Laws of the People's Republic of China

The State Council

Order of the State Coucil of the People's Republic of China

No.259

"Interim Regulations on Collection and Payment of Social Insurance Premiums" is adopted at the thirteenth Executive Meeting of the State Council on January 14, 1999, and is hereby promulgated. This law will enter into force as of its promulgation.

Premier of the State Council: Zhu Rongji

January 22,1999

Interim Regulations on Collection and Payment of Social Insurance Premiums

Chapter I General Provisions

Article 1

These Regulations are formulated to strengthen and regularize collection and payment of social insurance premiums, and to ensure the granting of social insurance compensation.

Article 2

These Regulations are applicable to collection and payment of basic pensions, basic medical insurance premiums and unemployment insurance premiums (hereinafter collectively referred to "social insurance premiums").

A unit or an individual paying premiums mentioned in these Regulations refers to the unit or individual who shall pay social insurance premiums according to the provisions of relevant laws, administrative regulations and of the State Council.

Article 3

The collection and payment scope of basic pensions: State-owned enterprises, collectively owned enterprises in cities and towns, enterprises with foreign investment, privately owned enterprises in cities and towns and other enterprises in cities and towns as well as their staff and workers, and institutions managed as enterprise as well as their staff and workers.

The collection and payment scope of basic medical insurance premiums: State-owned enterprises, collectively owned enterprises in cities and towns, enterprises with foreign investment, privately owned enterprises in cities and towns and other enterprises in cities and towns as well as their staff and workers, State organs and their functionaries, institutions and their staff and workers, private non-enterprise unit as well as their staffs and workers, social organizations and their full-time staff.

The collection and payment scope of unemployment insurance premiums: State-owned enterprises, collectively owned enterprises in cities and towns, enterprises with foreign investment, privately owned enterprise in cities and towns and other enterprises in cities and towns as well as their staff and workers, institutions as well as their staff and workers.

The people's governments of provinces, autonomous regions and municipalities directly under the Central Government, according to the actual local situations, may provide for the incorporation of individual industrial and commercial businesses in cities and towns into the collection and payment scope of basic pensions and basic medical insurance, and may provide for the incorporation of social organizations and their full-time staff, private non-enterprise units and their staffs and workers, as well as individual industrial and commercial businesses in cities and towns with employees and their employees into the collection and payment scope of unemployment insurance.

The base and rate of social insurance premiums shall be set fixed in accordance with relevant laws and administrative regulations as well as provisions of the State Council.

Article 4

Units and individuals paying premiums shall promptly pay social insurance premiums in full amount.

Social insurance premiums collected and paid shall be incorporated into social insurance funds and only used for their special purposes. No unit and individual may misappropriate these premiums.

Article 5

The administrative department of labor security under the State Council is responsible for the nationwide administration, supervision and checkup of the collection and payment of social insurance premiums. The administrative departments of labor security of the people's governments at or above the county level are responsible for the administration, supervision and checkup of the collection and payment of social insurance premiums within their respective administrative areas.

Article 6

Social insurance premiums shall be collected in a way that three kinds of social insurance premiums are collected centrally and uniformly. The people's governments of provinces, autonomous regions, and municipalities directly under the central Government shall prescribe the collecting agencies. They may collect by taxation departments, or by social insurance agencies established by the administrative department of labor security according to the provisions of the State Council (hereinafter referred to as social insurance agencies).

Chapter II Administration of Collection and Payment

Article 7

Units paying premiums must carry out social insurance registration with local social insurance agencies to participate in social insurance.

The registration items include: name and domicile of the unit, its business place, type of the unit, its legal representative or person in charge, its bank account number and other items prescribed by the administrative department for labor security of the State Council.

Article 8

Units paying premiums which have already participated in social insurance before the enforcement of these Regulation shall, within 6 months of the date of enforcement of these Regulation, carry out social insurance registration with the local social insurance agencies, and the said agencies shall issue them a social insurance registration certificate.

Units paying premiums which have not participated in social insurance before the enforcement of these Regulation, within 30 days of the date of enforcement of these Regulations, and units paying premiums which are established after the enforcement of these Regulations, within 30 days of the date of their establishment, shall apply for social insurance registration at the local social insurance agencies on the basis of their business licenses, registration certificates or other such relevant certificates. After verification, the social insurance agencies shall issue them a social insurance registration certificate.

Social insurance registration certificate may not be forged or altered.

The form of social insurance registration certificate shall be determined by the administrative department of labor security of the State Council.

Article 9

If the social insurance registration items of a unit paying premiums change or the unit paying premiums is terminated according to law, procedures for change or cancellation of the social insurance registration shall be carried out with the social insurance agency within 30 days of the date of the change or termination.

