Presidential Decree of the People’s Republic of China (No. 35)
October 28, 2010
The Social Insurance Law of the People’s Republic of China, adopted at the Seventeenth Session of the Standing Committee of the Eleventh National People’s Congress on October 28, 2010, is hereby promulgated and shall come into effect as of July 1, 2011.
Hu Jintao
President of the People’s Republic of China
Social Insurance Law of the People’s Republic of China
Adopted at the Seventeenth Session of the Standing Committee of
the Eleventh National People’s Congress on October 28, 2010
Contents
Chapter I General Provisions. 3
Chapter II Basic Old-Age Insurance. 5
Chapter III Basic Medical Insurance. 8
Chapter IV Work Injury Insurance. 10
Chapter V Unemployment Insurance. 13
Chapter VI Maternity Insurance. 15
Chapter VII Collection and Payment of Social Insurance Contributions. 17
Chapter VIII Social Insurance Funds. 19
Chapter IX Social Insurance Operations. 21
Chapter X Social Insurance Supervision. 22
Chapter XI Legal Liabilities. 25
Chapter XII Supplementary Provisions. 27
Chapter I General Provisions
Article 1 This law is hereby enacted in accordance with the Constitution for the purposes of regulating social insurance relationships, securing citizens’ legitimate rights and interests to participate in a social insurance system and receive social insurance benefits, achieving a fair sharing of benefits of development by citizens, and promoting social harmony and stability.
Article 2 The State shall establish a social insurance system consisting of a basic old-age insurance, basic medical insurance, work injury insurance, unemployment insurance, and maternity insurance to guarantee citizens’ rights to receive material assistance from the State and society according to law upon old age, sickness, work injury, unemployment and maternity.
Article 3 The social insurance system follows the principle of wide coverage, modest benefits, multi-tiered programmes and a sustainable system. The level of the social insurance system shall correspond to that of economic and social development.
Article 4 Each employer and individual within the boundary of the People’s Republic of China shall, according to law, make social insurance contributions, have the right to access the related contribution records and individual social insurance benefit credits, and request social insurance consultancy and other relevant services from a social insurance agency.
Each individual shall be entitled to social insurance benefits according to law, and have the right to exercise oversight over contributions made by the employer on his or her behalf.
Article 5 The People’s Governments at and above the county level shall incorporate social insurance into their local economic and social development programmes.
The State shall raise funds for the social insurance system through multiple channels. The People’s Governments at and above the county level shall provide financial support as deemed necessary to social insurance programmes.
The State shall support social insurance through tax incentive policies.
Article 6 The State shall subject social insurance funds to vigorous supervision and control.
The State Council，and People’s Governments of provinces, autonomous regions, and municipalities directly under the Central Government shall establish and improve the supervision and management system for social insurance funds, and guarantee safe and effective fund operations.
The People’s Governments at and above the county level shall adopt measures to encourage and support all stakeholders to participate in social insurance fund supervision.
Article 7 The social insurance administrative department of the State Council shall take charge of national social insurance administration. Any other relevant department of the State Council shall take charge of social insurance affairs within its jurisdiction of responsibility.
The social insurance administrative department of the local People’s Government at or above the county level shall take charge of social insurance administration in its administrative region. Any other relevant department of the local People’s Government at or above the county level shall take charge of social insurance affairs within its jurisdiction of responsibility.
Article 8 A social insurance agency provides social insurance services, and is responsible for social insurance registration, bookkeeping for the participants, and paying social insurance benefits to the beneficiaries.
Article 9 Trade unions shall defend workers’ legitimate rights and interests according to law, have the right to participate in studies and research on fundamental issues related to social insurance, and act as members of the social insurance supervisory committees to perform supervision over the matters related to workers’ social insurance rights and interests.
Chapter II Basic Old-Age Insurance
Article 10 Each employee shall enroll in the basic old-age insurance system; and the employer and the employee shall jointly make basic old-age insurance contributions.
A proprietor of privately or individually-owned business with no hired labour, a part-time worker who is not covered by the basic old-age insurance system through his or her employer, and any other person in employment of flexible forms, may elect to enroll in the basic old-age insurance system, and the person in question shall make basic old-age insurance contributions.
The approach to the basic old-age insurance for civil servants and that for working people who are governed likewise by the Civil Service Law shall be regulated by the State Council.
Article 11 The basic old-age insurance shall be a combination of social pooling and individual accounts.
