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 - Housing National Requirement - Pension „h  ¡Ã‚ §Decisions of the State Council Concerning the Establishment of a Unified System of Basic Old-age Insurance for Staff and Workers of Enterprises ¡Ã‚ ¨(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 ¡Ã‚ ¦ 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  ¡Ã‚ §Unemployment Insurance Regulation  ¡Ã‚ ¨ issued by State Council on January 22, 1999. „h Mandatory participants - Requires mandatory participation by enterprises and employees; -  ¡Ã‚ §Enterprise ¡Ã‚ ¨ refers to  ¡Ã‚ §Urban enterprises and institutions ¡Ã‚ ¨, inc luding: a. State-owned enterprises; b. Urban collective enterprises; c. Foreign investment enterprises; d. Urban private enterprises; and e. Other urban enteprises -  ¡Ã‚ §Employee ¡Ã‚ ¨ refers to  ¡Ã‚ §Staff and workers of urban enterprises and institution ¡Ã‚ ¨ „h Contribution - Employer contribution - 2% of the total wages of the enterprises; - Employee contribution - 1% of the employee ¡Ã‚ ¦s wage National Requirement  ¡V Medical Insurance „h  ¡Ã‚ §Decisions of the State Council Concerning the Establishment of a Basic Medical Insurance System for Urban Staff and Workers  ¡Ã‚ ¨ issued by State Council „h Mandatory participants - Requires mandatory participation by enterprises and employees; -  ¡Ã‚ §Enterprises ¡Ã‚ ¨ refers to  ¡Ã‚ §all urban enterprises ¡Ã‚ ¨, 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. -  ¡Ã‚ §Employees ¡Ã‚ ¨ refers to  ¡Ã‚ §employees of the above-mentioned enterprises ¡Ã‚ ¨ „h Contribution - Employer contribution  ¡V approximately 6% of the total wages of the enterprises; - Employee contribution - 2% of the employee ¡Ã‚ ¦s wage National Requirement  ¡V Housing „h  ¡Ã‚ §Administrative Regulation on Housing  ¡Ã‚ ¨ issued by the State Council on April 3, 1999.