Social Insurance Law of the People’s Republic of China
(Adopted at the 17th meeting of the Standing Committee of the Eleventh National People’s Congress on October 28, 2010)
Contents
Chapter 1 General Provisions
Chapter 2 Basic Pension Insurance
Chapter 3 Basic Medical Insurance
Chapter 4 Work-related Injury Insurance
Chapter 5 Unemployment Insurance
Chapter 6 Maternity Insurance
Chapter 7 Collection and Payment of Social Insurance Premiums
Chapter 8 Social Insurance Funds
Chapter 9 Handling of Social Insurance
Chapter 10 Supervision of Social Insurance
Chapter 11 Legal Liabilities
Chapter 12 Supplementary Provisions
Chapter 1 General Provisions
Article 1 This Law is formulated in accordance with the Constitution for the purposes of regulating social insurance relationship, protecting the legal right and interest of citizens in participating in social insurance and enjoying social insurance benefits, enabling citizens to share the development achievements and promoting social harmony and stability.
Article 2 The State establishes social insurance systems such as basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance and maternity insurance so as to protect the right of citizens in receiving material assistance from the State and the society in accordance with the law when getting old, sick, injured at work, unemployed and giving birth.
Article 3 The social insurance system adheres to the principles of wide coverage, basic protection, multi-level and sustainability and the level of social insurance shall correspond to the level of economic and social development.
Article 4 Employing entities and individuals within the territory of the People’s Republic of China shall pay social insurance premiums in accordance with the law and shall be entitled to enquiry about payment records and personal interest records and request social insurance agencies to provide relevant services such as social insurance consultation.
Individuals may enjoy social insurance benefits and are entitled to supervise the status of premium payment by their own entities for them in accordance with the law.
Article 5 People’s governments above the county level shall include social insurance undertaking in the national economic and social development plans.
The State raises social insurance funds through multiple channels. People’s governments above the county level shall provide necessary outlay support for social insurance undertaking.
The State supports social insurance undertaking through tax incentive policies.
Article 6 The State strictly regulates the social insurance funds.
The State Council and the people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government establish and improve the supervision and administration system of the social insurance funds, protect the security of the social insurance funds and ensure their effective operation.
People’s governments above the county level adopt measures to encourage and support all sectors of the society to participate in the supervision of the social insurance funds.
Article 7 The social insurance administration departments of the State Council are responsible for the work with respect to the administration of social insurance throughout the country. Other relevant departments of the State Council are responsible for the relevant social insurance work within their respective scope of duties.
Social insurance administration departments of the local people’s governments above the county level are responsible for the work with respect to the administration of social insurance within their own administration regions. Other relevant departments of the local people’s government above the county level are responsible for the relevant social insurance work within their respective scope of duties.
Article 8 Social insurance agencies provide social insurance services and are responsible for work such as social insurance registration, personal interest records and payment of social insurance benefits.
Article 9 The trade unions protect the legal interest of the workers in accordance with the law and are entitled to participate in the study of major social insurance issues, join the social insurance supervision commissions and supervise issues relating to the social insurance interest of the workers.
Chapter 2 Basic Pension Insurance
Article 10 Workers shall participate in basic pension insurance and the basic pension insurance premiums shall be paid jointly by the employing entities and the workers.
Sole proprietors who are not employed, non-full time practitioners and other workers in flexible employment who have not participated in the basic pension insurance in the employing entities may participate in basic pension insurance and pay the basic pension insurance premiums on their own.
Measures for the pension insurance of civil servants and staff governed by the civil servant laws shall be prescribed by the State Council.
Article 11 Basic pension insurance involves both social coordination and personal accounts.
The basic pension insurance fund is made up of payment from the employing entities and individuals and government subsidies.
Article 12 An employing entity shall pay the basic pension insurance premium, which shall be included and recorded in the basic pension insurance coordination fund, according to a ratio of the total wage of the worker of the entity that is stipulated by the State.
A worker shall pay the basic pension insurance premium, which shall be included and recorded in the personal account, according to a ratio of the wage of the worker that is stipulated by the State.
Sole proprietors who are not employed or non-full time practitioners and other workers in flexible employment who have not participated in the basic pension insurance in the employing entities but have participated in basic pension insurance shall pay the basic pension insurance premiums in accordance with the provisions of the State and such premiums shall be included and recorded in the basic pension insurance coordination fund and the personal accounts respectively.