The basic old-age insurance fund shall consist of contributions from the employers and employees and government subsidies.
Article 12 An employer shall make basic old-age insurance contributions at the State-fixed rate of the employees’ payroll, and the contributions shall be deposited into the basic old-age insurance pooling fund.
An employee shall make basic old-age insurance contributions at the State-fixed rate for his or her wage, and the contributions shall be deposited into his or her individual account.
A member of the basic old-age insurance as proprietor of privately or individually-owned business with no hired labour, part-time worker who is not covered by the basic old-age insurance system through his or her employer, or any other person in employment of flexible forms shall make basic old-age insurance contributions as set by the State; and the contributions shall be divided and deposited separately into the pooling fund and an individual account.
Article 13 The basic old-age insurance contributions due from employees of state enterprises and institutions for their working years prior to the initiation of the old-age insurance system, which are treated as contributing years, shall be made up by the government.
When there arises shortfall for the basic old-age insurance fund to cover its obligations, subsidies shall be provided by the government into the fund.
Article 14 Advance withdrawal from an individual account shall not be allowed. The interest rate of an individual account shall be no less than that for a fixed-term bank account, and interests accrued are not subject to taxation. The balances in the individual account are hereditary upon death of the account bearer.
Article 15 Basic old-age insurance benefits consist of pensions from the pooling and from the individual account.
The basic old-age insurance benefit for a member is determined by the following factors: the member’s cumulative length of contribution payment and assessed wage for contributions, the mean wage of the employees of the district where the member resides, his or her credits in the individual account, and life expectancy of the urban population.
Article 16 A member of the basic old-age insurance shall receive the basic old-age pension on a monthly basis if the member’s cumulative length of contribution payment is no less than fifteen years upon reaching the legal retirement age.
If the cumulative length of contribution payment of a member of the basic old-age insurance is less than fifteen years when the member reaches the legal retirement age, the member may receive the basic old-age insurance on a monthly basis once the member makes up the contribution payment to what is required for fifteen years. The member may elect to transfer to the new rural social insurance of the old-age pension or social insurance of the old-age pension for urban residents, and receive pensions in accordance with the regulations of the State Council.
Article 17 When a member of the basic old-age insurance dies from illnesses or causes not related to work, the survivors of the member are entitled to receive funeral subsidies and bereavement allowances; when a member becomes completely unfit for work due to illnesses or causes not related to work before reaching the legal retirement age, the member is entitled to illness and disability allowances. The expenses required shall be covered from the basic old-age insurance fund.
Article 18 The State shall set up a mechanism for adjusting basic old-age insurance benefits when necessary, and raise the basic old-age insurance benefits at appropriate intervals according to the factors of mean growth of employees’ wages and price increases.
Article 19 The basic old-age insurance relationship of a member who has worked across different pooling districts shall transfer together with the member, and the member’s lengths of contribution payment shall be cumulative. When the member reaches the legal retirement age, his or her basic old-age pension shall be calculated in segregation corresponding to the phases of contribution payment, yet the pension shall be paid in integration as an aggregate. The concrete approach shall be regulated by the State Council.
Article 20 The State shall establish and improve the new rural social insurance of the old-age pension.
The new rural social insurance of the old-age pension shall be a combination of individual contributions, collective subsidies and government allowances.
Article 21 The benefits of the new rural social insurance of the old-age pension shall consist of base pensions and individual account benefits.
A rural resident who is a member of the new rural social insurance of the old-age pension shall receive benefits of the new rural social insurance of the old-age pension on a monthly basis when the member satisfies the conditions set by the State
Article 22 The State shall establish and improve the social insurance of the old-age pension for urban residents.
The People’s Government of a province, autonomous region or municipality directly under the Central Government may, in accordance with its circumstances, may adopt an integrated programme to combine its social insurance of the old-age pension for urban residents with its new rural social insurance of the old-age pension.
Chapter III Basic Medical Insurance
Article 23 Each employee shall enroll in the basic medical insurance system for employees, and the employer and employees shall jointly make basic medical insurance contributions as set by the State.
A proprietor of privately or individually-owned business with no hired labour, a part-time worker who is not covered by the basic medical insurance system for employees through his or her employer, or any other person in employment of flexible forms may enroll in the basic medical insurance system for employees, and the individual in question shall make basic medical insurance contributions as set by the State.
Article 24 The State shall establish and improve the new rural cooperative medical system.
The administration of the new rural cooperative medical system shall be regulated by the State Council.
