英国第五次人权网络研讨会 The fifth network forum on human rights in UK
The Reform and Development of Social Security System in China
Zou Hailin
Article 9 of the International Covenant on Economic, Social and
Cultural Rights provides: ‘The States Parties to the present Covenant
recognize the right of everyone to social security, including social
insurance.’ 1The fourth paragraph of article 14 of the Constitution of the
People’s Republic of China provides: ‘the state develops adequate
social security system suitable for its economic development.’ The
Article 45 of the Constitution of the People’s Republic of China provides:
‘Citizens of the People's Republic of China have
the right to material assistance from the state and society when they
are old, ill or disabled. The state develops social insurance,
social relief and medical and health services that are required for
citizens to enjoy this right.
The state and society ensure the livelihood of
disabled members of the armed forces, provide pensions to
the families of martyrs and give preferential treatment to the
families of
military personnel.The state and society help make arrangeme
nts for the work, livelihood and education of the blind, deaf-mutes
and other handicapped citizens. ’ The enjoyment of the right to social
security is the inherent right of each citizen, the state shall create basic
conditions necessary for access to the social security and are obliged to
assure them to have access to the social security permitted by economic
and social resources in acountry.
1. Basic Framework of China's Social Security System
In China, the social security system consists of social insurance, social
relief, social welfare, society special care, basic living guarantee of enterprises'
laid-off workers and reemployment system, etc.. 2 Social insurance is the core
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Article 22 of " Declaration of Human Rights of the world " stipulates : "Everybody, a member as society,
have the right to enjoy the social security, and have the right to enjoy his personal dignity and freedom
development essential economy , realization of the society and all sorts of rights of culture of personality ,
these kind realize and accord with organizations and resource situations of various countries with
international cooperation hard through the country. "
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The society relieves, social welfare, society is it is it involve special rights and interests of social groups
of difficulty mainly with laid-off workers of state-owned enterprises basic living guarantee and system of
reemploying etc. to find a room for to give special care to, China has made corresponding efforts too in
this respect. But these contents and social insurance systems are different to some extent, this text does
not discuss especially . This text will discuss the reform and development of the social insurance system
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of China's social security system, including the endowment insurance,
unemployment insurance, medical insurance, birth insurance and job-related
injury insurance. The basic life guarantee of laid- off workers of state-owned
enterprises and reemployment system provides safeguards to resolve
historical problems.
Generally speaking, China's social security system has already had a
history of more than 50 years, and its development may be divided into
following three stages.
(1) Embryonic form of the social security system
The social security system of China was established at the beginning of the
1950’s. The Government Administration Council of former People's Central
Government issued the Labor Insurance Regulations of the People's Republic of China in
February of 1951, beginning to set up the social security system for the
workers of urban enterprise with characteristic of " low salary, more
employment, high subsidies, high welfare". After this, the endowment
insurance, medical insurance and treatment of the wounded or disabled are
stipulated by the country, and the cost for labor insurance is beard by
enterprises and government finance. During this period, China has set up the
public relief system for the poor population in urban and rural areas. For
example, the system of ‘the household enjoying the 5 guarantees’, which
means to offer five kinds of life and material care (food, clothes, house,
medicine, funeral) for the senior citizens who have no definite obligator of
supporting, no labor ability and no source of income.
2. Reform of China's social security system
Since the 1980’s, China has begun to reform the social security system reform
which has lasted for more than 30 years. By the middle period of 1990s, the
reform of the social security system came to an end. At this stage, the reform
of China's social security system was still comparatively comprehensive.
Article 70 of Labor Law of the People's Republic of China stipulates that ‘ The country
will develop the social insurance, set up the system of social insurance, set up
social insurance fund, make the laborers accessible to help and compensation
in case of old, ill, job related injures, unemployment or giving birth, etc.." Article
71 stipulates that ‘The social insurance level should be in conformity with
social economy development level and ability to society bearing.’ Reform of
the social insurances such as endowment insurance, unemployment
insurance, and medical insurance have been started in most areas (provinces,
of China mainly.
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autonomous regions and municipalities directly under the Central Government)
of China. The reform of endowment insurance system has made great
progress, and the reform of medical insurance system has been started in an
all-round way. The urban social security system has been improved, and the
integration of social insurance has been realized basically.
In 1993, China began to launch the reform on urban social relief system in a
large scale and tried to establish the minimum living security system. In the
rural areas, the system of ‘five guarantees ‘ was pursued further. The State
Council issued ’Regulations on the Five Guarantees in Rural Areas’ in January of 1994,
providing that the civil affairs department of people's government at county
level shall offer five kinds of life and material care (food, clothes, house,
medicine, funeral) for the senior citizens, disabled people and minors, people
who have no definite obligator of supporting, no labor ability and no source of
income.
In this period, the basic objective of China's social security system reform is to
set up the social security system that is independent of enterprises and
administration departments and is regulated, with multi-channel funds and
socialized administration services. Its main characteristic is: basic assuring,
extensive covering, multi-level and gradual integration. That means: in
conformity with economic development level, the compulsory setting up of the
basic guarantee aims to meet people's basic life's needs; the social security
scheme will gradually covers all citizens; in addition to the basic insurances,
the country promotes the development of others forms of insurances, strives to
form the multi-level social security system; Through the reform and
development, implement the nationwide integrated social security system
progressively.
3. The Basic Formation of the Social Security System
(1) Since the middle period of 1990s, the social security system of China has
made great progress after the reform, and the social security system has taken
shape basically.
At present, the basic policy of social insurance system has already been made,
and the State Council has issued administrative regulations or rules related to
basic endowment insurance, unemployment insurance, basic medical
insurance, job-related injury insurance, birth insurance, etc. in succession, and
the social insurance has already covered most urban workers and retired
personnel, and migration workers in some regions are also covered by the
social insurance scheme. In 2001, Chinese Government began to launch the
comprehensive pilot project of perfecting the urban social security system in
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Liaoning Province.
By 1999, all cities and counties that have organic towns in China have set up
the minimum living security system, and the State Council issued Regulations of
Minimum Living Guarantee for Urban Population, offering the most basic living
guarantee to all residents in the city. The minimum living guarantee fund of the
urbanite is included in the financial budget by the local people's government.
Local government determines the minimum living guarantee standard
according to local urbanite’s basic life essential expenses. Families with per
capita income lower than standard minimum living guarantee can apply for the
subsidies. The minimum living security system has been set up in some rural
areas correspondingly too. In 2001, the number of people enjoying the urban
minimum living guarantee and relieving in the whole country was up to
11,707,000. The number of people of enjoying urban minimum living
guarantee was 20,530,000 in 2002, and the number of people of enjoying rural
minimum living guarantee was 4,040,000. The number is 22,350,000 and
3,950,000 respectively in 2003.