Article 13 The basic pension insurance premiums that shall be deemed to have been paid during the payment period before the workers of the State-owned enterprises and institutions participate in the basic pension insurance shall be borne by the government.
In case the amount in the basic pension insurance fund is insufficient to make payment, the government shall provide the subsidy.
Article 14 The amount in the personal account shall not be withdrawn in advance. The interest rate for the amount in the account shall not be lower than the bank’s interest rate for time deposits. Interest rate tax is exempted. The balance in the personal account may be inherited after the death of the individual.
Article 15 The basic pension is made up of the coordinated pension and the pension in the personal account.
The basic pension is determined based on factors such as the individual’s cumulative premium payment period, the wage from which premium payment is made, the average wage of the local workers, the amount in the personal account and the average life expectancy of the urban population.
Article 16 An individual participating in basic pension insurance may collect basic pension on a monthly basis if the cumulative premium payment period reaches 15 years at the time the individual reaches the statutory retirement age.
If the cumulative premium payment period is less than 15 years at the time the individual participating in basic pension insurance reaches the statutory retirement age, he/she may continue to pay the premium until the cumulative premium payment period reaches 15 years and then collect the basic pension on a monthly basis, or he/she may transfer to the new rural social pension insurance or the social pension insurance for urban residents and enjoy the corresponding pension insurance benefits in accordance with the provisions of the State Council.
Article 17 If an individual who participates in basic pension insurance passes away due to sickness or reasons other than work, the family members of the deceased may collect funeral allowance and bereavement payment. The individual losing the capacity for work completely due to sickness or disability not caused by work before reaching the statutory retirement age may collect sickness and disability subsidy. The amount required shall be paid from the basic pension insurance fund.
Article 18 The State establishes a normal adjustment mechanism for basic pensions, which increases the basic pension insurance benefits in a timely manner based on the growth of the average wage of the workers and the rise of prices.
Article 19 The basic pension insurance relationship of an individual shall be transferred along with the shift of his/her employment away from the coordinated region but the premium payment period shall be accumulated. When an individual reaches the statutory retirement age, the basic pension will be calculated by phases but will be paid together. The specific measures shall be prescribed by the State Council.
Article 20 The State establishes and improves the new rural social pension insurance system.
The new rural social pension insurance involves a combination of personal payment, collective subsidy and government subsidy.
Article 21 The new rural social pension insurance benefits are made up of basic pensions and pensions from the personal accounts.
Rural residents who participate in new rural social pension insurance and meet the conditions stipulated by the State will collect new rural social pension insurance benefits on a monthly basis.
Article 22 The State establishes and improves the social pension insurance system for urban residents.
People’s governments of the provinces, autonomous regions and municipalities directly under the Central Government may combine the implementation of social pension insurance for urban residents and new rural social pension insurance.
Chapter 3 Basic Medical Insurance
Article 23 Workers shall participate in basic medical insurance for workers. The employing entities and the workers shall jointly pay the basic medical insurance premiums in accordance with the provisions of the State.
Sole proprietors who are not employed, non-full time practitioners and other workers in flexible employment who have not participated in the basic medical insurance in the employing entities may participate in basic medical insurance and pay the basic medical insurance premiums on their own.
Article 24 The State establishes and improves the new rural cooperative medical system.
The administrative measures for new rural cooperative medical care shall be prescribed by the State Council.
Article 25 The State establishes and improves the basic medical insurance system for urban residents.
The basic medical insurance for urban residents involves a combination of personal payment of premium and government subsidy.
The portion of premiums that need to be paid by the individuals having minimum living security, the disabled losing capacity for work and elderly above 60 years old and minors in low-income families will be subsidized by the government.
Article 26 The standards for benefits under basic medical insurance for workers, new rural cooperative medical insurance and basic medical insurance for urban residents shall be implemented in accordance with the provisions of the State.
Article 27 If the cumulative premium payment period reaches the period stipulated by the State at the time the individual participating in basic medical insurance for workers reaches the statutory retirement age, he/she will no longer pay basic medical insurance premium after he/she retires and may enjoy basic medical insurance benefits in accordance with the provisions of the State. If the cumulative premium payment period has not reached the period stipulated by the State, he/she may continue to pay the premium until reaching the period stipulated by the State.
Article 28 Medical expenses that conform to the drug catalogue, the treatment items and the standard of medical services and facilities for basic medical insurance and medical expenses for emergency treatment and rescue shall be paid from the basic medical insurance fund in accordance with the provisions of the State.
