China has updated their social security insurance policies with some noteworthy changes.

Jurisdiction China

What’s new?

1. Faster social security card application process The State Council and the Ministry of Human Resources and Social Security will facilitate a faster application process for social security cards through the nationwide integrated online government service platform.

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2. Merging of Maternity Insurance with Basic Medical Insurance The State Council is combining Maternity Insurance and Employee Basic Medical Insurance for employees. Maternity allowance and birth delivery medical expenses will be paid from the basic medical insurance fund.

3. Withdrawing pension payments Retirees can use their social security card to receive their pension payments.

4. Online system for pension insurance transfer Inter-district pension insurance account transfers can now be completed through the online government service platform. Previously, if an individual changed to a new job in another city they had to visit offices in both cities, in person, to transfer the pension account.

5. Faster unemployment insurance application approval process The Ministry of Human Resources and Social Security announced they would speed up the online application process for unemployment insurance premiums.

What’s the reason for the change?

The government of China wanted to improve and digitise the social security insurance process.

When does it come into force?

These changes will or have already taken effect in 2020. What should you do now? Companies operating in China need to understand the changes in the SSI process and communicate the changes to employees. This may require modifying internal processes and updating employee handbooks. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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