Article 25 The State shall establish and improve the basic medical insurance system for urban residents.
The basic medical insurance for urban residents shall be a combination of individual contributions and government subsidies.
The assessed individual contributions for beneficiaries of minimum living allowances, disabled persons who are unfit for work, seniors older than sixty years of age and minors from low-income families shall be covered by government subsidies.
Article 26 The benefits of the basic medical insurance for employees, new rural cooperative medical system and the basic medical insurance for urban residents shall be governed by national provisions.
Article 27 A member of the basic medical insurance for employees who satisfies the condition set by the State in terms of cumulative length of contribution payment upon reaching the legal age of retirement shall make no more basic medical insurance contributions after retirement, and be entitled to basic medical insurance benefits in accordance with national provisions; the member who does not satisfy that condition may make further contributions to reach the length of the years set by the State.
Article 28 Medical expenses for pharmaceuticals listed in the basic medical insurance directory, for diagnosis and treatment services and application of medical care facilities covered by the basic medical insurance, and medical expenses for emergencies and rescue services, shall be paid from the basic medical insurance fund in accordance with national provisions.
Article 29 Direct transactions shall be arranged between social insurance agencies and medical institutions and pharmaceutical entities to settle for insured members the proportion of the medical expenses payable by the basic medical insurance fund.
Social insurance administrative departments and health administrative departments shall set up a mechanism to settle medical expenses incurred in different localities, facilitating access of the insured members to their basic medical insurance benefits.
Article 30 Medical expenses listed as follows are not covered by the basic medical insurance fund:
(1) Expenses payable from the work injury insurance fund;
(2) Expenses payable by a third party;
(3) Expenses payable by public health; and
(4) Expenses for overseas medical services.
For medical expenses payable by a third party, when the third party refuses to pay or cannot be identified, interim payment shall be arranged from the basic medical insurance fund. The basic medical insurance fund has the right to demand repayment by the third party after providing the interim payment.
Article 31 Social insurance agencies may, for the sake of managing services, sign service agreements with medical institutions and pharmaceutical entities so as to regulate medical service performance.
Medical institutions shall provide to insured members medical services deemed as suitable and necessary.
Article 32 The basic medical insurance relationship of a member who has worked across different pooling districts shall transfer together with the member, and the member’s lengths of contribution payment shall be cumulative.
Chapter IV Work Injury Insurance
Article 33 Each employee shall enroll in the work injury insurance system. The employer shall make work injury contributions, and the employee is not liable for contributions.
Article 34 Differentiated rates of contributions for industries shall be determined by the State with due consideration of the risk levels associated with the industries. The rate for each industry shall be subdivided into stages according to the following factors: expenditures paid by work injury fund and frequency of work injury occurrences. The differentiated rates of contributions for industries and the rate stages for each industry shall be formulated by the social insurance administrative department of the State Council, and published and put into practice after approval by the State Council.
A social insurance agency shall determine the rate of contributions for an employer according to the following factors: the employer’s expenditures paid by the work injury fund, frequency of work injury occurrences in the business facility, and rate stage for the industry branch of the business.
Article 35 Each employer shall make work injury contributions at the rate set by the social insurance agency of its employees’ payroll.
Article 36 An employee shall be entitled to work injury benefits when the person is injured in an accident due to work-related causes or is affected by occupational diseases, and has undertaken work injury certification. The employee shall be entitled to disability benefits if the person has become unfit for work as assessed in the working fitness assessment.
Work injury certification and working fitness assessment shall be simple and convenient to operate.
Article 37 An employee who is injured or dies at work due to one of the following factors shall not be certified as a victim of work injury:
(1) Committing a crime intentionally;
(2) Insobriety or drug addiction;
(3) Self-mutilation or suicide; or
(4) Any other circumstance as provided by laws and administrative regulations.
Article 38 The following expenses related to work injury are payable from the work injury fund in accordance with national provisions:
(1) Medical expenses for work injury and rehabilitation expenses;
(2) Food allowances during hospitalization;
(3) Transportation, accommodation and food expenses incurred for medical services outside the pooling district;
(4) Expenses for provision and installation of disability aid equipment;
(5) The expenses of personal care as set by the working fitness assessment committee for people who need personal care in life;
(6) Lump-sum disability subsidies, and disability allowances payable on a monthly basis to disabled employees of degrees one through to four;
(7) Lump-sum medical subsidies payable to employees upon termination or rescinding of labour contracts;
(8) Funeral expenses, pension allowances for dependents and subsidies for work-related deaths paid to the survivors when employees die from work-related causes; and
(9) Expenses incurred for working fitness assessments.