Meanwhile, in order to strengthen the unified planning of social security system
and management, supervision of the social security fund, China has carried
out a series of reforms on the management system of the social security. The
social insurance formerly managed by several administrative departments
separately is now managed by labor and social security administrative
departments, and the labor and social security administrative departments at
all levels have also established corresponding social insurance handling
mechanism to undertake the managements of the concrete affairs of social
insurance. The social insurance affairs undertaken by enterprises in the past
have been transferred to the social organization progressively, namely social
insurance treatment implements socialized granty, and social insurance
targets are managed in the community. China has also strengthened the
administrative management and supervision on the use of the social insurance
fund. The social insurance fund is listed in the special account of the
government finance, managed according to the principle of "separation
management for revenue and expenditure ", and fund is allocated for its
specified purpose. The labor and administrative departments of social security
at all levels have set up social insurance fund supervision organization
specially, responsible for the inspect, supervision of raising, management and
payment of the social insurance fund, and investigating and punishing the
unlawful practices.
(2) Endowment Insurance of China
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China implemented the single basic endowment insurance system to the
enterprise workers before 1990s. The basic pension is also called retire pay or
retire pension, and it is a kind of main endowment insurance treatment. After
the workers are old or lose labor ability, according to their contribution to
society and qualification and retire requirements for enjoying endowment
insurance, the country pay insurance treatment to retired employees by
monetary form monthly and in lump-sum, mainly used for ensuring worker's
basic living needs after retiring.
In 1984, the endowment insurance system reform was carried out all over
China. In 1986, China began to pursue the pension social pool of the workers
of state-owned enterprises. In 1991, the State Council issued ‘Decision on System
Reform for Enterprise's Workers Basic Endowment Insurance ‘, requiring ‘ to set up the
system combing basic endowment insurance, enterprise's supplementary
endowment insurance and worker's individual endowment insurance
progressively with the development of economy ‘, and stipulating that the
endowment insurance implements the social pool policy and the expenses are
bared by the government, enterprises and workers jointly. From then on, China
has set up the multi-level endowment insurance system progressively. In1993,
the Third Plenary Session of the 14th Party Central Committee of Communist
Party of China recommended the scheme that " the combination of social pool
and personal account for the endowment insurance for selection by local
authorities. In 1997, the State Council Decision on Establishing Integrated Enterprise
Workers' Basic Endowment Insurance System states clearly that the people's
governments at all levels should include social insurance development within
the national economy and social development plan in the local area, carry out
the principle that the basic endowment insurance can only ensure retired
personnel's basic life. In order to improve the life of the retired personnel with
economy and social development constantly, reflect the principle of distribution
according to labor and differences of regional development level and
enterprises’ economic benefits, every area and relevant departments should
develop supplementary the endowment insurance of enterprises under the
guidance of state policies, give play to the supplementary function of the
commercial insurance at the same time. This decision has advanced the
process of China’s establishment for the nationwide unified basic endowment
insurance system for urban enterprises' workers.
The Chinese endowment insurance is made up of three parts. The first part is
the basic endowment insurance, the second part is enterprises’ supplementary
endowment insurance, and the third part is the individual savings endowment
insurance. The basic endowment insurance is also called the national basic
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endowment insurance, and it is a kind of basic endowment insurance system
to guarantee basic living needs of workers after retiring and is implemented by
force by the government.
The basic endowment insurance system of China adopts the mode of combing
social pool and personal account. The basic endowment insurance covers the
workers of all kinds of enterprises in the cities and towns, and all enterprises
and workers in the cities and towns must perform duty of paying basic
endowment insurance premium. Article 72 of Labor Law of the People's Republic of
China stipulates that ‘the source of social insurance fund shall be identified
according to the type of the insurance, and social pool shall be implemented
progressively. Employing unit and laborer must participate in social insurance
and pay the social insurance premium in accordance with the law.’ At present,
the proportion of fee paid by enterprises is about 20% of the payrolls, the
proportion by individual is 8% 3of one's own salary. One part of endowment
insurance premium paid by enterprise is for setting up pool funds, another part
is put under the personal account; The basic endowment insurance premium
paid by individual is charged to the personal account. The pension in personal
account can be inherited. To the workers who are working before the new
system is implemented or who are retired after the implementation of the new
system, additional transitional pension shall be paid. Under the system, the
collection of basic endowment insurance premium still adopts the traditional
method, which means the basic endowment insurance premium is paid by the
country, enterprises and individuals jointly, and the basic endowment
insurance fund implements the principle of mutual help in the society. But the
idea of the structural granty is adopted in regard to the granty of basic pension,
with emphasis on encouraging factors to personal account pension and
difference of contributions.
The workers who participated in basic endowment insurance in China was
86,710,000 at the end of 1997. In 1998, 84,758,000 workers in enterprises
have participated in the basic pension insurance policy in the whole country,
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Regulation that ‘ the State Council is about establishing the decision of the unified enterprise worker's
basic old-age pension system’, enterprises pay the proportion of the basic endowment insurance
premium, can't generally exceed 20% of enterprise's payrolls (include putting under the part of the
personal account), the concrete proportion is confirmed by the people's government of province,
autonomous region and municipality directly under the Central Government. Because there is more
retired number of people, the endowment insurance burden is overweight in a few province, autonomous
region and municipality directly under the Central Government, really need to exceed payrolls 20% of
enterprises, should report to Ministry of Labour , the Ministry of Finance for approval . Individual paid the
proportion of the basic endowment insurance premium, can't be less than paying the fees by oneself in
1997 4% of the salary, improve 1 percentage point every two years from the 1998 , reach I pay the fees
8% of salary finally.
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accounting for 80.5% of total; Retired personnel of 27,273,000 have
participated in the social pool of the endowment insurance, accounting for
98.5% of retired number of people of enterprises. The national basic
endowment insurance fund gains 145,900 million Yuan, and the expenditure is
151,160 million Yuan; 3 billion yuan is paid additionally for the formerly unpaid
pensions altogether and all the unpaid pensions in Beijing , Shanghai , Fujian ,
Guangxi , Zhejiang , Ningxia , Jiangxi have been cleared. At the end of 2000,
104,480,000 workers and 31,700,000 retired personnels in the whole country
participated in the basic pension insurance policy. At the end of 2001,
108,020,000 workers and 33,810,000 retired personnels participated in the
basic endowment insurance in the whole country. Most retired personnel
receive basic pension in full amount on time, and an additional 1,400 million
yuan of pension over the years has been paid at the same time. The total
income of national basic endowment insurance fund for the whole year is
248,900 million yuan (including the collection income, central and local
governments’ financial subsidies) and the total expenditure is 232,100 million
yuan. Till the end of 2002, 111,280,000 workers and 36,080,000 retired people
have participated in the basic endowment insurance, and 90,900,000 workers
and 33,330,000 retired people are from enterprises. Till the end of 2003, the
number of workers who have participated in basic endowment insurance is
154,900,000.