Article 29 The portion of medical expense of the party participating in insurance that should be paid from the basic medical insurance fund shall be settled directly between the social insurance agency and the medical institution or the entity engaging in the drug business.
The social insurance administration departments and the health administration departments shall establish the system for the settlement of medical expenses for medical treatment that is not received locally to make it easy for parties participating in insurance to enjoy basic medical insurance benefits.
Article 30 The following medical expenses are not included in the scope of payment by the basic medical insurance fund:
(1) expense that should be paid from the work-related injury insurance fund;
(2) expense that should be borne by a third party;
(3) expense that should be borne by the public health authority;
(4) expense for medical treatment overseas.
If medical fees should be borne by a third party in accordance with the law but the third party refuses to make the payment or the third party cannot be ascertained, the fee will first be paid from the basic medical insurance fund. The basic medical insurance fund is entitled to claim the amount from the third party after making the payment first.
Article 31 A social insurance agency may sign a service agreement with a medical institution or an entity engaging in the drug business based on the need of the management services so as to regulate medical services and practices.
A medical institution shall provide reasonable and necessary medical services for the party participating in insurance.
Article 32 The basic medical insurance relationship of an individual shall be transferred along with the shift of his/her employment away from the coordinated region but the premium payment period shall be accumulated.
Chapter 4 Work-related Injury Insurance
Article 33 Workers shall participate in work-related injury insurance and the work-related injury insurance premiums shall be paid by the employing entities. The workers need not pay the work-related injury insurance premiums.
Article 34 The State determines the different rates of premiums for different industries based on the level of work-related injury risk in the industries and determine the rate scale within each industry based on the utilization of the work-related injury insurance fund and the incidence rates of injuries. The different rates of premiums for different industries and the rate scale within each industry shall be determined by the social insurance administration departments of the State Council and shall be reported to the State Council for approval before publication and implementation.
A social insurance agency shall determine the rate of premium paid by an employing entity based on the utilization of the work-related injury insurance fund by the employing entity and the incidence rates of injuries of the employing entity and the rate scale of the industry to which the employing entity belongs.
Article 35 An employing entity shall pay the work-related injury insurance premium based on the total wage of the worker in the entity and the premium rate determined by the social insurance agency.
Article 36 A worker injured in an accident due to work or suffering from an occupational disease and is identified as being injured at work shall enjoy work-related injury insurance benefits. A worker identified as losing the capacity for work after the assessment on capacity for work is conducted shall enjoy disability benefits.
The method of the identification of work-related injury and assessment on capacity for work shall be simple and convenient.
Article 37 A worker who passes away or gets injured at work due to any of the following situations is not identified as suffering from work-related injury:
(1) committing a criminal offense intentionally;
(2) getting drunk or taking drugs;
(3) inflicting harm on himself or committing suicide;
(4) Other situations prescribed by the provisions of the laws and administrative regulations.
Article 38 The following fees arising from work-related injuries shall be paid from the work-related injury insurance fund in accordance with the provisions of the State:
(1) medical fees and rehabilitation fees for the treatment of work-related injury;
(2) meal allowance during hospitalization;
(3) fees for transportation, accommodation and meal when receiving medical treatment outside the coordinated region;
(4) fees required for the installation of aids and appliances for the disabled;
(5) fees for daily care confirmed by the committee assessing the capacity for work for those who cannot take care of themselves;
(6) one-off disability allowance and disability subsidy collected on a monthly basis by workers with classes 1-4 disability;
(7) one-off medical allowance upon termination or rescission of the labor contract;
(8) funeral allowance for the family members of the deceased, bereavement payment for dependant relatives and allowance for work-related death in case of work-related death;
(9) fee for the assessment of capacity for work.
Article 39 The following fees arising from work-related injuries shall be paid by the employing entities in accordance with the provisions of the State:
(1) wages and welfare during the treatment period of the work-related injury;
(2) disability subsidy collected on a monthly basis by workers with class 5 or 6 disability;
(3) one-off employment allowance for the disabled upon termination or rescission of the labor contract.
Article 40 A worker who suffers from work-related injury and meets the conditions for collecting basic pension will stop receiving the disability subsidy and enjoy the basic pension insurance benefits. In case the basic pension insurance benefits are less than the disability subsidy, the difference shall be made up by the work-related injury insurance fund.