Article 39 The following expenses incurred for work injury shall be payable by the employer in accordance with national provisions:
(1) Wages and welfare expenses for the duration of work injury treatment;
(2) Disability allowances paid each month to disabled employees of degrees five and six; and
(3) Lump-sum subsidies for disability employment eligible by employees upon termination or rescinding of labour contracts.
Article 40 When work-injured employees meet the conditions for receiving basic old-age pensions, payment of disability allowances shall cease, and the employees shall instead receive basic old-age pensions. If basic old-age pensions are less than disability allowances, the differentials shall be made up from the work injury insurance fund.
Article 41 When a work injury accident occurs while the employer does not make work injury contributions as required by law, work injury benefits shall be paid by the employer. If the employer refuses to pay, interim payment shall be arranged from the work injury insurance fund.
Interim payment for work injury benefits paid from the work injury fund shall be paid off by the employer. When the employer refuses to pay off, the social insurance agency may demand repayment in accordance with Article 63 of this law.
Article 42 When a work injury accident is caused by a third party, and the third party refuses to pay medical expenses for work injury treatment or the third party cannot be identified, interim payment for the expenses shall be arranged from the work injury insurance fund. The work injury insurance fund has the right to demand repayment from the third party after providing the interim payment.
Article 43 Work-injured employees shall cease receipt of work injury benefits when one of the following conditions is met:
(1) Losing eligibility for benefits;
(2) Refusing working fitness assessment; or
(3) Refusing medical treatment.
Chapter V Unemployment Insurance
Article 44 Each employee shall enroll in the unemployment insurance system, and the employer and employee shall jointly make unemployment insurance contributions as set by the State.
Article 45 An unemployed person shall receive unemployment benefits from the unemployment insurance fund when the following conditions are met:
(1) The employer and the person in question have made unemployment insurance contributions no less than one year prior to the unemployment;
(2) Termination of employment is not caused by the intentional actions of the person in question; and
(3) The person in question has registered as unemployed and is a jobseeker.
Article 46 When the cumulative length of contribution payment of the unemployed person and his or her employer prior to unemployment is greater than one year and less than five years, the maximum duration for unemployment benefits shall be twelve months; when the cumulative length is greater than five years but less than ten years, the maximum duration for unemployment benefits shall be eighteen months; when the cumulative length exceeds ten years, the maximum duration for unemployment benefits shall be twenty-four months. When a person becomes unemployed once again after taking up a new job, the length of contribution payment shall be counted anew, the duration for unemployment benefits shall be counted together with the balances left over from the entitled duration in the previous case, and the maximum shall not exceed twenty-four months.
Article 47 The standard of unemployment benefits shall be determined by the People’s Government of a province, autonomous region or municipality under the Central Government, and shall be no less than the minimum living allowances for urban residents in the region.
Article 48 For the duration of receiving unemployment benefits, unemployed persons shall be entitled to basic medical insurance benefits if they are members of the basic medical insurance for employees.
Basic medical insurance contributions due from unemployed persons shall be paid from the unemployment insurance fund. Unemployed persons are not liable for basic medical insurance contributions.
Article 49 When an unemployed person dies while still a beneficiary of unemployment benefits, local regulations on welfare associated with death of an employed person shall serve as a reference with regard to payment to the survivors of a lump-sum funeral subsidy and bereavement allowance. The expenditures shall be covered by the unemployment insurance fund.
When a person dies and concurrently qualifies for a funeral subsidy under the basic old-age insurance, a funeral subsidy under work injury insurance, and a funeral subsidy under unemployment insurance, the survivors can only choose one of the three.
Article 50 An employer shall provide in a timely manner documentation on termination or rescinding of labour relations to unemployed persons, and present the list of unemployed persons to the social insurance agency within fifteen days as of termination or rescinding of their labour relations.
An unemployed person shall take the documentation provided by his or her employer on termination or rescinding of labour relations and proceed to the designated public employment agency to process unemployment registration in a timely manner.
An unemployed person shall present unemployment registration and personal identity document to the social insurance agency to process the claim for unemployment benefits. The duration for unemployment benefits shall be counted as of the date of unemployment registration.