In China, the guarantee level of the basic endowment insurance improves
progressively. The average monthly pension of the retired personnel of
enterprises was 129 yuan in 1990, 430 yuan in 1997, 556 yuan in 2001 and
579 yuan in 2003.
In order to reduce burden of the enterprise's involvement into social affairs and
to guarante by system that the basic pension is granted in full amount on time,
and socialized management and services of social security are launched
actively in the local areas. In 1996, the socialized granting rate of basic
pension to retired personnel of enterprises was 12%; in 2001, the rate was
98%; till the end of June of 2002, the rate was enhanced to 99.4%; till the end
of 2003, the rate was 99.5% nationwide, and the rate in 21 provincial cities
reaches 100%.
In addition, the original endowment insurance system is still adopted for the
workers and retired personnel of institutions, state organs.
In 1991, some rural areas in China began to carry out the pilot project of basic
endowment insurance system. With the basic principal of " individual pay as
main source, collective subsidy as supplementary, and with government
finance supporting”, the rural endowment insurance system adopts the mode
of fund accumulation of personal account. The rural social endowment
insurance is a system to ensure the basic life of old people of the whole
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country, and is an important social policy of the government. The rural social
basic endowment insurance system should be carried out with consideration of
reality of the countryside of China, with the aim of guarantee the basic life of
old people. Social endowment insurance of peasant is a basic endowment
insurance policy established in the countryside by the government, and its
standard is low and covering range is wide. With village as a unit, the rural
endowment insurance of the people (including workers of township enterprises,
private enterprises, self-employed individuals, and the local people who work
elsewhere) is organized. For the worker of township enterprises, teachers
working at a school run by the local people, cadre of villages and towns,
workers, their endowment insurance is organized with townships or
enterprises as the unit. A few villages and towns can practice the endowment
insurance of the workers of township enterprises first because of economy or
the region. The endowment insurance of alien labor service personnel shall be
done in its household register site (domicile ) in principle. For example, in 1998,
the whole country has 2123 counties (city) and 65% township (town) that have
launched the rural social endowment insurance work already, and there are
80,250,000 people in the countryside who have participated in social
endowment insurance. The rural social endowment insurance fund gains
3,140 million yuan in the whole year, and the expenditure is 540 million yuan,
and balance of that period is 2,600 million yuan, and accumulated balance is
16,620 million yuan at the end of that period.
The endowment insurance in rural areas is managed by government's civil
affairs departments. But till February of 2002, the whole country have 24
province, autonomous region and municipality directly under the Central
Government that have shifted rural executive function of social insurance to
social security department from Ministry of Civil Affairs already, among them,
13 municipalities (Tianjin , Hebei , Shanxi , Heilongjiang , Shandong ,
Shanghai , Zhejiang , Chongqing , Hunan , Anhui , Jiangsu , Yunnan) have set
up the rural social insurance department. 11 municipalities (The Inner Mongol ,
Jilin , Liaoning , Guangxi , Guangdong , Hainan , Sichuan , Fujian , Guizhou ,
Gansu , Tibet. Shaanxi , Qinghai , Xinjiang , Ningxia) have not set up the rural
social insurance department but have combined the administrative function of
rural social insurance with endowment insurance department. Only Henan,
Jiangxi and Hubei have reserved the rural insurance affairs within the civil
affairs department.
Many problems still existed in China's current basic endowment insurance
system, which are mainly as follows:
1. Differences of the endowment insurance in urban and rural area
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The urban area and rural area are different from each other with regarding
to the management mode, geographical position, economic development
levels and employment situation, which causes the government to implement
different social basic endowment insurance system, so that the enormous
difference between urban and rural areas is developed.
2. Difference of the Endowment Insurance among Different Industries
The endowment insurance of the urban workers is also different because of
the different industries, which was reflected by the fact that the urban workers'
basic endowment insurance system fails to include in the workers of the
government offices and public institutions all the time, and the workers of
government offices and public institutions do not receive the guarantee of the
basic endowment insurance, which makes urban worker have a difference on
the treatment of the endowment insurance because of difference of a job.
3. The personal account of the endowment insurance is in name only
The endowment insurance of China implements the mode that the social pool
combines with personal account, but the management of the pool fund and
personal account fund is in a mass for a long time, causing the personal
account of endowment insurance running empty, and the deficit reached 199
billion yuan, and people are afraid that there is a potential danger of abolition
of the new system.
4. The guarantee level of the endowment insurance is low
The purpose of the endowment insurance lies in offering the basic living
guarantee for the retired workers, but the guarantee level of the endowment
insurance of China is relatively low comparing with the minimum guarantee of
living and the civil living standard that is improving day by day. By the end of
2003, the average monthly pension of the basic endowment insurance is only
579 yuan, and the standard is low. In addition, the multi-level endowment
insurance mechanism has not been set up, and most enterprises haven’t set
up the supplementary endowment insurance (such as annual pension) for its
workers.
Unemployment Insurance of China
In the initial stage of founding of the People's Republic of China, it has
implemented transitional unemployment relief system. After this, under
planned economic system, because of the implementation of the employment
system that centralizes allocation of labor, unemployment relief system does
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not exist. After implementing the policies of reform and opening to the outside
world, in order to adapt to the conversion of the operating mechanism of
state-owned enterprises and the great reform of the labor system, since 1986,
Chinese Government has been set up unemployment insurance system
progressively, providing safeguard for the basic life of workers after their
unemployment.
In 1986, the State Council issued ‘ Temporary Provisions on worker's Unemployment
Insurance of State-Run Enterprises’, stipulating clearly to adopte worker's
unemployment insurance system to the workers of state-run enterprises. One
of the main purposes for China to set up the unemployment insurance system
lies in cooperating with the reforms of the SOE and labor and employment
system, in order to ensure the basic life of part of workers laid off by SOEs. In
April of 1993, on the basis of summarizing reform experience of worker's
unemployment insurance of state-owned enterprises, the State Council issued
‘Worker's Unemployment Insurance Regulation of State-Owned Enterprises ’, indicating that
China's unemployment insurance system have entered normal running period.
This regulation has expanded the insurance unemployment coverage of the
appropriately, and adjusted the unemployment insurance treatment standard
and increased the relief.
But the unemployment insurance system targeting on SOE can not fully meet
the needs of establishing socialist market economy system, and employees of
non state- owned economy and most workers of public institutions have not
been included in the unemployment insurance yet, causing this part of people
not protected from risk. In addition, the ability to bear of the unemployment
insurance fund is relatively weak, and the unemployment insurance premium
collected is limited because the coverage range is narrow, and the
unemployment insurance fund is controlled by the cities and counties and the
adjustment fund system has not been set up generally, and the mutual helping
function of unemployment insurance can not be fully played. The
unemployment insurance system of China needs to be reformed. The adoption
of ‘Unemployment Insurance Regulations ‘ has solved these problems
basically.