Article 41 If the employing entity in which the worker works does not pay the work-related injury insurance premium in accordance with the law and a work-related accident that cause injury occurs, the employing entity shall pay the work-related injury insurance benefit. If the employing entity refuses to make the payment, the payment shall first be made from the work-related injury insurance fund.
The work-related injury insurance benefits paid from the work-related injury insurance fund shall be repaid by the employing entity. If the employing entity refuses to make the repayment, the social insurance agency may claim for the repayment in accordance with the provisions of Article 63 of this Law.
Article 42 If the work-related injury is caused by a third party but the third party refuses to pay the medical fee for the work-related injury or the third party cannot be ascertained, the fee will first be paid from the work-related injury insurance fund. The work-related injury insurance fund is entitled to claim the amount from the third party after making the payment first.
Article 43 A worker who suffers from work-related injury shall cease to enjoy the work-related injury insurance benefits in any of the following situations:
(1) he/she has lost eligibility to enjoy the benefits;
(2) he/she refuses to undergo the assessment on capacity for work;
(3) he/she refuses to receive treatment.
Chapter 5 Unemployment Insurance
Article 44 Workers shall participate in unemployment insurance and the unemployment insurance premiums shall be paid jointly by the employing entities and the workers in accordance with the provisions of the State.
Article 45 An unemployed person meeting the following conditions may collect unemployment insurance compensation from the unemployment insurance fund:
(1) the employing entity and the unemployed person has paid the unemployment insurance premiums for one year before the person becomes unemployed;
(2) the unemployed person unintentionally terminates the employment;
(3) the unemployed person has gone through the formalities for unemployment registration and is seeking employment.
Article 46 If the employing entity and the unemployed person have paid the insurance premiums for one year or more but less than five years before the unemployed person becomes unemployed, he/she may collect unemployment insurance compensation for at most 12 months. If the cumulative premium payment period reaches five years but is less than ten years, the unemployment insurance compensation may be collected for at most 18 months. If premiums have been paid for more than ten years, the unemployment insurance compensation may be collected for at most 24 months. If the person becomes unemployed again after re-employment, the premium payment period will be calculated all over again, the period for the collection of unemployment insurance compensation this time together with the period during which unemployment insurance compensation may be collected but have not been collected for previous unemployment shall, in aggregate, be no more than 24 months.
Article 47 The standards of unemployment insurance compensation shall be determined by the people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government and shall not be lower than the minimum living security standard of urban residents.
Article 48 An unemployed person who participates in basic medical insurance during the period in which he/she collects unemployment insurance compensation shall enjoy basic medical insurance benefits.
The basic medical insurance premium that should be paid by the unemployed person shall be paid from the unemployment insurance fund. The individual is not required to pay basic medical insurance premium.
Article 49 If the unemployed person passes away during the period in which he/she collects unemployment insurance compensation, his/her family members shall be given an one-off funeral allowance and bereavement payment by reference to the local provisions relating to the death of workers in employment. The amount required shall be paid from the unemployment insurance fund.
If an individual passes away and the conditions for the collection of funeral allowance from basic pension insurance, funeral allowance from work-related injury insurance and funeral allowance from unemployment insurance are met at the same time, his/her family member may only choose to collect funeral allowance from one of them.
Article 50 The employing entity shall issue the proof of the termination or severance of labor relationship for the unemployed person in a timely manner and shall notify the social insurance agency of the list of unemployed person within 15 days from the date of the termination or severance of the labor relationship.
An unemployed person shall go through the formalities for unemployment registration at the designated public employment service institution in a timely manner upon presentation of the proof of the termination or severance of labor relationship issued for him/her by the employing entity.
An unemployed person shall go through the formalities for the collection of unemployment insurance compensation at the social insurance agency upon presentation of the proof of unemployment registration and proof of personal identity. The period during which unemployment insurance compensation may be collected shall be counted from the date the formalities for unemployment registration is gone through.
Article 51 If an unemployed person is involved in any of the following situations during the period in which unemployment insurance compensation is collected, he/she shall stop collecting the unemployment insurance compensation and stop enjoying other unemployment insurance benefits:
(1) is re-employed;
(2) applies to serve in the military;
(3) migrates to a foreign country;
(4) enjoys basic pension insurance benefit;
(5) refuses to accept the appropriate job referred by or training provided by the department or institution designated by the local people’s government without proper reasons.
