China’s 2012 Statistics for Human Resource and Social Security Development

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Jun. 4 – China’s Ministry of Human Resources and Social Security (MHRSS) released the “2012 Statistic Bulletin on Human Resource and Social Security Development” on May 28, outlining the country’s employment conditions, social insurance status, and income distribution in 2012. Detailed information can be found below.

Employment Conditions
China’s working population reached 767.04 million by the end of 2012, with 371.02 million employed in cities and towns. Sector-wise, the country’s primary industry accounts for 33.6 percent of total employment, its secondary industry maintains a 30.3 percent share, and its tertiary industry takes up the remaining 36.1 percent.

At the same time, the total number of migrant workers hit 262.61 million, with an increase of 9.83 million from 2011. Among the migrant workers, about 163.36 million seek work outside of their hometown.

In 2012, the number of foreigners holding work permit in China reached 246,400, while the number of Hong Kong and Macau residents with work permits stood at 91,500.

Social Security Insurance
According to the Bulletin, the country’s social security system has made great progress in 2012, with the combined revenues from all five social insurance items (excluding social pension insurance for urban and rural residents) recording year-on-year growth of 20.2 percent to RMB2.89 trillion, while social security expenditures increased by 22.9 percent to RMB2.22 trillion.

At the end of 2012, the total number of people participating in the country’s basic pension fund scheme reached 304.27 million, a 20.36 million increase from a year earlier. The revenue of basic pension funds in cities and towns amounted to RMB2 trillion, up 18.4 percent year-on-year. Around RMB1.65 trillion came from basic pension payments, while the rest came from government subsidies. Total expenditures through basic pension funds stood at RMB1.56 trillion last year, with a year-on-year increase of 21.9 percent.

Medical Insurance
The total number of people participating in the country’s basic medical insurance reached 536.41 million in 2012, a 62.98 million increase from a year earlier. At the same time, total medical insurance revenue reached RMB693.9 billion, representing an increase of 25.3 percent from the previous year, while expenditures increased by 25.1 percent to RMB554.4 billion.

Unemployment Insurance
The total number of people participating in the country’s unemployment insurance reached 152.25 million in 2012, up 9 million year-on-year. Total revenues and expenditures of the unemployment insurance fund in 2012 stood at RMB113.9 billion (year-on-year growth of 23.4 percent) and RMB45.1 billion (year-on-year growth of 4.1 percent), respectively.

Work-Related Injury Insurance
As the end of 2012, the number of people participating in the country’s work-related injury insurance reached 190.1 million, a 13.14 million increase over the previous year. Total revenues and expenditures of the work-related injury insurance amounted to RMB52.7 billion (up 12.9 percent) and RMB40.6 billion (up 41.9 percent), respectively.

Maternity Insurance
The number of people participating in the country’s maternity insurance reached 154.29 million in 2012, a 15.37 million increase over the previous year. Revenue from maternity insurance grew 38.4 percent to RMB30.4 billion, with expenditures experiencing a 57.6 percent increase to RMB21.9 billion.

Income Distribution
According to the Bulletin, the average annual salary of employees of non-private entities in cities and towns stood at RMB46,769 in 2012, up 11.9 percent year-on-year, while the average annual salary of employees of private entities increased by 17.1 percent from RMB24,556 to RMB28,752. The average monthly wage of migrant workers seeking work outside their hometown reached RMB2,290, an 11.8 percent increase.

Moreover, 25 provinces and cities adjusted minimum wages with an average increase of 20.2 percent in 2012. Shenzhen had the highest monthly minimum wage at RMB1,500, while Beijing had the highest hourly wage at RMB14.

Legislative System
On April 28, 2012, the State Council released the “Special Provisions on Labor Protection for Female Workers,” and at the end of 2012, China’s National People’s Congress adopted the “Decision on Revising the Labor Contract Law of the People’s Republic of China,” which is scheduled to take effect on July 1, 2013. In addition, the MHRSS has cooperated actively with other departments to promote the drafting of “Measures on Maternity Insurance” and “Administrative Regulations on Special Working Hours.”

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

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