In January of 1999, the State Council issued ‘Unemployment Insurance
Regulations’, according to which every province, autonomous region and
municipality directly under the Central Government makes local regulations,
rules and regulatory files correspondingly. Heilongjiang Province has made
and issued " the unemployment insurance regulations of Heilongjiang Province
", the municipal governments of Beijing, Shanghai, Chongqing have issued the
regulations of the unemployment insurance, and Sichuan, Shandong, Anhui,
Yunnan, Xinjiang and the Inner Mongol autonomy district governments have
issued the notice to carry out " the unemployment insurance regulations ", and
Henan Government office has issued relevant notice, and labor insurance
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departments of Tianjin, Hebei, Liaoning, Jilin, Anhui, Jiangxi, Hubei, Hunan,
Guangxi, Guizhou, Shaanxi , Gansu, Qinghai have finished the drafting work of
local laws and regulations.
At present, the unemployment insurance coverage has already been
expanded to all enterprises, public institutions and workers in the cities and
towns from the state-owned enterprises, and the function of unemployment
insurance is strengthened day by day. In the area where the basic life
guarantee of laid-off workers merges with unemployment insurance, the
unemployment insurance has already become the main way of the laid-off
unemployed people's basic living guarantee. All enterprises, public institutions
and workers must pay the unemployment insurance premium. The proportion
of the enterprises pay is 2% of the payrolls, and the proportion of individual pay
is 1% of one's own salary. It needs three conditions to enjoy the unemployment
insurance treatment: one has been paying the unemployment insurance
premium for one year; one is unemployed not of one’s own will; one has
registered of unemployment and has the request of hunting for a job. The
unemployment insurance treatment is mainly the unemployment insurance
premium. The unemployment insurance premium is granted monthly, and its
standard is lower than the minimum wage standard, and higher than urbanite's
minimum living guarantee standard. The time limit for getting insurance
premium is determined by the years of paying the premium and the longest
time is 24 months. The unemployed people can get medical subsidy if they are
ill while in the period of getting unemployment insurance premium; if the
unemployed people die in the period of getting the unemployment insurance
premium, their relatives can get funeral subsidy and compensation fund for
relatives. In addition, they can also accept job training and enjoy the job
introduction replenish during the period of getting the unemployment insurance
premium. 4
In 1998, the number of people participating in the unemployment insurance in
the whole country was 79, 279,000, and the insurance fund gross income of
unemployment is 6,840 million yuan, of which 1,460 million yuan is given to the
re-employment service center of state-owned enterprises. The unemployment
insurance handling organization at all levels have offered unemployment
compensation to 1,581,000 unemployed people who have participated in
unemployment insurance, and have offered the disposable relief to needies of
1,486,000 enterprises. At the end of 1999, the number of people participating
4
However, contract system workers of peasants that the unit employs and uses do not enjoy the above
treatment . Article 21 of " insurance regulations of the unemployment " stipulates : "Unit peasant contract
system individual spent to employ work all over year in succession, our unit combined and already paid
the insurance premium of the unemployment, the labour contract expires and has not renewed or
cancelled the labour contract ahead of time, handled the organization according to the size of its working
time by social insurance, pay lump-sum subsistence allowance to it. The method and standard
subsidized are stipulated by the people's government of province, autonomous region and municipality
directly under the Central Government. "
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in the unemployment insurance in the whole country is 98,520,000, increasing
by 24.3% compared with that of last year. The insurance fund of the
unemployment gains 12,520 million yuan in the whole year. Till the end of 2000,
the number of people that have participated in unemployment insurance in the
whole country is 104,080,000, and 5,560,000 people were getting
unemployment insurance premium at the end of the year, unemployment
insurance fund gain 16 billion , have 3,300,000 unemployed people in all enjoy
different unemployment insurance treatment of time limit the whole year the
whole year. At the end of 2001, the number of people who have participated in
the unemployment insurance is 103,550,000, and the number of people of
getting unemployment insurance premium was 3,120,000 at the end of 2001.
Till the end of 2002, the number of people who have participated in the
unemployment insurance was 101,820,000, reducing by 1,730,000 people
than the last year, and the number of people of getting unemployment
insurance premium is 4,400,000. At the end of 2003, the number of people
who have participated in the unemployment insurance was 103,730,000, and
the national unemployment fund income is 25 billion yuan, and the number of
people of getting the unemployment insurance premium is 4,150,000, reducing
by 250,000 than the last year.
However, the relief of the laid-off workers of state-owned enterprises of China
has not been generally included in the unemployment insurance system.
Since 1998, China has taken the measure of " two guarantees " against the
problems caused by the laid-off of workers of SOE. The first guarantee is to
guarantee the basic life to laid-off workers of SOE, and generally set up laid-off
worker's re-employment service centers in state-owned enterprises, to grant
the basic living cost to the laid-off workers by the re-employment service center,
and pay the social insurance premium for them. And the necessary fund is
raised by government finance, enterprises and society (unemployment
insurance fund mainly). Meanwhile, the laid-off workers are organized to
participate in vocational guidance and reemployment training, and to lead and
help they to realize reemployment. The second guarantee is to guarantee the
basic life of the retired personnel and the granty of basic pension in full amount
on time.
In order to ensure the execution of “two guarantees”, the Chinese government
pursues the policy of “three security systems”, which means: the laid-off
workers of SOE can get basic living cost in the reemployment service center
for the longest time of 3 years; they can continue to get the unemployment
premium for the longest time of 2 years if they are still unemployed after the 3
years; they can apply for getting the minimum subsistence allowance of
urbanites if the period of getting unemployment premium expires. In order to
ensure the basic life of the laid-off workers of state-owned enterprises, every
local people's government shall, according to " three thirds " principle sharing
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the burden equally by financial budget arrangement, enterprises and social
collection (which are obtained mainly from unemployment premium), use part
of unemployment premium for the reemployment guidance center of
state-owned enterprises, and ensure the basic life of the laid-off workers and
pay the social insurance premium for them.
Moreover, the state finance has also provided the “two guarantees” with
financial support. For example, in 2001, state revenue has provided the “two
guarantees” in the old industrial bases and central and west regions with
special subsidy of more than 130 billion yuan.
The problems of current unemployment insurance system existing are mainly
the following:
1).Burden left over from history
The basic living guarantee of the laid-off workers of state-owned enterprises
does not belong to the guarantee range of the unemployment insurance, but
belongs to problems left over from history. How will the basic life of the laid-off
workers who have not participated in the unemployment insurance be
guaranteed has become a problem that Chinese social system can not avoid.
The unemployment insurance system should and can solve this problem.