Article 52 The unemployment insurance relationship of an individual shall be transferred along with the shift of his/her employment away from the coordinated region but the premium payment period shall be accumulated.
Chapter 6 Maternity Insurance
Article 53 Workers shall participate in maternity insurance and the maternity insurance premiums shall be paid by the employing entities in accordance with the provisions of the State. The workers need not pay the maternity insurance premiums.
Article 54 If the employing entity has paid the maternity insurance premium, its worker shall enjoy maternity insurance benefit. The spouse of the worker who is not in employment will be paid the benefit of medical fees associated with giving birth. The amount required shall be paid from the maternity insurance fund.
Maternity insurance benefits include the medical fees associated with giving birth and maternity subsidy.
Article 55 The medical fees associated with giving birth include the following:
(1) medical fees associated with giving birth;
(2) medical fees associated with planned birth;
(3) fees for other items in accordance with the provisions of the laws and regulations.
Article 56 A worker involved in any of the following situations may enjoy maternity subsidy in accordance with the provisions of the State:
(1) a female worker in maternity leave;
(2) taking leave due to an operation related to planned birth;
(3) other situations stipulated by the laws and regulations.
The maternity subsidy shall be calculated and given based on the average monthly wage of the worker of the employing entity in the preceding year.
Chapter 7 Collection and Payment of Social Insurance Premiums
Article 57 An employing entity shall apply to the local social insurance agency for going through the formalities for social insurance registration upon the presentation of the business license, registration certificate or the seal of the entity within 30 days from the date on which the employing entity is established. The social insurance agency shall review the application and issue the social insurance registration certificate within 15 days from the date on which the application is received.
If the social insurance item registered by an employing entity changes or the employing entity is terminated in accordance with the law, the employing entity shall go through the formalities for the change or cancellation of social insurance registration at the social insurance agency within 30 days from the date of such change or termination.
Industrial and commercial administration departments, civil affairs departments and the authorities responsible for the administration of the institutional establishments shall inform the social insurance agencies of the status of the establishment and termination of employing entities in a timely manner. The public security authorities shall inform the social insurance agencies of the individuals?birth, death and household registration, relocation and cancellation in a timely manner.
Article 58 An employing entity shall apply for its workers to the social insurance agency for going through the formalities for social insurance registration within 30 days from the date on which the worker is employed. If the formalities for social insurance registration have not been gone through, the social insurance agency shall determine the social insurance premium that the employing entity should pay.
Sole proprietors who are not employed or non-full time practitioners and other workers in flexible employment who have not participated in the social insurance in the employing entities but participate in social insurance on a voluntary basis shall apply to the social insurance agency for going through the formalities for social insurance registration.
The State will create a social insurance number for an individual that is uniform throughout the country. The social insurance number for the individual shall be the citizen identity number.
Article 59 The people’s governments above the county level shall strengthen the work with respect to the collection of social insurance premiums.
The social insurance premiums are collected in a centralized manner, with the implementation steps and specific measures prescribed by the State Council.
Article 60 An employing entity shall declare and make a full payment of the social insurance premiums on its own as scheduled and shall not delay or reduce the payment for reasons other than statutory causes such as force majeure. The social insurance premiums that should be paid by a worker shall be withheld and paid by the employing entity on the worker’s behalf. The employing entity shall inform the worker of the breakdown of payment of the social insurance premiums on a monthly basis.
Sole proprietors who are not employed or non-full time practitioners and other workers in flexible employment who have not participated in the social insurance in the employing entities may pay the social insurance premiums directly to the social insurance premium collection institutions.
Article 61 A social insurance premium collection institution shall collect the full amount of social insurance premiums as scheduled in accordance with the law and shall inform the employing entity and the individual of the status of premium payment on a regular basis.
Article 62 If an employing entity has not declared the amount of social insurance premiums that should be paid in accordance with the provisions, the amount that should be paid shall be determined based on 110% of the amount of premiums paid by the entity in the preceding month. After the entity paying the premiums handles the originally omitted declaration formalities, the social insurance premium collection institution shall make the settlement in accordance with the provisions.
Article 63 If an employing entity does not pay the full amount of social insurance premiums as scheduled, the social insurance premium collection institution shall order it to make the payment or make up the difference within the stipulated period.
