a lump sum of 23 months of the insured's previous wage plus a pension of 80% of the insured's previous wage (3rd degree); or a lump sum of 21 months of the insured's previous wage plus a pension of 75% of the insured's previous wage (4th degree). If the permanent disability benefit is less than the local minimum wage, the work injury insurance fund pays the difference.

The benefit ceases when the insured becomes entitled to an old-age pension. If the old-age pension is less than the permanent disability benefit, the work injury insurance fund pays the difference.

To receive a benefit for a total disability (degrees 1-4), the insured and the former employer must contribute to the basic medical insurance program.

For a substantial permanent disability (degrees 5-6), a lump sum of 18 months (5th degree) or 16 months (6th degree) of the insured's previous wages is paid. If the employer cannot offer the insured an appropriate job, a monthly pension of 70% (5th degree) or 60% (6th degree) of the insured's wage before the disability began is paid.

Employers pay social insurance contributions for pensioners assessed with a 5th or 6th degree disability. If the permanent disability benefit is less than the local minimum wage, the employer pays the difference. If the insured voluntarily ceases the employment relationship with the employer, a lump-sum work injury medical treatment subsidy and a disability employment subsidy are paid. Provincial governments set the subsidy rates.

For a partial permanent disability (degrees 7-10), a lump sum of 13 months (7th degree); 11 months (8th degree); nine months (9th degree); or seven months (10th degree) of the insured's previous wages is paid. If the labor contract expires or the insured voluntarily ceases the employment relationship with the employer, a lump-sum work injury medical treatment subsidy and a disability employment subsidy are paid. Provincial governments set the subsidy rates.

For injured workers employed illegally and assessed with any degree of disability, employers must pay a lump-sum benefit that is at least the work injury benefit paid to legally employed workers.

The insured's previous wage is the insured's average monthly income in the last 12 months before the disability began. The previous wage used to calculate benefits must be 60% to 300% of the average monthly wage in the pooling area.

The minimum permanent disability benefit is the local minimum wage.

Medical experts of the municipal Labor Ability Appraisal Committee assess the degree of disability.

Medical benefits for insured workers

Benefits include treatment, surgery, nursing, medicine, appliances, rehabilitation, transportation, and hospitalization based on a list of approved diagnoses and treatments.

Survivorsbenefits for dependents

Survivor pension:40% of the deceased's average monthly wage in the last 12 months before death is paid to the widow(er); 30% to each additional dependent.

Widow(er)'s and orphan's supplements: 10% of the deceased's last monthly wage is paid.

Other eligible survivors include parents, grandparents, grandchildren, brothers, and sisters.

The maximum combined monthly survivor pension is 100% of the deceased's last monthly wage.

Death allowance:A lump sum of 20 times the national urban per capita disposable income of the previous year is paid.

The national urban per capita disposable income is 36,396yuan(2017).

Funeral grant:A lump sum of six times the local average wage in the previous year is paid.

Administrative organization

Department of Work Injury Insurance, under the Ministry of Human Resources and Social Security (http://www.mohrss.gov.cn/), provides general guidance for the social insurance program and ensures that local regulations follow central government guidelines.

Local government social insurance agencies and participating enterprises administer the programs.

Enterprises not participating in the social insurance program pay benefits directly to employees.

Local tax authorities under the State Administration of Taxation (http://www.chinatax.gov.cn/) collect contributions (as of January 2019).

Last survey reply:1 July 2018

Last ISSA update:1 July 2018

US$1.00 = 6.62yuan.

Source:https://www.issa.int/en/country-details?countryId=CN&regionId=ASI&filtered=false