2).The function of the unemployment insurance system is limited
The function of unemployment insurance of China given play in promoting the
employment and job training is very limited, and the phenomenon of its
function deficiency by is serious. How to give play to the unemployment
insurance to promote employment and strengthen job training is the problem
that the unemployment insurance system faces.
3).The collection of the unemployment insurance fund is difficult.
A lot of organizations that should participate in the unemployment insurance
have not participated in the unemployment insurance according to the
regulations, and the organization participating in the unemployment insurance
has a phenomenon in arrears with the unemployment insurance premium,
causing the collection of the unemployment insurance fund being difficult. The
social security organization should devote more efforts to imposing
unemployment insurance premium in accordance with unemployment
insurance regulations, and impel non-public enterprises to join unemployment
insurance especially. As to all the mechanisms that shall participate in the
unemployment insurance, measures shall be taken to enforce them to
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participate in the unemployment insurance, and the social public policy
measures of carrying out the unemployment insurance shall be strengthened.
4). The granting of unemployment insurance premium is difficult
Because of the application procedure to get unemployment pension and
unemployment pension amount granted, the phenomenon that the
unemployment insurance pension can't be granted in full amount in time exists.
Social security organization should grant to all eligible unemployed people
unemployment insurance premium in full amount in time in accordance with
insurance regulations of the unemployment insurance terms. To the areas with
relatively big financial pressure, the granting of unemployment premium shall
be done well to prevent being in arrears with the unemployment insurance
premium by using provincial level adjustment and local financial subsidy.
4. The medical insurance and birth insurance of China
Since the beginning of the fifties of the 20th century, China has set up the
socialized medicine and labor-protection medical care system, which are
called the urban worker's medical insurance. The socialized medicine and
labor-protection medical care system has long been playing a positive role in
ensuring the health of workers and maintaining the social stability. However,
with the constant promotion of the reform of the socialist market economy
system, socialized medicine and labor-protection medical care system can not
solve the worker's basic medical guarantee problem under the market
economy condition.
In 1988, China began to carry on the reform to medical treatment system at
public expense and labor protection medical treatment system of the
state-owned enterprise of the government departments and institutions. On the
initial stage of reforming, the individual sharing mechanism was introduced,
and medical care at public expense and labor protection medical care cost is
linked with individuals, and each party pays certain amount of money. Then the
social pool mechanism was introduced and social pool of hospitalization cost
of the retired personnel and worker’s serious disease was implemented in
some cities. In 1994, China carried out the pilot project of medical insurance
reform in the form of “combining statistics and accounting" in Zhenjiang and
Jiujiang. The State Council issued " Decision on setting up urban worker's
basic medical insurance system of the State Council " in December of 1998,
requiring to promote the reform of worker's medical insurance system in an
all-round way nationwide, and propose setting up national worker's basic
medical insurance system basically in 1999. The main content of this decision
is to set up the mechanism that employing unit and workers pay the fees
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together, ensure the worker's basic medical treatment conscientiously, set up
basic medical insurance pool fund and personal account, give play to the
function of mutual help and benefit and self protection of individuals, form the
internal mechanism in which hospital, patient and insurance encourage and
restrict each other, and control the over fast growth of the hospitalization cost.
The basic medical insurance system of China adopts the mode that the
social pool combines with personal account. Basic medical benefits fund
implements the prefecture-level pool in principle. The basic medical insurance
covers all employing units and workers in the cities and towns; all enterprises,
national administrative organs, public institutions and other units and workers
must perform the duty of paying basic medical insurance premium. At present,
the proportion paid by employing units is 6% of the payrolls, and the proportion
paid by individuals is 2% of one's own salary. A part of the basic medical
insurance premium paid by the employing units is used to set up social pool
fund, and another part is put under the personal account. The basic medical
insurance premium paid by individuals is charged to the personal account. The
pool fund and personal account bear different hospitalization cost and pay
responsibility respectively. Pool fund is mainly used to pay for the medical cost
of hospitalization and some chronic diseases and is set the payment standard
and maximum payment limit, and the personal account is used for paying the
general clinic expenses mainly.
The basic medical insurance system is still a brand-new system in China, and
needs to be perfected through reform practice constantly. It is needed to meet
the basic medical care security requirements of the people by providing the
high-quality medical treatment service with cheaper expenses through system
innovation and mechanism transform. The system includes the following
measures: to set up the fund collection mechanism that employing units and
individuals pay the fees together; to combine personal account with the social
pool, and combine balanced expenses bearing, risk dispersing, self discipline
strengthening, and fund accumulation for the future when one is old and sick
together; to strengthen the medical care administration and establish the
restriction mechanism of medical cost through taking the measures such as
making medicines catalogue and medical service range standard, fixed
management of medical organizations and drugstores. For example, in order
to ensure the workers who participates in the medical insurance to enjoy basic
medical care and control the over fast growth of the hospitalization cost
effectively, the government has strengthened the control over medical care,
and has made the medicines catalogue of basic medical insurance, standards
for diagnosis items and medical equipment, and carried on qualification
assertion to the medical organizations and drugstores that provide basic
medical care insurance services so as to let the workers who have participated
in the medical insurance make a choice.
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Besides basic medical insurance, the local governments have also set up the
mutual help system for large volume of hospitalization cost so as to pay the
medical cost that is over the limit of social pool fund. The country has set up
medical treatment subsidy system for the civil servants. The bad-off
enterprises can set up supplementary medical funds for its employees. The
country will also set up social medical rescue system progressively , and offer
the basic medical guarantee for the population below the poverty line.
1998, the number of workers who have participated in the combination reform
of social pool and personal account of medical insurance is 4,017,000, and the
number of retired personnel who have done the same is 1,076,000; The
number of people participating in the medical pool of worker's serious disease
is 11,080,000; 788,000 retired personnel have participated in social pool of the
hospitalization cost. In 1999, there were already 36 pool areas at local level
and 23 pool areas at county level that was implementing the basic medical
insurance reform scheme formally in the whole country, and the number of
workers and retired personnel who have participated in the basic medical
insurance system was 46,980,000 and 12,410,00 respectively; the number of
people who have participated in the social pool of medical cost for serious
diseases and medical cost for retired personnel is 14,710,000. In 2000, in the
349 pool areas above local level in the whole country, 320 pool areas have put
forward the reform plan for medical insurance system and 284 pool areas have
implemented the reform plan, with the covering range of 43,320,000 people. In
2001, in the 349 pool areas above local level in the whole country , 339 pool
areas have implemented the reform of basic medical insurance system, with
the registered number of people who have participated in the medical
insurance of 76,300,000, among which 54,710,000 people are on the job,
18,150,000 people are retired, increasing by 34,990, 000 people than last year.
In addition, the medical treatment at public expenses and other forms of
medical security system covers more than 100 million urban population, which
the Chinese government are enlisting into the basic medical security system.