If the employing entity does not pay or make up the difference of the social insurance premiums within the stipulated period, the social insurance premium collection institution may make enquires to the bank or other financial institutions about the deposit account of the entity. It may also apply to the relevant administration department above the county level to make the decision on the allocation of social insurance premiums and inform the bank or other financial institutions with which the account is opened in writing to allocate the social insurance premiums. If the balance in the account of the employing entity is less than the social insurance premiums that should be paid, the social insurance premium collection institution may request the employing entity to provide guarantee and sign the agreement on the delay in premium payment.
If the employing entity does not pay the full amount of the social insurance premiums and does not provide guarantee, the social insurance premium collection institution may apply to the people’s court to attach, seize and auction the entity’s properties with value equivalent to the social insurance premiums that should be paid and use the proceeds from the auction to pay the social insurance premiums.
Chapter 8 Social Insurance Funds
Article 64 The social insurance funds include the basic pension insurance fund, the basic medical insurance fund, the work-related injury insurance fund, the unemployment insurance fund and the maternity insurance fund. Each of the social insurance funds shall establish separate accounts based on the lines of social insurance and shall conduct accounting for separate accounts and implement the uniform accounting system of the State.
The social insurance funds are earmarked for specific purposes and any organization and individual shall not embezzle or misappropriate the funds.
The basic pension insurance fund will be coordinated on a national basis gradually and the other social insurance funds will be coordinated on a provincial basis gradually. The specific time frame and steps will be prescribed by the State Council.
Article 65 The social insurance funds normally adopt balanced budgets.
When the amount in the social insurance funds is insufficient to make payments, the people’s governments above the county level will grant subsidy.
Article 66 The social insurance funds establish budgets based on the coordination levels. The budgets of the social insurance funds are prepared separately based on the social insurance items.
Article 67 The preparation, examination and approval of the drafts of the budgets and final accounts of the social insurance funds shall follow the provisions of the laws and the State Council.
Article 68 The specific administrative measures governing the deposit of social insurance funds into the special financial accounts shall be prescribed by the State Council.
Article 69 The social insurance funds shall engage in investment operation in accordance with the provisions of the State Council to preserve and add value under the premise of guaranteeing the safety of the funds.
The social insurance funds shall not engage in investment operation in violation of the rules, shall not be used to balance other government budgets, shall not be used to construct or convert office premises and pay the outlay for staff, the operation fee and management fee or used for other purposes in violation of the provisions of the laws and administrative regulations.
Article 70 A social insurance agency shall regular make known to the public the status of participation in social insurance and the income, expenditure, balance and gain of the social insurance funds.
Article 71 The national social security fund established by the State shall comprise the funds allocated from the budget of the central treasury and the funds raised by other methods approved by the State Council and shall be used as replenishment and adjustment for social security expenditure. The national social protection fund shall be managed and operated by the management and operation institution for national social security fund and shall seek to preserve and add value under the premise of guaranteeing the safety of the fund.
The national social security fund shall announce to the public the status of its revenue and expenditure, management and investment operation on a regular basis. The finance departments, social insurance administration departments and audit departments under the State Council shall supervise the revenue and expenditure, management and investment operation of the national social security fund.
Chapter 9 Handling of Social Insurance
Article 72 The coordinated regions shall establish social insurance agencies. The social insurance agencies may, based on the needs of their work, establish branches and service networks in their own coordinated regions upon the approval of the local social insurance administration departments and the authorities responsible for the administration of the institutional establishments.
The outlay for the staff of the social insurance agencies and the basic operation fee and management fee incurred from the handling of social insurance shall be provided by the treasury at the same level in accordance with the provisions of the State.
Article 73 The social insurance agencies shall establish and improve business, finance, security and risk management systems.
The social insurance agencies shall pay the full amount of social insurance benefits as scheduled.
Article 74 A social insurance agency shall handle, compile statistics on, investigate and obtain data necessary for social insurance work. The relevant entity and individual shall provide the truthful data in a timely manner.
A social insurance agency shall establish the record for an employing entity in a timely manner, prepare a complete and accurate record of the social insurance data such as the personnel participating in social insurance and the premium payment and shall properly keep the original evidence of registration and declaration and the accounting documents of payment and settlement.
A social insurance agency shall prepare a timely, complete and accurate record of the premium payment of an individual participating in social insurance and the personal interest of the individual, such as the employing entity’s payment for him/her and his/her enjoyment of the social insurance benefits and shall send the personal interest record to the individual free of charge on a regular basis.
