Social Insurance Law of the People's Republic of China (2018 Amendment)

Social Insurance Law of the People's Republic of China (2018 Amendment) Social Insurance Law of the People's Republic of China (Adopted at the 17th meeting of the Standing Committee of the 11th National People's Congress on October 28, 2010, and amended in accordance with the Decision to Amend the Social Insurance Law of the People's Republic of China adopted at 7th session of the Standing Committee of the thirteenth National People's Congress on December 29, 2018) Contents Chapter I General Provisions Chapter II Basic Endowment Insurance Chapter III Basic Medical Insurance Chapter IV Employment Injury Insurance Chapter V Unemployment Insurance Chapter VI Maternity Insurance Chapter VII Collection and Payment of Social Insurance Premiums Chapter VIII Social Insurance Funds Chapter IX Social Insurance Agencies Chapter X Social Insurance Supervision Chapter XI Legal Liabilities Chapter XII Supplementary Provisions Chapter I General Provisions Article 1 This Law is formulated in accordance with the Constitution for purposes of regulating social insurance relations, protecting the legitimate rights and interests of citizens participating in social insurance and enjoying social insurance benefits, enabling citizens to share the achievements of development and promoting social harmony and stability. Article 2 The state shall establish a social insurance system including basic endowment insurance, basic medical insurance, employment injury insurance, unemployment insurance and maternity insurance to guarantee the rights of citizens to legally obtain material assistance from the state and society in case of old age, illness, work-related injuries, unemployment and childbirth. Article 3 The social insurance system shall adhere to the guidelines of “broad coverage, basic insurance, multiple levels and sustainability,” and the social insurance level shall be commensurate with the economic and social development level. Article 4 Employers and individuals within the territory of the People's Republic of China shall pay social insurance premiums in accordance with law, and have the rights to inquire about their premium contribution records and personal benefit records and request social insurance agencies to provide social insurance consultation and other relevant services. Individuals shall enjoy social insurance benefits in accordance with law, and have the right to oversee the premium payments made for them by their employers. Article 5 The people's governments at and above the county level shall include social insurance in their national economic and social development planning. The state shall raise social insurance funds through various channels. The people's governments at and above the county level shall provide necessary fund support for social insurance. The state shall provide support for social insurance through preferential tax polices. Article 6 The state shall conduct strict supervision and administration of social insurance funds. The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall establish and improve the supervision and administration system for social insurance funds to ensure the safe and effective operation of social insurance funds. The people's governments at and above the county level shall take measures to encourage and support participation in the supervision of social insurance funds by all quarters of the society. Article 7 The social insurance administrative department under the State Council shall be responsible for the social insurance administration throughout the country, and other relevant departments under the State Council shall be responsible for the relevant social insurance work within their respective functions. The social insurance administrative departments under the local people's governments at and above the county level shall be responsible for the social insurance administration within their respective administrative regions, and other relevant departments of the local people's governments at and above the county level shall be responsible for the relevant social insurance work within their respective functions. Article 8 Social insurance agencies shall provide social insurance services, responsible for social insurance registration, personal benefit records, payment of social insurance benefits and other work. Article 9 Trade unions shall safeguard the legitimate rights and interests of employees in accordance with law, and have rights to participate in the research on major social insurance issues and sit on social insurance regulatory committees to oversee issues related to the social insurance rights and interests of employees. Chapter II Basic Endowment Insurance Article 10 Employees shall participate in the basic endowment insurance, and the basic endowment insurance premiums shall be jointly paid by employers and employees. Individual industrial and commercial households without employees, part-time employees not participating in the basic endowment insurance through their employers and other persons in flexible employment may participate in the basic endowment insurance, but shall pay the basic endowment insurance premiums themselves. The endowment insurance measures for civil servants and staff governed analogically by the Civil Servant Law shall be formulated by the State Council. Article 11 The combination of general social planning and personal accounts shall apply to the basic endowment insurance. The basic endowment insurance funds shall comprise contributions made by employers and individuals, as well as government subsidies. Article 12 An employer shall, as per the percentage of the total wages of its employees prescribed by the state, pay the basic endowment insurance premiums, which shall be included in the general funds of basic endowment insurance. Employees shall, as per the percentage of their wages prescribed by the state, pay the basic endowment insurance premiums, which shall be included in the personal accounts. Where individual industrial and commercial households without employees, part-time employees not participating in the basic endowment insurance through their employers and other persons in flexible employment participate in the basic endowment insurance, they shall pay the basic endowment insurance premiums in accordance with the relevant provisions of the state, which shall be included in the general basic endowment insurance funds and their personal accounts respectively. Article 13 The basic endowment insurance premiums payable during the period in which the premiums are deemed to have been paid before the employees of state-owned enterprises and public institutions participate in the basic endowment insurance shall be assumed by the government. When the basic endowment insurance funds are insufficient for payment, the government shall provide subsidies. Article 14 No early withdrawal from the personal account shall be allowed, the recording interest rate shall not be lower than the interest rate for time deposit in banks, and the personal accounts shall be exempted from interest tax. When an individual deceases, the balance in his/her personal account may be inherited. Article 15 