Regulations on Unemployment Insurance

Regulations on Unemployment Insurance Order of the State Coucil of the People's Republic of China (No. 258) "Regulations on Unemployment Insurance" is adopted at the Eleventh Executive Meeting of the State Council on December 26, 1999, and is promulgated now. This law is effective since its promulgation. Premier of the State Council: Zhu Rongji January 22, 1999 Regulations on Unemployment Insurance Chapter I General Provisions Article 1 These Regulation are formulated to guarantee basic livings of the unemployed during the unemployment period and promote their reemployment. Article 2 Enterprises and institutions in cities and towns as well as their staff and workers shall pay unemployment insurance premium in accordance with these Regulations. The unemployed of enterprises and institutions in cities and towns may enjoy the benefits of unemployment insurance in accordance with these Regulation . Enterprises and institutions in cities and towns mentioned in this Article refer to State-owned enterprises, collectively owned enterprises in cities and towns, enterprises with foreign investment, privately owned enterprises in cities and towns as well as other enterprises in cities and towns Article 3 The administrative department of labor security under the State Council is in charge of unemployment insurance work throughout the country. The administrative departments of labor security under the people's governments at or above the county level are in charge of unemployment insurance work within their respective administrative areas. Social insurance agencies engaging in unemployment insurance business established by administrative departments of labor security in accordance with provisions of the State Council will undertake concretely the unemployment insurance work. Article 4 Unemployment insurance premium is collected and paid according to relevant provisions of the State. Chapter II Unemployment Insurance Funds Article 5 Unemployment insurance funds include the following items: a.unemployment insurance premium paid by enterprises and institutions in cities and towns as well as their staff and workers; b.interest of unemployment insurance fund; c.financial subsidies; d.other funds incorporated into unemployment insurance funds according to law. Article 6 Enterprises and institutions in cities and towns shall pay unemployment insurance premium at a rate of 2% on the basis of their total amount of salaries. Staff and workers in enterprises and institutions in cities and towns shall pay unemployment insurance premium at a rate of 1% on the basis of their own salaries. Contract-system farmer workers engaged by enterprises and institutions in cities and towns do not pay unemployment insurance premium themselves. Article 7 Overall planning for unemployment insurance funds is to be conducted in municipalities directly under the Central Government and cities divided into districts; levels of overall planning in other areas are to be stipulated by people's governments of provinces and autonomous regions. Article 8 Provinces and autonomous regions may establish adjustment funds of unemployment insurance. Adjustment funds of unemployment insurance are to be raised at a ratio prescribed by people's governments of provinces or autonomous regions, taking unemployment insurance premium that should be collected according to law in areas where overall planning is conducted as the base. If unemployment funds in areas where overall planning is conducted are not enough for use, adjustment funds of unemployment insurance may be used as adjustment and local finance may be used as subsidies. Specific measures for raising and adjusting adjustment funds of unemployment insurance and for local financial subsidies are to be stipulated by people's governments of provinces and autonomous regions. Article 9 People's governments of provinces, autonomous regions and municipalities directly under the Central Government, according to the number of the unemployed and the amount of unemployment insurance funds for their respective administrative areas, and after the approval by the State Council, may adjust properly rate of unemployment insurance premium. Article 10 Unemployment insurance funs shall be used for the following expenditure: a.unemployment insurance compensation; b.medical subvention during the period of receiving unemployment insurance compensation; c.funeral allowance for the unemployed died during the period of receiving unemployment insurance compensation and pension for spouse and direct relatives supported by the dead person; d.subsidy for accepting job training and job seeking during the period of receiving unemployment insurance compensatio......