At the end of 2002, the most organizations above local level of pool areas in
the whole country have implemented the basic medical insurance, and 94
million people have participated in basic medical insurance, increasing by
21,140,000 people compared with last year. At the end of 2003, 108,950,000
people have participated in basic medical insurance, increasing by 14,950,000
people compared with last year. The number of workers and retired personnel
who have participated in the medical insurance is the 79,770,000 and
29,180,000 respectively, increasing by 10,510,000 people and 4,440,000
people correspondingly.
The birth insurance is a social relief measure to provide the female employees
who are pregnant or giving birth with life security and material help, aiming at
helping them to resume labor ability and work again through providing them
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with birth allowance, medical services and maternity leave. The birth insurance
system of the enterprise workers of China was set up in 1951, and belonged to
the labor-protection medical care system. The birth insurance system of
government offices and public institutions was set up in 1955. Though the birth
insurance system of the enterprise and that of government offices and public
institutions are set up separately, their project and level of treatment is the
same. In 1988, the State Council issued " Regulations on Labor Protection of
Female Workers ", unifying the birth insurance treatment of the female
employees of the enterprises, government offices and public institutions, and
the normal maternity leave is prolonged from 56 days to 90 days, and the birth
cost is paid by the employing unit in which that employee works. The current
birth insurance system is suitable for the female employees of all government
offices, people's organizations, enterprises, public institutions within the
territory of China; and enterprises include the state-owned enterprises,
collective ownship enterprises, Chinese-foreign joint ventures, Chinese-foreign
co-operative enterprises, foreign enterprises, township enterprises, rural
enterprises and private enterprises and urban enterprises of joint households,
etc..
In 1994, the former Ministry of Labor issued " trial methods for birth insurance
of enterprises' workers", requiring to change the management mode of birth
insurance management by employing units into the management by the social
pool progressively, and to manage the birth insurance under the care of
regional social security organization. The State Council issued " development
outlines of Chinese women " (1995-2000) in 1995, proposing to " realize the
social pool of birth cost nationwide", and to "reform the birth insurance system
for female employees, alter the management of birth cost for female workers
by enterprises to the management by the social pool, and expand the practice
form state owned enterprises to all enterprises progressively." The birth
premium will be paid by enterprises instead of individuals. The payment for
birth insurance mainly includes the medical cost caused by birth and the
monthly birth allowance during the maternity leave.
14 provinces in China (autonomous regions, municipalities directly under the
Central Government) have issued the method of the birth insurance in form of
government orders or regulations, and 16 provincial capitals have issued the
rules for the birth insurance. 5
At the end of 1998, 1412 counties (city) have implemented the social pool of
birth insurance fund for enterprise workers, with the number of workers who
have participated in birth insurance being 27,767,000. The income and
5
Yunnan , Hubei , Fujian , Gansu , Heilongjiang , Inner Mongol , Liaoning , Jiangxi , Jiangsu ,
Sichuan , Zhejiang , Shaanxi , Hainan and Shanghai. Chengdu, Nanjing, Changchun , Jinan , Hefei ,
Yinchuan , Guangzhou , Hangzhou , Shijiazhuang , Taiyuan , Xi'ning , Jinan , Guangzhou , Kunming ,
Nanning and Urumchi
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expenditure of birth insurance fund of the whole year are 980 million yuan and
690 million yuan respectively. Till the end of 1999, the number of workers who
have participated in the social pool of birth cost in the whole country is 30
million, and the income and expenditure of birth insurance fund of the whole
year are 980 million yuan and 660 million yuan respectively. In 2000, the
number of workers who have participated in the social pool of birth cost in the
whole country is 30,020,000, and the income and expenditure of birth
insurance fund of the whole year are 1,120 million yuan and 840 million yuan
respectively. At the end of 2001, 34,550,000 workers have participated in the
birth insurance, and the number is 34,880,000 at the end of 2002. At the end of
2003, 29 provinces launched the birth insurance work in the whole country, the
number of people participating in the birth insurance is 36,480,000, and
350,000 workers enjoy the treatment of the birth insurance.
For the employing units that have not participated in the birth insurance, they
are still responsible for the birth cost and treatment of workers.
Shanxi, Fujian, Zhejiang, Jiangsu, Jiangxi, Hebei, Guangxi, Hubei, Jining,
Shangdong and Xinjiang are the provinces with wide coverage of social pool of
birth insurance at present. Shanxi has 118 counties and municipalities, among
which 117 have realized the social pool, accounting for 99% of the total. Fujian
has 77 counties and municipalities, among which 75 have realized the social
pool, accounting for 97% of the total. The percentages of coverage for
Zhejiang, Jiangsu, Jiangxi, Hebei, Guangxi, Hubei, Jining, Shangdong and
Xinjiang are 92%, 84%, 83%, 80%, 78%, 72%, 67%, 65% and 60%
respectively.
The current problems of existing medical insurance and birth insurance are the
following:
1). The security range is narrow
The medical insurance and birth insurance are mainly targeted for the urban
worker, and its coverage is relatively narrow. Especially in rural areas, people
who are not working in the enterprises cannot enjoy the basic medical
insurance treatment and birth insurance treatment. This will be the most
difficult problem that the reform of medical insurance and birth insurance of
China may encounter in the future.
2). The measures to counteract the non-participation in medical insurance are
deficient.
The state-owned enterprises that perform poorly are unable to pay the
worker's medical insurance premium, so the workers of some state-owned
enterprises can't enjoy the basic medical insurance treatment; the laid-off
worker of the state-owned enterprise faces the same problem too. Mixing
ownership enterprises and individual and private businesses don’t participate
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in the medical insurance actively, causing their employees not to join the
medical insurance. For the non-participation in medical insurance caused by
all these kinds of reasons, the workers of these enterprises are not to blame.
The government should take relief measure to the enterprises workers who
have not participated in the medical insurance, but there is no corresponding
means to deal with it at present.
3). The mechanisms to bear special medical cost are deficient.
The problems of medical treatment of special crowd and subsidy of large
volume of medical cost above the payment limit of basic medical insurance poll
funds are extremely conspicuous, and the existing basic medical insurance
cannot solve these problems. So measures shall be taken to establish the
bearing mechanism for special medical cost that can supplement the
deficiency of basic medical insurance.
Job Related Injury Insurance in China
The job related injury insurance is a kind of social security system that the
country offers medical treatment, life guarantee, economic compensation and
professional recovery to the worker who is injured due to his work or suffers
from occupational disease and his relatives.
