Oct. 29 – China’s top legislature voted yesterday to allow workers in China the right to transfer their basic pension insurance accounts from one residence to another.
The Social Insurance Law, which will take effect on July 1, 2011, aims to prevent the improper use of social security funds and also promises a new endowment insurance system for rural residents.
The new law specifies a common right for all citizens to access and enjoy five forms of insurance: pension insurance, medical insurance, employment injury insurance, unemployment insurance and maternity insurance.
It also allows employees to transfer their basic endowment insurance accounts from one residence to another and promises a new endowment insurance system for rural residents.
The old regulations restricted movement of the country’s increasing migrant population by creating obstacles to basic social insurances for people living and working outside their birthplace.
The new law will establish a medical payment system that will allow medical insurance in one place to be repaid in another. Citizens will also be allowed to pay pension premiums in one place and withdraw money from another.
The social insurance law was first proposed and planned about 16 years ago by the top legislature. The law’s current form has been debated and deliberated on for three years.
China plans to invest RMB5.74 trillion by 2020 in its social welfare system, according to the China Development Research Foundation, a government think-tank.
Employment Overheads in China’s Social Security System
Including a table of minimum wages and social insurance information in 20 Chinese cities