Article 51 An unemployed person who is a beneficiary of unemployment benefits shall cease receipt of unemployment benefits and shall cease access to other benefits related to unemployment insurance when the person satisfies one of the following conditions:
(1) Taking up a new job;
(2) Enlisted for military service;
(3) Migrating overseas;
(4) Receiving a basic old-age pension; or
(5) Declining without justification a suitable job offer referred by or a training programme provided by the department or agency designated by the local People’s Government.
Article 52 The unemployment insurance relationship of a member who has worked across different pooling districts shall transfer together with the member, and the member’s lengths of contribution payment shall be cumulative.
Chapter VI Maternity Insurance
Article 53 Each employee shall enroll in the maternity insurance system. The employer shall make maternity insurance contributions as set by the State, and the employee is not liable for maternity insurance contributions.
Article 54 When the employer has made maternity insurance contributions, his or her employees shall be eligible for maternity benefits. The unemployed spouse of an employee shall be eligible for benefits related to maternity medical expenses in accordance with national provisions. The payment shall be made from the maternity insurance fund.
Maternity insurance benefits consist of maternity medical expenses and maternity allowances.
Article 55 Maternity medical expenses cover the following items:
(1) Medical expenses for child-bearing;
(2) Medical expenses for family planning; and
(3) Expenses for other items as prescribed by laws and regulations.
Article 56 An employee is eligible for maternity allowances in accordance with national provisions when the employee satisfies one of the following conditions:
(1) A child-bearing female worker taking maternal leave;
(2) Taking leave for an operation of family planning; or
(3) Any other circumstance prescribed by laws and regulations.
Maternity allowance shall be calculated and paid at the monthly mean wage of the prior-year of the employees from the unit where the beneficiary works.
Chapter VII Collection and Payment of Social Insurance Contributions
Article 57 An employer shall, within thirty days from the date of establishment of the entity, proceed with the business license, registration certificate or entity seal to the local social insurance agency to apply for social insurance registration. The social insurance agency shall complete the check and review process and issue social insurance registration certificate to the employer within fifteen days from receipt of the application.
When there are changes in the social insurance registration items of an employer, or the entity of an employer is terminated in accordance with law, the employer shall proceed to the social insurance agency to register the changes or cancel social insurance registration within thirty days from occurrence of the changes or cancellation of the entity.
Each administrative bureau for industry and commerce, department of civil affairs and public sector reform commission shall notify the social insurance agency in a timely manner of entity establishments and terminations; each department for public security shall notify the social insurance agency in a timely manner of citizen births and deaths, and of household registrations, transfers and cancellations.
Article 58 An employer shall, within thirty days after taking on labour, proceed to the social insurance agency to apply for social insurance registrations on behalf of the employees. For those whose social insurance registrations are not processed, the assessed scale of social insurance contributions shall be set by the social insurance agency.
The member who enrolls voluntarily in social insurance system as a proprietor of privately or individually-owned business with no hired labour, or a part-time worker who is not covered by social insurance system through his or her employer, or any other person in employment of flexible forms, shall apply for his or her social insurance registration with the social insurance agency.
The State provides each individual with a social security number valid across the whole country. The citizen’s identity number serves as his or her social security number.
Article 59 The People’s Governments at and above the county level shall devote more efforts for collecting social insurance contributions.
Collection of social insurance contributions shall be carried out in a consolidated way. The steps of implementation and the concrete approaches in this regard shall be regulated by the State Council.
Article 60 Each employer shall declare on its own and pay on time and in full social insurance contributions. The payment shall not be deferred, or lowered in amount or exempted unless due to lawful causes such as force majeure. Social insurance contributions payable by an employee shall be paid on his or her behalf by the employer through transfer from wage deduction. The employer shall notify each employee of details of social insurance contributions to his or her account on a monthly basis.
A member as proprietor of privately or individually-owned business with no hired labour, or part-time worker who is not covered by the social insurance system through his or her employer, or any other person in employment of flexible forms may pay social insurance contributions directly to a social insurance contributions collecting agency.
Article 61 Each social insurance contributions collecting agency shall collect social insurance contributions on time and in full according to law, and notify the employers and individuals concerned of their payments at regular intervals.
Article 62 When an employer fails to declare social insurance payables as prescribed, the payables by the employer shall be set as a 110% multiples of its prior-month payables. When the employer has completed a makeup payment declaration, the social insurance contributions collecting agency shall settle the accounts for the employer in accordance with relevant regulations.
