China Law Update

1. Social Insurance Law of the People’s Republic of China
(promulgated by the Standing Comm. Nat’l People’s Cong., Oct.
28,2010, effective July 1, 2011.)
This is the first time for the National People’s Congress to
legislate a social insurance system. The basic social insurance
system, established in the Social Insurance Law of the People’s
Republic of China (hereinafter referred to as Social Insurance Law),
includes basic endowment insurance, basic medical insurance,
employment injury insurance, unemployment insurance and
maternity insurance attempting to guarantee the rights of citizens to
obtain material assistance from the state and society in case of old
age, illness, work-related injuries, unemployment and childbirth.
Legalization of the field of social insurance in China settles the
complex relations between different types of social insurances and
protects the rights and interests of citizens participating in social
insurance programs.,
Highlights of the social insurance law are as follows:
Firstly, the Social Insurance Law forms the basic framework of
the social insurance system in China. Compared with the unilateral
regulations of social insurance in the past, the Social Insurance Law
makes comprehensive and uniform provisions, which stipulate the
benefits of specific social insurance that individuals can enjoy, the
administration and supervision of social insurance funds, the social
insurance services that should be provided by social insurance
agencies and the various channels which social insurance funds
should be raised through, which include the insurance premiums paid
by individuals and the subsidies from the government.
Secondly, it has established the guidelines of “broad coverage of
insurants, basic insurance level, multiple types of insurance,” which
overcomes the institutional impediments that hindered the flow of
personnel and employment of rural laborers. In the past, the
endowment insurance system varied among different overall
planning areas and the transference of endowment insurance
relationship of those migrant workers was really difficult, which
discouraged them from participating in the basic endowment
insurance. However, this problem has been effectively solved by
the Social Insurance Law. According to article 19, when an
individual is employed in a different overall planning area, his or her

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