Basic pension shall comprise general pension and personal account pension. Basic pension shall be determined on the basis of the cumulative personal contribution period, contribution wages, average wages of local employees, amount in personal account, average life expectancy of urban population and other factors. Article 16 An individual participating in the basic endowment insurance shall receive a monthly basic pension provided that he/she has contributed premiums for a cumulative period of 15 years or more when he/she reaches the statutory retirement age. Where an individual participating in the basic endowment insurance has contributed premiums for a cumulative period under 15 years when he/she reaches the statutory retirement age, he/she shall receive a monthly basic pension after having contributed premiums for 15 years; or his/her insurance relationship may be transferred into the new-type social endowment insurance for rural areas or social endowment insurance for urban residents, and he/she shall enjoy the corresponding endowment insurance benefits in accordance with the relevant provisions of the State Council. Article 17 Where an individual participating in the basic endowment insurance deceases for illness or any non-work-related reason, his/her surviving family members may receive funeral subsidies and condolence money. Where the individual becomes disabled for illness or any non-work-related reason and completely loses the ability to work when he/she has not reached the statutory retirement age, he/she may receive illness and disability allowances. The funds needed shall be paid from the basic endowment insurance funds. Article 18 The state shall establish a normal adjustment mechanism for basic pension, and raise the level of basic endowment insurance benefits at proper time in consideration of the growth of average wages of employees and price rise. Article 19 Where an individual is employed in a different overall planning area, his/her basic endowment insurance relationship shall be transferred with him/her, and the contribution period shall be calculated on a cumulative basis. When the individual reaches the statutory retirement age, his/her basic pension shall be calculated by segment but be paid in a unified way. The specific measures shall be formulated by the State Council. Article 20 The state shall establish and improve a new-type social endowment insurance system for rural areas. The combination of personal contributions, collective subsidies and government subsidies shall apply to the new-type social endowment insurance for rural areas. Article 21 The new-type social endowment insurance benefits for rural areas shall comprise base pension and personal account pension. Rural residents participating in the new-type social endowment insurance for rural areas shall receive monthly new-type social endowment insurance benefits for rural areas provided that they meet the conditions prescribed by the state. Article 22 The state shall establish and improve a social endowment insurance system for urban residents. The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may, in light of the actualities, integrate the social endowment insurance for urban residents and the new-type social endowment insurance for rural areas in implementation. Chapter III Basic Medical Insurance Article 23 Employees shall participate in the basic medical insurance for employees, and the basic medical insurance premiums shall be jointly paid by employers and employees in accordance with the relevant provisions of the state. Individual industrial and commercial households without employees, part-time employees not participating in the basic medical insurance for employees through their employers and other persons in flexible employment may participate in the basic medical insurance for employees, but the basic medical insurance premiums shall be paid by the individuals in accordance with the relevant provisions of the state. Article 24 The state shall establish and improve a new-type rural cooperative medical care system. The measures for the administration of the new-type rural cooperative medical care shall be formulated by the State Council. Article 25 The state shall establish and improve a basic medical insurance system for urban residents. The combination of personal contributions and government subsidies shall apply to the basic medical insurance for urban residents. For the persons enjoying the minimum living safeguard, the disabled persons who have lost the ability to work and the seniors aged 60 years or more and minors of low-income families, their personal contributions shall be subsidized by the government. Article 26 The standards of benefits of the basic medical insurance for employees, new-type rural cooperative medical care and basic medical insurance for urban residents shall be governed by the relevant provisions of the state. Article 27 Where an individual participating in the basic medical insurance for employees has paid premiums for a cumulative period reaching the number of years prescribed by the state when he/she reaches the statutory retirement age, he/she need not pay the basic medical insurance premiums any more after retirement, and shall enjoy the basic medical insurance benefits according to the relevant provisions of the state; or if the number of years prescribed by the state is not reached, he/she may pay premiums until the number of years prescribed by the state is reached. Article 28 Medical expenses in conformity with the drug catalogue, diagnosis and treatment items and medical care service facilities standards for the basic medical insurance and medical expenses for emergency treatment or rescue shall be paid from the basic medical insurance funds according to the relevant provisions of the state. Article 29 The part of medical expenses of the insured payable from the basic medical insurance funds shall be directly settled by the social insurance agencies with the medical institutions or pharmaceutical business entities. Social insurance administrative departments and health administrative departments shall establish a system for the settlement of medical expenses incurred at different places to provide conveniences for the insured to enjoy his/her basic medical insurance benefits. Article 30 The following medical expenses shall not be included in the payment scope of the basic medical insurance funds: (1) expenses payable from the employment injury insurance funds; (2) expenses assumed by a third party; (3) expenses assumed by the public health; and (4) expenses for overseas medical treatment. Where the medical expenses shall be assumed by a third party in accordance with law, but the third party fails to pay or cannot be determined, the medical expenses shall be prepaid from the basic medical insurance funds. The basic medical insurance funds shall be entitled to be reimbursed by the third party after prepayment. Article 31 Social insurance agencies may, as needed for their management of services, conclude service agreements with medical institutions and pharmaceutical business entities to regulate medical services. Medical institutions shall provide reasonable and necessary medical services f......