An employing entity and individual may make free enquiries to the social insurance agency, check the records of premium payment and the enjoyment of social insurance benefits and request the social insurance agency to provide relevant services such as social insurance consultation.
Article 75 The national social insurance information system is built jointly by the people’s governments above the county level according to the principle of accountability at different levels under the centralized plan of the State.
Chapter 10 Supervision of Social Insurance
Article 76 The standing committees of people’s congresses at all levels listen to and examine the specialized work report of the people’s governments at their own levels on the status of the revenue and expenditure, management and investment operation and supervision and examination of the social insurance funds, organize law enforcement examination on the implementation status of this Law and exercise supervisory authority in accordance with the law.
Article 77 The social insurance administration departments of the people’s governments above the county level shall strengthen the supervision and examination of the status of the compliance with social insurance laws and regulations by employing entities and individuals.
When the social insurance administration department conducts supervision and examination, the employing entity and individual under examination shall truthfully provide information relating to social insurance and shall not reject the examination or report false information or conceal information.
Article 78 The finance departments and audit authorities shall supervise the status of the revenue and expenditure, management and investment operation of the social insurance funds according to their respective duties.
Article 79 If a social insurance administration department discovers any problem when supervising and examining the status of the revenue and expenditure, management and investment operation of the social insurance funds, it shall put forward a rectification proposal, make the decision on the handling of the case or present the proposal on the handling of the case to the relevant administration department. The examination result of the social insurance funds shall be open to the public on a regular basis.
A social insurance administration department is entitled to adopt the following measures when supervising and examining the social insurance funds:
(1) consult, record and copy data relating to the revenue and expenditure, management and investment operation of the social insurance funds and seal the data that may be transferred, concealed or lost;
(2) enquire the entity and individual related to the investigation matters and request them to explain on the issues relating to the investigation matters and provide relevant documentary evidence;
(3) prohibit and order the rectification of acts involving the concealment, transfer, embezzlement and misappropriation of social insurance funds.
Article 80 A people’s government of the coordinated region shall establish a social insurance supervision commission that comprises the representatives of the employing entities, the representatives of the personnel participating in insurance, the representatives of trade unions and experts, to keep abreast of and analyze the revenue and expenditure, management and investment operation of the social insurance funds and provide consultation opinions and recommendations on social insurance work and implement social supervision.
A social insurance agency shall report to the social insurance supervision commission the status of the revenue and expenditure, management and investment operation of the social insurance funds on a regular basis. The social insurance supervision commission may engage an accounting firm to conduct annual audit and specialized audit on the status of the revenue and expenditure, management and investment operation of the social insurance funds. The audit results shall be disclosed to the public.
If the social insurance supervision commission discovers any problem in the revenue and expenditure, management and investment operation of the social insurance funds, it is entitled to put forward a rectification proposal or present to the relevant departments the proposal on handling the illegal behavior of the social insurance agency and its staff in accordance with the law.
Article 81 The social insurance administration departments and other relevant administration departments, the social insurance agencies, the social insurance premium collection institutions and their staff shall keep the information of the employing entities and individuals confidential in accordance with the law and shall not divulge the information in whatever ways.
Article 82 Any organization or individual is entitled to report or complain about acts in violation of the social insurance laws and regulations.
The social insurance administration departments, health administration departments, social insurance agencies, social insurance premium collection departments, finance departments and audit departments shall handle the reports and complaints within the scope of duties of their own departments and institutions in accordance with the law. If the report or complaint is not within the scope of duties of their own departments and institutions, a written notice shall be issued to and the case shall be transferred to the department or institution entitled to handle the case for handling. The department or institution entitled to handle the case shall handle the case in a timely manner and shall not pass the buck.
Article 83 If an employing entity or individual thinks that the act of a social insurance premium collection institution prejudices its or his/her legal interest, the employing entity or individual may apply for administrative review or initiate administrative litigation in accordance with the law.
If a social insurance agency does not handle social insurance registration, assess social insurance premiums, pay social insurance benefits, handle the formalities for the transfer and renewal of social insurance in accordance with the law or is engaged in any act that prejudices other social insurance interest, an employing entity or individual may apply for administrative review or initiate administrative litigation in accordance with the law.
An individual having a social insurance dispute with the employing entity in which he/she works may apply for mediation or arbitration or initiate litigation in accordance with the law. If an employing entity prejudices the social insurance interest of an individual, the individual may request the social insurance administration department or social insurance premium collection institution to handle the case in accordance with the law.