Article 63 When an employer fails to pay on time and in full social insurance contributions, the social insurance contributions collecting agency shall compel the employer to pay or replenish the deficiency within the prescribed period.
When social insurance payables by the employer remain unpaid or deficient at the expiry of the prescribed period, the social insurance contributions collecting agency has the right to inquire from banks and other financial institutions regarding the employer’s bank accounts, and may apply to the relevant administrative department at or above the county level for a decision on capital transfer for social insurance contributions, and notify in writing the banks or other financial institutions where the employer has opened accounts to make the transfer for payment of social insurance contributions. When the balances in the employer’s accounts are less than the social insurance payables, the social insurance contributions collecting agency may require the employer to provide a guarantee, and sign an agreement on payment deferral.
When an employer fails to pay social insurance contributions in full and fails to provide a guarantee, the social insurance contributions collecting agency may request a people’s court to seize, seal up and sell at auction properties owned by the employer equivalent in value to the social insurance payables, and collect the auction earnings as social insurance contributions.
Chapter VIII Social Insurance Funds
Article 64 Social insurance funds consist of the basic old-age insurance fund, basic medical insurance fund, work injury insurance fund, unemployment insurance fund, and maternity insurance fund. Each fund shall have its own account, as corresponding to its social insurance category, and financial settlement of the accounts shall be kept within the category. The national standard accounting system shall apply herewith.
Social insurance funds are earmarked for intended purposes. Any organization or individual shall not usurp or divert for other purposes.
The basic old-age insurance fund shall be progressively put under nationwide pooling, and other social insurance funds shall be progressively put under social pooling at provincial level. The concrete timeframe and schedules shall be provided by the State Council.
Article 65 Social insurance funds shall maintain balance of payments through budgeting exercises.
The People’s Governments at and above the county level shall provide subsidies when there is a shortfall in social insurance funds to cover obligations.
Article 66 Budget for a social insurance fund shall be set up at the pooling level. Each social insurance fund budget shall correspond to its insurance category, and be compiled and formulated in separation from each other.
Article 67 Compilation, review and approval of budget and final account proposals for a social insurance fund shall be governed by laws and by regulations of the State Council.
Article 68 Social insurance funds shall be deposited into dedicated public financial accounts, and the administrative approaches shall be regulated by the State Council.
Article 69 With assured safety as a prerequisite, social insurance funds shall be invested and managed following rules set by the State Council so as to achieve maintenance and accrual of capital values of the funds.
Social insurance funds shall be excluded from investments and operations violating the rules, shall not be utilized to offset other government budgets, shall not be spent on building or altering offices, nor shall they be used to cover personnel expenses, operational and administrative costs. The funds shall not be embezzled for other purposes in violation of the laws and administrative regulations.
Article 70 Social insurance agencies shall provide at regular intervals to the public information concerning social insurance coverage, and incomes and expenditures, balances and investment returns of social insurance funds.
Article 71 The State establishes the National Social Security Fund, which is financed by fiscal allocation of the Central Government and other resources approved by the State Council. The fund is meant for supplementing and adjusting social security expenditures. The National Social Security Fund shall be put to the National Social Security Fund administrative and operating agency for management and fund operations. Maintenance and accrual of capital values of the fund shall be realized with assured safety as a prerequisite.
The National Social Security Fund shall provide at regular intervals to the public information concerning revenues and expenditures, management and investment operations of the Fund. The department of finance, social insurance administrative department and audit office under the State Council discharge supervision of the fund in relation to its revenues and expenditures, management and investment operations.
Chapter IX Social Insurance Operations
Article 72 Each pooling district shall set up a social insurance agency. A social insurance agency may, given its workload, set up branches and service network points within the pooling district with approval from the local social insurance administrative department and the local public sector reform commission.
Personnel expenses of a social insurance agency, its essential operational costs and administration expenses shall be appropriated from the government at the same administrative level as the agency in accordance with national provisions.
Article 73 Each social insurance agency shall establish and improve the institution for its business operations, finance, safety and risk management.
Social insurance agencies shall pay social insurance benefit obligations on time and in full.
Article 74 Social insurance agencies collect data required for their work on social insurance through business operations, statistics, and surveys. The employers and individuals concerned shall provide data faithfully and in a timely manner.
A social insurance agency shall create files in a timely manner for an employer, keep comprehensive and accurate records of the insured members and social insurance contributions, and guard in a safe way original proofs of social insurance registrations and declarations of contributions and accounting invoices of the payments made.
