중국노동법 (사회보험법 개관)

01 Social insurance

The 5 percent refers to the five major insurances of old-age insurance, medical insurance, unemployment insurance, birth (birth) insurance and fantasy (industrial) insurance. The 5險1 gold was added to the five major insurances plus the public kitchen allowance. China's five major social insurance programs are legal information tests, which are enforced by national laws, as is Korea's. The corporate burden ratio of China's top five insurance plus one kitchen public funds is over 40 percent of wages, which is a significant business pressure factor for companies.

 

1. Standards for social insurance

Social insurance premium burden ratio
Social insurance premiums are paid separately by users and workers, and the entity has a payment obligation for all five major insurance policies, but the worker has a payment obligation for the remaining three, excluding birth and fantasy insurance. There are common guidelines set in China, but local governments are exercising their discretion in line with the economic conditions of the region, setting specific payment standards.

Standard for payment of social insurance premium

Payment period (基数=base) × payment ratio

1 Rate of payment: Social insurance coverage ratio varies from region to region, so the level of economic income varies.
They allow for adjustment, which varies somewhat depending on region and year of payment.
2 Number of days paid: The standard is to divide the total annual wage of an employee by 12 for the previous year (January-December), but the upper limit becomes the lower limit when the "top limit" is lower than the "lower limit."
The upper and lower limits vary somewhat depending on regional policy, but most regions, including Beijing and Shanghai, set upper and lower limits according to the following rules.
ᄋ Upper limit: Average wage for the previous year in the region x 3 times
ᄋ Lower bound: Average monthly wage for the previous year in the region x 60%

 

 

 

Adjustment of Social Insurance Periods
Social insurance term (基数=Base) is established once a year in most regions. Each city has a period of readjustment and declaration of the social insurance term during the first half of the year. At that time, each employee decides the social insurance term and obtains his/her signature and reports it to the social insurance agency as the social insurance payment period of the year. Once the payment period is confirmed, the social insurance premium shall be calculated and paid on a fixed monthly basis based on the base amount for one year. Even if the salary changes during the year due to diarrhea, higher wages, and promotion, the number of people who have filed a fixed report cannot be changed.
On the other hand, some cities, such as Shenzhen and the Soju Industrial Park, are exceptionally subject to changes in the number of social insurance payments each month. In other words, social insurance premiums are calculated and paid every month based on the total salary of the previous month.

the principle of reporting by social insurance jockey
The social insurance term will be the sum of each employee's total income divided by 12 over the previous 12 months. Horsemen include pre-tax wages, various allowances and various subsidies (work allowance, meal subsidy, telecommunications allowance, etc.) and extra work expenses. However, items that are required to be paid by separate ordinances, such as high-temperature allowances in summer, heating allowances in winter, child-bearing expenses, and sanitary expenses, do not need to be included in the calculation of flag numbers.
In most areas, the term of payment for social insurance is set at the upper and lower limits of 300% of the previous year’s social average wage in the city (40% lower, lower minimum wage, etc.).

[Number of employees who entered the year]
The first month's wages will be the jockey for the year. The new employees' term for the year is...
In case the total amount of salary is specified in the labor contract, the full salary for the month of employment (actual work)
It's not based on the number of days, it's based on the amount paid for one month's work.
Report.

2. Risk of illegal payment of social insurance

In China's local corporation's social insurance premium filing, there are many cases in which the company reports less of the social insurance coverage standard, in addition to the company's cost-reduction and the relief of the employee's personal burden, i.e., in a friendly and well-to-do manner. However, it is important to note that the Social Insurance Act, which significantly strengthened supervision and penalties for unpaid or insufficient payments, went into effect in 2011, thereby increasing the risk.
It should be noted that if an employee is subject to an investigation by the social insurance agency at some point in the future, he or she may be subject to fines and fines for past deficiencies because it benefits from the immediate relief of his or her own personal burden.
In addition, as the young population is shrinking and the population ages, the spending growth rate of the pension fund has been far outpacing the income growth rate, with each province recently greatly strengthening the supervision of corporate social insurance payments. There is a need for more attention from businesses to the normal payment of social insurance.