At the end of the eighties of the 20th century, Chinese Government began
to carry on the reform to the job related injury insurance. In July of 1994, article
73 of " labor law of the People's Republic of China " stipulated that "The
laborer enjoys the social insurance treatment in accordance with the law in
case of the following: ……(3), One is injured due to his work or suffers from
occupational disease ". The labor law has guaranteed the right of the job
related injured people and their relatives to enjoy the job related injury
treatment in the form of law. In order to make the laborer enjoy the insurance
treatment of job related injury conscientiously, Ministry of Labor announced "
trial method for enterprises' workers’ job related injury insurance " in August of
1996, and began to set up the insurance system of industrial injury in some
areas, and has promoted the implementation of the insurance system of the
job related effectively. The " trial method for enterprises' workers’ job related
injury insurance " stipulates that the insurance premium of the job related injury
is paid by enterprises instead of individual worker. job related injury insurance
is it implement trade difference rate and enterprise float rate for paying the fees.
Different trade rates are confirmed according to the job related accident risks
of different trades and extent of occupational hazards; On the basis of trade
rate and in accordance with the real job related accident risk and the
expenditure on job related injury insurance fund of the last year, the actual rate
for every enterprise is determined.
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In April of 2003, the State Council issued ‘regulations on job related injury
insurance’ (adopted on January 1, 2004). In order to cooperate with the
carrying out and implementation of the regulations, according to the mandate
of the regulations, Ministry of Labor Security has made’ the job related injury
asserting methods’, ‘regulations on relatives range of the employee died of
work’ and ‘ disposable compensation methods for casualties of illegally
employed personnel’. The implementation of these regulations and rules has
offered the effective legal system guarantee to set up the insurance system of
industrial injury of our country, safeguard laborer’s legitimate rights and
interests conscientiously, and perfect the social security system. At present,
the implementation plan for the " regulations on industrial injury insurance
“ has been made in most provinces of the country, and 79 cities are made as
the important city to be connected, and trainings of different scales and levels
have been carried out in some provinces, and special personnel have been
organized to make implementation terms and relevant formulation work.
In China, the job related injury insurance implements the difference rate.
The country confirms the difference rate of the trade according to the industrial
injury risk degree of different trades, and confirm several rate grade in each
trade according to the situations such as use of the job related injury insurance
premium, job related injury accident rate, etc.. And the rate grade is worked out
by the labor security department together with finance department, hygiene
administrative department, safety production supervision administration
department of the State Council, and is issued for implementation after being
approved by the State Council. At the end of 2001, the national insurance
premium rate of the industrial injury on average is about 1%. The fund gains
3,500 million Yuan in the whole year of 2003.
The worker who participates in job related injury insurance, because of injury
of suffering from the occupational disease, will enjoy the legal job related injury
insurance treatment as follows mainly: (1) Hospitalization cost. The worker
who is injured or suffers from the occupational disease enjoys the medical
treatment of job related injury. (2)Replenish in hospital. The worker who is
treated in hospital because of job related injury shall be granted with 70%
allowance according to the food allowance standard for business trip. (3)
Auxiliary utensil expenses of the deformity. The necessary expenses for
auxiliary utensils such as artificial limb, glass eye, orthopaedicking device,
denture and wheelchair shall be paid from the insured fund of the job related
injury according to the standard that the country stipulates. (4) Life attendance
expenses. The job related injury worker whose injury has been evaluated by
the labor ability evaluation committee as needing life attendance shall be paid
life attendance cost monthly from the industrial injury funds. (5) Subsidy and
allowance for wounded and disabled worker. The worker who is disabled due
to his work shall be paid the lump-sum subsidy and monthly allowance
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according to the grade of disabled people. (6) Pension and relative's subsidy.
For the worker died because of his work, his direct relative shall be paid
compensation fee, funeral subsidy and lump-sum subsidy for industrial death
in accordance with the following regulations.
By the end of 1998, 37,813,000 workers in 1713 counties (city) in the whole
country have participated in the job related injury insurance; The insured fund
of the job related injury gains 2,120 million yuan in the whole year, and the
expenditure is 900 million yuan. At the end of 1999, 1713 counties (city) have
implemented the social pool of the insurance against injury at work in the
whole country, and the number of workers who have participated in job related
injury insurance is 39,603,000 people, and the insurance fund of the job
related injury gains 18.6 hundred million yuan in the whole year, and the
expenditure is 1,190 million yuan. In 2000, 43,500,000 people in the whole
country have participated in job related injury insurance, and job related injury
insurance fund gains 2.5 billion yuan and the expenditure is 1.4 billion yuan. At
the end of 2001, 43,450,000 people in the whole country have participated in
job related injury insurance. At the end of 2002, the number was 44,060,000.
At the end of 2003, the number was 45,730,000, and the number of people
who enjoy job related injury insurance treatment is 370,000.
For the workers whose employing units have not participated in the job related
injury insurance, their job related injury treatment is beard by their employing
units.
6. The Future Development of Social Security System of China
China is not an advanced economic development level, and managerial ability
and technological support means are weak, so it needs an arduous long-term
course to build a perfect social security system. It is a blessing that there is a
reform of the social security systems of more than 20 years in China, and there
is experience as well as lessons. The future development of China's social
security system, which is in fact solving of problem that the current social
security is insufficient, has the following several respect mainly:
1). Social security laws shall be perfected as soon as possible
China's social security system has been reformed for more than 20 years, and
has not made a law about social security. The current social security system is
mainly reformed and restrained in the form of administrative statute or the rule,
and the pressure and restriction strength is not strong enough, and is not
favorable for the effective execution of various policies of social security
system. As far back as 1994, article 73 of ‘labor law of the People's Republic of
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China ‘ has stipulated that’ The laborer enjoys the condition and standard of
the social insurance treatment for the laborers to enjoy shall be determined by
laws and regulations.’ But even to this day, there is no law that has
enforcement strength and is related to social security. On March 15 , 2004,
article 23 of " the Amendments to the Constitution of the PRC " stipulates that
‘The country establishes and improve system of social security suiting with
development level of economy. ‘This blows the clarion call for legislation of
China's social security system. Legislator should make’ social insurance
law’and laws and regulations that can regulate the improvement and
development of social security undertaking as soon as possible, so as to
regulate and promote the development of social security undertaking better.
2). Endowment insurance
(1) Develop integrated and multi-level social endowment insurance system
The endowment insurance of China should expand the coverage rate, and
state owned enterprises, township enterprises, foreign enterprises and private
enterprises should be included in the range of social security. The basic
endowment security system of organizations, public institutions and its
employees shall avoid the social conflict resulting from different security
methods to different crowds, and the rational flow of employees within the
enterprises and public institutions shall be promoted. Besides the basic
endowment insurance, set up supplementary endowment insurance and
individual savings endowment insurance according to the economic situation;
Develop supplementary endowment insurance, and enterprises can set up
annals and implement market-based operation and management, and enjoy
tax allowance, and implement total accumulating system, with the fee being
burdened by enterprises and individuals together. Organizations and public
institutions can set up additional insurance whose fund is offered by the
finance mainly, and individuals shall also pay certain premium too.