Chapter 11 Legal Liabilities
Article 84 If an employing entity does not go through the formalities for social insurance registration, the social insurance administration department shall order it to make rectification within the stipulated period. If rectification is not made within the stipulated period, the employing entity shall be imposed a fine from one to three times the amount of the social insurance premium that should be paid. The personnel directly in charge and other personnel subject to direct liability shall be imposed a fine of more than RMB 500 and less than RMB 3,000.
Article 85 An employing entity that refuses to issue the proof of the termination or severance of labor relationship shall be handled in accordance with the Labor Contract Law of the People’s Republic of China.
Article 86 If an employing entity does not pay the full amount of social insurance premiums as scheduled, the social insurance premium collection institution shall order it to make the payment or make up the difference within the stipulated period and impose a daily fine equivalent to 0.05% of the overdue payment from the date on which the payment is overdue. If payment is not made within the stipulated period, the relevant administration department shall impose a fine from one to three times the amount of overdue payment.
Article 87 If a social insurance agency or a social insurance service institution such as a medical institution or an entity engaging in drug business gets payment from the social insurance funds by cheating through fraud, counterfeit documentary evidence or other means, the social insurance administration department shall order it to return the social insurance funds obtained by cheating and impose a fine of more than twice but less than five times the amount obtained by cheating. If the entity is a social insurance service institution, the service agreement shall be terminated and the personnel directly in charge and other personnel subject to direct liability having practice qualifications shall have their practice qualifications revoked in accordance with the law.
Article 88 If social insurance benefits are obtained by cheating through fraud, counterfeit documentary evidence or other means, the social insurance administration department shall order the party to return the social insurance funds obtained by cheating and impose a fine of more than twice but less than five times the amount obtained by cheating.
Article 89 A social insurance agency and its staff engaging in any of the following acts shall be ordered by the social insurance administration department to make rectification. If loss is incurred by the social insurance funds, an employing entity or an individual due to such acts, the compensation liability shall be assumed in accordance with the law and the personnel directly in charge and other personnel subject to direct liability shall be punished in accordance with the law:
(1) do not perform the statutory duties relating to social insurance;
(2) do not deposit the social insurance funds into the special financial accounts;
(3) pocket or refuse to pay the social insurance benefits as scheduled;
(4) lose or distort social insurance data and personal interest records such as payment records and records on the enjoyment of social insurance benefits;
(5) other acts in violation of the social insurance laws and regulations.
Article 90 If a social insurance premium collection institution changes the base number or the rate of the social insurance premium payment, which leads to the under-charge or over-charge of the social insurance premium, the relevant administration department shall order the institution to pursue the payment of social insurance premium that should be made or refund the social insurance premium that should not be paid and impose penalty on the personnel directly in charge and other personnel subject to direct liability in accordance with the law.
Article 91 If a party conceals, transfers, embezzles or misappropriates the social insurance fund in violation of the provisions of this Law or engages in investment operation in violation of the rules, the social insurance administration department, finance department or audit authority shall order the recovery of the fund. The illegal gain (if any) shall be confiscated and the personnel directly in charge and other personnel subject to direct liability shall be punished in accordance with the law.
Article 92 If a social insurance administration department and other relevant administration departments, a social insurance agency, a social insurance premium collection institution or their staff divulge the information of an employing entity or individual, the personnel directly in charge and other personnel subject to direct liability shall be punished in accordance with the law. If loss is incurred by an employing entity or an individual as a result of the divulgement of information, the compensation liability shall be assumed.
Article 93 If the person working for the State abuses his/her power or neglects his/her duties or engages in misconduct to seek private gains when handling the work with respect to the administration and supervision of social insurance, he/she shall be punished in accordance with the law.
Article 94 If a criminal offense in violation of the provisions of this Law is constituted, the criminal liability shall be pursued in accordance with the law.
Chapter 12 Supplementary Provisions
Article 95 Rural residents working in urban cities shall participate in social insurance in accordance with the provisions of this Law.
Article 96 If the land owned collectively by the village is expropriated, the full amount of the social insurance premiums for the farmers whose land is expropriated shall be arranged and the farmers whose land is expropriated shall be included in the corresponding social insurance system in accordance with the provisions of the State Council.
Article 97 Foreigners working within the territory of China shall participate in social insurance by reference to the provisions of this Law.
Article 98 This Law shall come into force on July 1, 2011.
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