 

 

(1) Risk of unpaid social insurance premiums and insufficient payments

1 Risk of supplemental payments due to crackdown by social insurance organizations
The Social Insurance Organization selects a certain percentage of businesses each year in the material city, investigates the social insurance payment situation, takes supplementary payment measures under the Social Insurance Act, and other risks that are detected upon complaint from employees exist.
In the event that an entity is caught short-payment of social insurance premiums, the social insurance agency shall order supplemental payments and also collect 0.05% (annual interest of 18.25%=0.05 days) per day from the date of non-payment. If the payment is not made after the due date, a fine of 1-3 times the amount outstanding (Social Insurance Act 86).
2 Risk of conflict with employees at retirement
It is highly likely that the company will ask the management to pay back the past portion, since more employees who are registered here and close to the legal retirement age need to be added to receive more pension after retirement. In this case, the supplemental payments are based on the current level of wages and the entity is required to pay up to the amount of overdue payments. In the case of foreign employees, especially foreign companies, the company has saved as much of the company's social insurance premium in the past, so there is a possibility that it will ask for cash compensation from the company and press charges against it if it does not comply.
3 Reasons for unpaid social insurance, risk of employee resignation and economic compensation claim
If the entity does not pay social insurance, the employee may at any time terminate the labour contract and demand payment of the economic compensation (Article 38 of the Labor Contract Act). It is difficult for the company to dismiss any breach of discipline. This is because the employee can select first, and then file a labor arbitration request for resignation and economic compensation.
4 In the event of a fantasy accident, there is a risk of additional compensation for the Mikabun.
If a fantasy accident occurs and is recognized as a fantasy, the compensation items of the fantasy insurance fund will be paid based on the number of people who pay social insurance. For example, if you have paid social insurance based on a wage of 5,000 won and a minimum payment period of 2,000 won, the Fantasy Insurance Fund will reimburse you based on a fantasy insurance ordinance standard based on 2,000 won, in which case the employee affected by the accident will ask the company to compensate you for the difference. Furthermore, in the event of a fantasy accident in the absence of social insurance, the company should take over all the expenses of the Science and Technology Insurance Fund and pay full compensation on the basis of the policy.
5 Risk of compensation by the company in the event of serious illness of employees
If medical expenses are incurred due to a severe disease outbreak, the medical insurance should cover the cost of the hospital.
The company is liable for compensation for the treatment costs. In fact, a few years ago, when an employee contracted leukemia without social insurance at a Korean company, the company paid nearly 200,000 dollars in settlement money to end the labor relationship.

(2) The legal effect of the social insurance waiver document

Labor-management agreements or waiver agreements for avoiding social insurance shall be fundamentally invalid and shall be legally liable for retroactive payments to the three major insurances of nursing, unemployment insurance and medical insurance (excluding public and child insurance, which are retroactively excluded) upon detection by the social insurance organization or based on employee complaint and employment start date.

[working-level measures]

If a person is forced to hire a public figure from a foreign country who is highly flexible in manpower and is reluctant to buy social insurance, he or she must receive a "give-up letter" at the time of joining the company.

1 Requesting the company to give up social insurance under the circumstances of the company, confirmation of signature is required by the company
I'll take it
[Approval] For *** the employee shall demand that the company not pay social insurance, and will not terminate the labor contract at a later date, citing the reasons for the company's unpaid social insurance, and all results shall be borne by him.
因为**** 社,,,自 不
2 When a certain amount of social insurance subsidy is included in the salary (mainly outside the country)
Workers of origin), pay a separate item in the wage statement, and insert the following clause in the approval form. In this case, the government cannot easily bring up the demand for supplemental social insurance payments due to the pressure to return the social insurance subsidy.
[Approval] If a worker asks for a supplementary payment, all social insurance subsidies paid shall be returned accordingly. 如劳动,社
3 The company needs to prepare for unexpected accidents such as workers' illnesses and injuries, and commercial insurance for social insurance defaulters.