In this respect, it should be done to rectify and standardize the endowment
insurance work of the countryside actively, explore the security methods for
rural old people that suit China's actual conditions, and narrow the disparity in
urban and rural areas.
(2) Government’s favorable measures to promote endowment insurance
undertaking
Encourage enterprises to participate in worker's supplementary endowment
insurance (such as supplementary pension etc.), making which an important
component for the Chinese endowment insurance undertaking. Enterprises
supplementary endowment insurance is a system under the supervision of
national policy support and law supervision and autonomously chosen by
enterprises. The country should create the convenient conditions for
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implementation of enterprise's supplementary endowment insurance, such as
reducing or remitting taxes etc..
(3) The system to strengthen and regulate the allocation of endowment
insurance premium
The social pool fund is adjusted with province, autonomous region and
municipality directly under the Central Government as the unit. It shall be done
to reform and perfect worker's basic endowment insurance system of
government departments and institutions in good time. In the range of realizing
provincial pool, it shall be done to unify payment rate as soon as possible, and
unify pension treatment, and alleviate the pension treatment differential of
different trades and regions resulting from economic development grade and
income level difference by the modes such as supplementary insurances.
3). Unemployment insurance
Make the basic living guarantee of laid-off workers of state-owned enterprises
merge with the unemployment insurance system. The state-owned enterprise
no longer sets up new re-employment service center in principle, enterprise's
new layoffs no longer enter the re-employment service center in principle,
enterprises will remove the working relationship with the newly laid off workers.
For the workers whose employing units have participated in the unemployment
insurance and made full amount of payment, they can enjoy the treatment of
unemployment insurance. For the laid off workers who have entered the
re-employment center, their basic life and re-employment agreement will not
be changed. For the workers whose re-employment agreement has expired
and who haven’t found a job yet, their working relationship with the center shall
be removed in accordance with relative regulations and they can enjoy the
unemployment insurance or the urbanite's minimum living guarantee treatment
in accordance with the law.
It shall be done to expand the unemployment insurance coverage rate in
accordance with the law, promote public institutions, foreign-investment
enterprises, private enterprises to participate in the unemployment insurance
especially, and include units and workers conforming to regulations in the
coverage, and strengthen the collection of unemployment insurance premium ,
increase fund incomes , and strengthen the bearing ability of funds.
It shall be done to give full play to the function of promoting re-employment of
laid off workers of the unemployment insurance, utilize the benefit of
unemployment insurance premium in professional training and introduction,
and help the unemployed people to realize reemployment as soon as possible.
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4). Medical insurance and birth insurance
(1) Expanding the applicable scope of medical insurance and birth insurance
China should continue perfecting the urban worker's basic medical insurance
system, expand coverage of the basic medical insurance and birth insurance
steadily and make it expand to all people progressively, especially bring all
employing unit and worker in the cities and towns within the basic medical
insurance system. In this course, it shall be done to confirm rational payment
rate for basic medical insurance, and set up the basic medical insurance
premium rate in conformity with development level of economy and adjust the
mechanism.
It shall be done to set up nationwide unified urban worker's birth insurance
system progressively, expand the coverage rate steadily, realize the social
pool at local level of birth insurance, improve the socialized managing service
level, strengthen the management of birth insurance fund and realize the
balance between revenue and expenditure.
(2) Improving the security level of medical insurance
China should not merely continue implementing and perfecting national civil
servant's medical treatment subsidy, solve the hospitalization cost outside of
the national civil servant's basic medical insurance rationally; implement the
subsiding method for large volume of hospitalization cost, solve the medical
cost above the limit of basic medical insurance, but also develop enterprises
supplementary medical insurance , and for the part of cost that is less than 4%
of worker’s salary, it can be paid by the revenue; explore and set up social
medical rescue system; Encourage the worker to participate in the commercial
medical insurance voluntarily, and through setting up multi-level medical
security system, improve the guarantee level of the medical insurance
fundamentally.
(3) The corollary reform of medical insurance and hygiene system
In this respect, China should perfect the management organization of the
medical insurance and management system, perfect medical insurance
information and counting system; perfect the managing method of medicine,
diagnosis project and medical service facility for basic medical insurance,
guarantee worker's rational need of seeking medical advice and using
medicine; strengthen and perfect medical insurance premium expenditure
management, strengthen funds supervision, guarantee the balance between
revenue and expenditure of medical benefits funds, improve the ability of
medical benefits funds to resist risk.
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5), Supervision and management of social insurance funds
(1) Collection and enrichment of social insurance funds
Confirm the social burden standard for the collection of insurance fund
rationally in legislative form. The burdens of enterprises, government offices,
public institutions and workers should be rational. The total proportion which
the former bears can be controlled less than 25% of the on-the-job worker's
payrolls, among which 15% is for endowment insurance, 6% is for medical
treatment, 2% is for unemployment, 1% is for industrial injury and 1% is for
birth insurance; Total proportion that the latter bears shall be lower than 11%,
among which 8% is for endowment insurance, 2% is for medical treatment, 1%
is for unemployment. In possible cases, it can be done to implement the
alteration of social security cost to social security tax and strength the
supervision and collection of pension, and cash a part of state-run assets
through the standardized operation of capital market, issue stocks in local and
overseas places according to state-owned enterprise financing proportion to
draw some fund, or expand issuing scale of lottery tickets, etc. to substantiate
the social security fund.
(2) Establishing supervision system of social insurance funds
It shall be done to set up and amplify the social insurance fund supervision and
management system, implement the process supervision to the budget,
collection, expenditure, balancing of social insurance funds in accordance with
laws; Strengthen social security administrative supervision, social supervision,
perfect the normal mechanism of fund supervision and inspection, guarantee
the carrying out and implementation of every regulation, policy; Discuss and
make rules and regulations for social insurance fund management, supervision
and investment operation; Make ways of scene supervision, non scene
supervision, fund management risk evaluation and anti-cheating, and
supervise the collection mechanisms of their action, the payment activity of
social security handling mechanisms, management activities of financial
accounts, and investment running and running status of social service
mechanisms; Set up management policy for annals of enterprises and explore
supplementary medical insurance supervision mechanisms.
(3) Realizing the socialized granting of social insurance funds
The basic pension shall be granted by banks, post offices and other social
service mechanisms that are entrusted by social security handling mechanism
in an all-round way. The unemployed people shall get the unemployment
premium in the specified banks with the prove of certificates issued by
unemployment insurance handling mechanisms. The medical cost paid by the
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英国第五次人权网络研讨会 The fifth network forum on human rights in UK
basic medical insurance pool shall be settled by the handling mechanism in
the fixed medical mechanisms, drugstores directly, so do the medical cost for
industrial injury insurance and birth insurance.
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