The "Regulations on the Administration of Social Insurance in China" were officially passed during the 11th executive meeting of the State Council on July 21, 2023, and are slated to come into effect on December 1, 2023.

The new regulations encompass various social insurance schemes, including basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance.

Several citizen-friendly measures have been introduced, encompassing:

1. Streamlining documentation: Enhancing operational efficiency through information sharing and optimizing service delivery for an improved user experience.

2. Standardizing processing times:

a. Services such as applying, modifying, and canceling social insurance registration must be completed by the social insurance agency within 10 working days of receiving the application.

b. For pension claims, the social insurance agency is required to complete the processing within 20 working days of receiving the application.

c. Individuals applying for maternity allowances under maternity insurance should have their applications processed within 10 working days from the date of submission.

d. Personal claims for unemployment benefits must be processed by the social insurance agency within 10 working days from the application date.

e. Applications for subsidies such as occupational training must be fully processed within 10 working days.

3. Clarifying legal responsibilities:

• Actions involving fraud, forged documentation, or other means to obtain disbursements from the social insurance fund will result in the relevant authorities ordering the repayment of funds and imposing fines ranging from 2 to 5 times the fraudulent amount.

• Designated medical institutions engaging in such activities may face suspension of relevant responsibilities related to social insurance services involving the use of social insurance funds for a period of 6 months to 1 year, until the social insurance agency terminates the service agreement.

Below are targeted Q&A segments designed to elucidate commonly encountered questions pertaining to social insurance:

1. Do foreign employees need to contribute to social insurance programs?

Yes, they are required to. Since July 1, 2011, the 'Social Insurance Law' has been implemented. According to this regulation, foreigners employed within the territory of China are obligated to participate in social insurance as stipulated by the law.

2. Is the remittance of social insurance contributions obligatory during the probationary period?

Yes. Employers are mandated to initiate social insurance registration for employees within a 30-day window from their commencement of service.

3. Does not signing a contract mean that I do not have to pay social insurance contributions?

No, it doesn't. As long as a labor relationship exists between the worker and the employer, social security contributions must be paid.

4. When does social insurance need to be filed? When does it need to make deductions?

Social insurance needs to be declared within the current month, before the 15th of each month to declare the deduction, as well as within the 16th to the 25th of each month automatic declaration and deduction, cannot be across the month, or need to pay late fees. Note that starting from this month (December 1, 2023), Shanghai's social security will cancel automatic deductions, requiring individuals to make their own contributions.

5. How often is the social security base adjusted?

Generally speaking, the social security base is adjusted once a year in July in every city.

6. Is it permissible for individuals to affiliate with an entity to fulfill social insurance contributions?

No. Any attempt by an entity or individual to acquire social insurance eligibility through fictitious labor relations or deceptive means is strictly prohibited.

7. Can individuals, concurrently receiving unemployment benefits, partake in pension insurance as flexible employees?

Yes. Individuals in receipt of unemployment benefits are permitted to engage in basic pension insurance as flexible employees and are responsible for personal contributions.

Conclusion

The new regulations conspicuously delineate measures for user-friendly services and administrative efficiency, leveraging streamlined documentation, standardized processing timelines, and advanced information-sharing mechanisms. Future endeavors should focus on enhancing institutional personnel training, refining policy frameworks, bolstering support and guarantee mechanisms, and continually optimizing services to ensure the efficacy of policies that prioritize the welfare of the populace. Social insurance in China stands not only as a legal obligation for employers but as a pivotal instrument for basic life security and economic loss mitigation.

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