PRC Social Insurance Law (President's Order 35) - 中华人民共和国社会保险法 主席令 第35号
Released on October 28, 2010 and effective on July 1, 2011
On October 28, 2010, the PRC Social Insurance Law was adopted at the 17th session of the 11th Standing Committee of the National People's Congress and will take effect as of July 1, 2011. This law introduces a nationally unified social insurances system which covers the basic endowment insurance, basic medical insurance, work-related injury insurance, unemployment insurance, and birth insurance.
Some key points under this new law
· New means to collect social insurance premiums: This new law provides some new means to be used to collect the social insurance premiums if an employer fails to fully pay the premiums, including checking the employer’s bank accounts, ordering banks to withhold the outstanding amounts, requesting the employer to provide collateral, and applying courts to detain, seize and auction off the assets of the employer.
· Foreigners to participate in the social insurance: Foreigners working in China will also apply this law. The employer may pay the mandatory social insurance for the foreign employees, and they will get the same social insurance benefits as Chinese employees.
· Liability for non-compliance: Where an employer fails to make fully social insurance contributions on time, it will be subject to a penalty for late payment at the rate of 0.05% per day. If this employer fails to make the overdue contributions within a specified period requested by the relevant authority, it will be subject to a fine up to 3 times of the overdue amount.