A social insurance agency shall keep an updated, comprehensive and accurate record for each insured member with regard to the contributions paid by the member and by the employer on his or her behalf, his or her social insurance benefit credits, and deliver to the member free of charge his or her credit account at fixed intervals.
An employer and an individual member may inquire about and verify their records of contributions and social insurance benefit credits with the social insurance agency free of charge, and demand from the social insurance agency social insurance consultancy and other services.
Article 75 In line with the overall design of the State, the National Social Insurance Information System shall be jointly constructed by the People’s Governments at and above the county level, following the principle of jurisdiction-based responsibility system.
Chapter X Social Insurance Supervision
Article 76 The Standing Committee of the People’s Congress at every level shall be briefed by the People’s Government at its corresponding level and review its report on income and expenditure accounts, management, investment operations and supervisions of social insurance funds, shall organize enforcement inspections on this law and discharge its supervisory functions by law.
Article 77 The social insurance administrative department of the People’s Government at or above the county level shall devote more vigorous efforts for supervision and inspection on compliance by employers and individuals with social insurance laws and regulations.
When a social insurance administrative department performs an inspection or supervision, the employers and individuals questioned shall faithfully provide documents and data related to social insurance, and shall not refuse inspection nor provide fraudulent information or practice under-reporting.
Article 78 Finance departments and audit offices within their respective jurisdiction shall carry out supervisions on social insurance funds in terms of income and expenditure accounts, management and investment operations.
Article 79 Social insurance administrative departments shall exercise supervisions and inspections over social insurance funds in terms of income and expenditure accounts, management and investment operations. When an administrative department identifies a problem, it shall put forward rectifying recommendations, and make a punitive decision or recommend a punitive proposal to the relevant authorities according to law. Inspection reports on social insurance funds shall be provided to the public at regular intervals.
A social insurance administrative department shall have the right to adopt the following measures when discharging supervision and inspection over social insurance funds:
(1) Accessing, recording and copying materials related to income and expenditure accounts, management and investment operations of social insurance funds, and sealing materials liable to be transferred, concealed or destroyed for the sake of safekeeping;
(2) Questioning the employers and individuals involved in an investigation, and demanding them to explain and provide relevant evidence on the matters under investigation; and
(3) Interdicting and ordering for rectification the acts of concealing, transferring, misappropriating or embezzling social insurance funds.
Article 80 The People’s Government in a pooling district shall establish a social insurance supervisory committee, composed of representatives of employers, insured persons and trade unions, and professional experts. The committee shall have full knowledge and conduct analysis of social insurance funds in terms of income and expenditure accounts, management, and investment operations. The committee can provide consultancies and recommendations on social insurance affairs, and perform public oversight.
A social insurance agency shall brief the social insurance supervisory committee at regular intervals on performance of social insurance funds, and report the funds’ income and expenditure accounts, management and investment operations. A social insurance supervisory committee can hire an accounting firm to conduct annual audits and specified audits for income and expenditure accounts, management and investment operations of social insurance funds. The auditing reports should be provided to the public at regular intervals.
When a social insurance supervisory committee identifies a problem associated with income and expenditure accounts, management, and investment operations of social insurance funds, it shall have the right to put up rectifying recommendations, and shall have the right to recommend a punitive measure stipulated in law to the authoritative department for any unlawful act of a social insurance agency and its employees.
Article 81 Social insurance administrative departments and other administrative departments concerned, social insurance agencies, social insurance contributions collecting agencies and their employees shall keep secret the data of the employers and the individuals according to law, and shall not disclose data in any manner.
Article 82 Any organization or individual shall have the right to report or complain about any non-compliance of social insurance laws and regulations.
Any social insurance administrative department, health administrative department, social insurance agency, social insurance contributions collecting agency, finance department and audit office shall deal with the complaints or reporting that fall under its jurisdiction according to law; for a case beyond its jurisdiction, a notification in writing together with the documents received shall be passed on to the proper authoritative department or agency to address. The proper authoritative department or agency shall handle the complaints and reporting in a timely manner, and any act of shifting of responsibility shall be prohibited.
Article 83 When an employer or individual believes that their legitimate rights have been violated by an act or acts of a social insurance contributions collecting agency, the employer or individual in question can apply for an administrative review or initiate administrative proceedings according to law.
