China Statutory and Private Employee Benefits, 2023 Update

China has one of the most comprehensive and well-established welfare systems in the world. It is predominantly controlled by the social security system. The China employee benefits report provides in-depth industry analysis, information, and insights of employee benefits, overview of the state and compulsory benefits, detailed information about the private benefits, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in China.

China Statutory and Private Employee Benefits Report Overview

China has one of the most comprehensive and well-established welfare systems in the world. It is predominantly controlled by the social security system. Welfare benefits in the country are disbursed under various schemes, such as cash benefits, healthcare, education, housing, and personal social services. Cash benefits are classified into three subgroups: national insurance, means-tested, and non-contributory benefits.

China’s social security system includes various social insurance schemes, social assistance, and supplementary schemes. The Ministry of Human Resources and Social Security (MHRSS), which administers the Social Insurance Law, is the apex body responsible for effectively functioning the country’s social security system. As most social security schemes do not meet employees’ requirements, several private companies offer voluntary supplementary plans.

The China employee benefits report provides in-depth industry analysis, information, and insights of employee benefits, overview of the state and compulsory benefits, detailed information about the private benefits, insights on various central institutions responsible for the administration of the different branches of social security and the regulatory framework of the employee benefits in China.

Employee Benefit Regulations in China

The various employee benefits laws that are applicable in China are:

• Labor Law, 1994
• Employment Contract Law, 2007
• Social Security Law, 2008
• Union Law, 2009
• Collective Contracts Regulations, 2003
• Work Safety Law, 2002
• Law of Prevention and Control of Occupational Diseases, 2001
• Mine Safety Law, 1992
• Labor Dispute Mediation and Arbitration Law, 2007

For more insights on employee benefit regulations in China, download a free report sample

China Employee Benefits Segmentation by State and Compulsory Benefits

The key state and compulsory benefits offered by employers in China are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Death Benefits: This scheme covers all employees and self-employed persons who work in urban areas and casual workers, civil servants, certain public sector employees, small business holders without employees, and civil servants. In some regions, the coverage for urban self-employed individuals is voluntary. Certain regions of China also have special arrangements for former farmers and internal migrants. This benefit is provided for events of work-related death as well as non-work related.

Workers’ Compensation Insurance: Workmen’s compensation is a local government-administered social insurance system. In the case of non-participating enterprises, an employer liability system is available. It covers employees working in enterprises, private non-enterprise units, civil associations, foundations, law firms, institutions, and accounting firms. The benefits included under workmen’s compensation are temporary disability benefits, permanent disability benefits, survivor’s benefits, and medical benefits. The Department of Work Injury Insurance (under MOHRSS) provides general guidance and ensures the regulations are followed.

Maternity and Paternity Benefits: This scheme covers medical costs that are out of maternity, including those related to birth control. This coverage is provided to employees and their spouses in urban areas, working in enterprises, social groups, and non-profit and government organizations. Voluntary coverage is provided to self-employed individuals. This benefit is taken care of by the department of medical insurance (which operates under the MHRSS).

To know more about state and compulsory employee benefits in China, download a free report sample

China Employee Benefits Segmentation by Private Benefits

The key private benefits offered by the employers of China are retirement benefits, death benefits, medical benefits, disability benefits, accidental death and dismemberment benefits, and other benefits.

Retirement Benefits: In China, private firms can fix the benchmark for the retirement benefit they provide. Employers provide supplementary pension benefits in the form of enterprise annuity plans purchased from insurers. Most private firms prefer to purchase annuities like enterprise annuities collectively set up by employers and employees. Some employers, particularly in urban areas, also offer supplemental plans. The Enterprise Annuity (EA) pension system has been rapidly growing since it was launched in the country. However, the adoption of EA plans is still very low and mostly large enterprises provide this benefit.

Medical Benefits: In China, most employers provide supplementary medical benefits to their employees obtained by subscription to commercial group health insurance plans. A few employers offer group lifelong serious disease or illness insurance plans that cover serious illness and mild illness along with death benefits.

Disability Benefits: Short-term disability is covered under employers’ liability insurance plans. A few employers provide the benefit under disability income replacement plans. Employees working in manufacturing, retail, services, offices, real estate, and hospitality are covered.

To know more about private employee benefits in China, download a free report sample

Scope

This report provides a detailed analysis of employee benefits in China –

• It offers a detailed analysis of the key government-sponsored employee benefits, along with private benefits.
• It covers an exhaustive list of employee benefits, including retirement benefits, death in service, long-term disability benefits, medical benefits, workmen’s compensation insurance, maternity and paternity benefits, family benefits, unemployment benefits, long-term care benefits, leaves and holidays and private benefits.
• It highlights the economic and regulatory situations relating to employee benefits in China.

Key Highlights

• The Department of Pensions, Department of Medical care, Department of Unemployment, and Local Government Social Insurance Agencies organizations are responsible for the functioning of the overall social security system.

• A person’s national insurance contribution is determined based on their income.

• An insured person who is unemployed or unable to work and whose benefits have been exhausted is entitled to a credited contribution.

• In China, employers provide voluntary retirement benefits to their employees through occupational pension schemes, and enterprise annuity plans.

Reasons to Buy

• Make strategic decisions using in-depth information related to employee benefits in the country.
• Assess employee benefits of the market, including state and compulsory benefits and private benefits.
• Gain insights into the key employee benefit schemes offered by private employers in the country.
• Gain insights into key organizations governing employee benefits market, and their impact on companies.