international employment law firm alliance L&E Global

China: General Office of the State Council Launched the Regulations on Social Insurance Handling

Authors: Carol Zhu and Lynsey Liu

On the 1st of September, the State Council launched the Regulations on Social Insurance Handling (the “Regulations”), which will come into force on 1 December 2023 as the “last kilometre” of the social insurance system.

The Regulations consist of 63 articles divided into seven chapters, which are applicable to the handling of basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance as stipulated by the State.

Based on the Regulations, employers and individuals must register for social insurance when they register with the registration authority. Individuals can use their civil identity number as their social security number for registration. Any changes in participation information must be promptly reported to the social insurance agency that will process applications for change or cancellation of registration. When transferring or renewing social insurance relations, the agency shall complete the procedures within the time limit and inform the employers and individuals of the results.

Employers and individuals can apply for a basic pension from the social insurance agency, which will complete the application within 20 working days. In the event of death, surviving family members can apply for funeral grants and pensions. Medical expenses and maternity expenses will be directly settled with the medical institution. Individuals can also apply for manual reimbursement, which will be examined and approved within a specified period. During unemployment, the social insurance agencies shall contribute the basic medical insurance premiums for the individuals using the unemployment insurance fund. Subsidies for vocational training shall be processed by the social insurance agency. Social insurance affairs can be handled through various channels, including government websites, mobile devices, self-service devices, and the social insurance agency window. Barrier-free services shall be provided for special groups.

Key Action Points

Employers and individuals shall follow the Regulations strictly to register for social insurance and promptly report changes in participation information as required.