For any non-compliance by a social insurance agency with regard to social insurance registration, calculation and determination of social insurance contributions, paying social insurance benefit obligations, processing transfer or renewal of social insurance relationships, or any other act violating social insurance rights, the employer or individual concerned can apply for an administrative review or initiate administrative proceedings according to law.
When a dispute on social insurance occurs between an individual and his or her employer, the person in question can apply for mediation, arbitration or initiate court proceedings according to law. When an employer infringes upon the social insurance rights of an individual, the individual in question may also demand a lawful settlement by the social insurance administrative department or social insurance contributions collecting agency.
Chapter XI Legal Liabilities
Article 84 When an employer fails to process social insurance registration, the social insurance administrative department shall deliver to the employer concerned an order for rectification within a prescribed period. When rectification does not occur at the expiry of the prescribed period, the employer shall be liable for a fine in excess of its assessed social insurance contribution but less than its triple, and the principals who bear direct responsibilities and other persons with direct responsibilities shall be liable for a fine over 500 but less than 3000 Yuan RBM.
Article 85 When an employer refuses to provide documentation on termination or rescinding of labour relations, a sanction shall be given in accordance with the Labour Contract Law of the People’s Republic of China.
Article 86 When an employer fails to pay social insurance contributions on time and in full, the social insurance contributions collecting agency shall place an order with the employer demanding full payment within a prescribed period, and an overdue payment fine at the rate of 5 per 10,000 shall be levied as of the date of indebtedness. When the payment is not made at the expiry of the prescribed period, a fine above the overdue amount but less than its triple shall be demanded by the authoritative administrative department.
Article 87 When a social insurance service agency such as a social insurance agency, medical institution, or pharmaceutical entity defrauds payment from social insurance funds by cheating, fake documentation or other means, the social insurance administrative agency shall order a return of the defrauded fund, and demand a sanction larger than double but lower than quintuple of the amount defrauded. If the agency involved is one with a contract for provision of social insurance services, such contract shall be terminated; if the principals who bear direct responsibilities and other persons with direct responsibilities are licensed, their licenses shall be revoked according to law.
Article 88 For any offence of making fraudulent claims for social insurance benefits through cheating, fake documentation or other means, the social insurance administrative department shall order a return of the social insurance benefits defrauded, and levy a fine larger than double but less than quintuple of the amount defrauded.
Article 89 When a social insurance agency and its staff commit an offence included in the following list, the social insurance administrative department shall order for rectification. When damage has been done to social insurance funds, an employer or an individual, liability for damage shall be assumed by the person(s) responsible according to law. The principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law.
(1) Not discharging social insurance statutory functions;
(2) Not depositing social insurance funds into dedicated financial accounts;
(3) Underpaying or refusing to pay on time social insurance benefit obligations;
(4) Missing or interpolating social insurance data such as contribution records, payment records of social insurance benefits, and individuals’ credit records; or
(5) Any other non-compliance of social insurance laws and regulations.
Article 90 When a social insurance contribution collecting agency amends without authorization the calculating base and rate of social insurance contributions, which leads to under or over collection of social insurance contributions, the authoritative administrative department shall order for payment of the overdue or return of the overpayment. The principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law.
Article 91 For any act in violation of this law involving concealing, transferring, misappropriating or embezzling social insurance funds, or engaging in investment operations in defiance of rules, the social insurance administrative department, finance department, audit office shall give an order for repayment of the misappropriated funds. If any illegal gains have been obtained, the gains shall be confiscated. The principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law.
Article 92 When a social insurance administrative department or any other relevant administrative department, social insurance agency, social insurance contributions collecting agency and its staff disclose illegally information concerning an employer or an individual, the principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law. If damage has been done to the employer or individual, liability for damage shall be assumed by the person(s) responsible according to law.
Article 93 The public officials who abuse their power, neglect their duties, or engage in fraudulent acts for personal gains shall be sanctioned according to law.
Article 94 Any offence in violation of this law amounting to a crime shall be liable for criminal penalty.
Chapter XII Supplementary Provisions
Article 95 Rural residents who migrate to work in urban areas shall enroll in the social insurance system in accordance with this law.
Article 96 When land acquisition is carried out on properties collectively owned by a farming community, a full payment of social insurance expenses shall be arranged for the farmers who lose their land, and the farmers in question shall be covered in relevant social insurance schemes in accordance with the regulations of the State Council.
Article 97 Foreign nationals who are employed in the Chinese territory shall enroll in the social insurance system in accordance with this law.
Article 98 This law shall enter into force on July 1, 2011.