PRC Social Security Scheme essays

PRC Social Security Scheme essays Major Characteristic of PRC Social Security Scheme - Only applicable to Chinese local employees - Local requirements may vary from locality to locality. Structure of Social Security Scheme Decisions of the State Council Concerning the Establishment of a Unified System of Basic Old-age Insurance for Staff and Workers of Enterprises(July 16, 1997) Structure of the Basic Pension Scheme - Requires mandatory participation by enterprises and employees; - Maximum contribution of 20% of the total wages of the enterprises in general unless approved by Labour Bureau and Ministry of Finance. - For a foreign investment enterprise, the total wages only cover Chinese local employees wages. a. start at 7% of employee salary in 1997, to be gradually reduced to 3%, for contribution into the Basic Pension Individual Account b. 13% to 17% goes to Basic Pension Pooling Account - Start at 4% of employee salary in 1997, to be gradually increased to 8% - Contribution goes to Basic Pension Individual Account National Requirement Unemployment Insurance Unemployment Insurance Regulation issued by State Council on January 22, 1999. - Requires mandatory participation by enterprises and employees; - Enterprise refers to Urban enterprises and institutions, including: ...