Article 10

Units paying premiums shall, on a monthly basis, report to the social insurance agency the amount of social insurance premiums payable and, after assessment by the social insurance agency, pay their social insurance premiums within the prescribed time period.

If a unit paying premiums fails to report the amount of social insurance premiums payable according to provisions, the social insurance agency `shall provisionally set the amount payable at 110 per cent of the premium amount paid in the preceding month. If it did not make a premium payment in the preceding month, the social insurance agency shall provisionally set the amount payable according to the unit's business situations, its number of staff and workers and other such relevant circumstances. After a unit paying premiums has retroactively carried out its reporting procedures and paid the social insurance premiums according to the sum assessed, the social insurance agency shall settle the accounts according to provisions.

Article 11

If the people's government of a province, an autonomous region or a municipality directly under the Central Government has determined that the tax authorities shall levy and collect social insurance premiums, the social insurance agency shall promptly provide the tax authorities with the relevant information of the social insurance registration, changes of registration, cancellation of registration and premium payment reports of the unit paying premiums.

Article 12

Units and individuals paying premiums shall pay their social insurance premiums in cash and in full.

The social insurance premiums payable by individuals paying premiums shall be withheld from their wages and paid for them by their work units.

Social insurance premiums may not be reduced or exempted.

Article 13

If a unit paying premium fails to pay its own social insurance premiums or to withhold and pay those of its staff and workers according to provisions, the administrative department of labor security or tax authority shall order it to pay within a prescribed time limit; if it has still not paid at the end of the time limit, in addition to paying the sum owned, it shall pay a late-payment fine of 0.2 per cent per day, counting from the date when the amount became overdue. Late-payment fines shall be consolidated into the social insurance funds.

Article 14

Social insurance premiums collected shall be deposited into a dedicated public finance account for social security funds opened by the public finance authorities with a State-owned commercial bank.

The social insurance funds established shall respectively be basic old age insurance funds, basic medical insurance funds, and unemployment insurance funds according to the pooling scope for the risk concerned. Separate and independent accounts shall be maintained for each type of social insurance funds.

No taxes of fees shall be calculated or levied on social insurance funds.

Article 15

If the people's government of a province, an autonomous region or a municipality directly under the Central Government has determined that the tax authorities shall levy and collect social premiums, the tax authorities shall promptly provide the social insurance agencies with information of the premium payments of units and individuals paying premiums. The social insurance agencies shall consolidate the relevant matters and submit them to the administrative departments of labor security.

Article 16

Social insurance agencies shall establish premium payment records. Of such records, those that pertain to basic old age insurance and basic medical insurance shall contain a record of the personal accounts, according to provisions. Social insurance agencies shall be responsible for maintaining premium payment records and ensuring their completeness and security. Social insurance agencies shall issue statements to individuals paying premiums concerning their basic old age insurance and basic medical insurance personal accounts at least once a year.

Units and individuals paying premiums are entitled to access their premium payment records according to provisions.

Chapter III Supervision and Examination

Article 17

Unit paying premiums shall announce to their staff and workers on a annual basis details of the units' social insurance premium payments for the whole year, and accept the supervision of their staff and workers.

Social insurance agencies shall periodically inform the public on details of the levy and collection of social insurance premiums, and accept the supervision of the society.

Article 18

According to the provisions of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government on collecting agencies of social insurance premiums, when an administrative department of labor security or a tax authority conducts an examination of the premium payments of a unit according to law, the unit being examined shall provide such information relevant to the payment of social insurance premiums as employment details, payrolls and financial statements, etc., and truthfully report the situation. The unit examined may not refuse the examination or make false or deceptive reports. The administrative department of labor security or the tax authority may make a written record of, audio tape, videotape, photograph or photocopy materials; however, they shall maintain the confidentiality of the unit paying premiums.

When conducting the duties indicated in the preceding paragraph, the personnel of the administrative department of labor security or the tax authority shall produce their proof of carrying out official business.

Article 19

When an administrative departments of labor security or a tax authority investigates cases of the illegal acts related to the collection and payment of social insurance premiums, the relevant departments and units shall provide support and cooperation.

Article 20

Subject to authorization by the administrative departments of labor security, social insurance agencies may conduct examination and investigation related to the collection and payment of social insurance premiums.

Article 21

Any organization or individual has the right to report illegal acts related to the collection and payment of social insurance premiums. The administrative department of labor security or the tax authority shall promptly investigate the report, handle it according to provisions, and maintain the confidentiality of the person making the report.

Article 22

Payments into and out of the social insurance fund shall be subject to separate administration and shall be supervised by the public finance departments according to law.

The auditing departments shall supervise the payments into and out of the social insurance fund according to law.

Chapter IV Penalty Provisions

Article 23

If a unit paying premiums fails to carry out social insurance registration, change its registration or cancel its registration according to provisions, or fails to report the amount of social insurance premiums payable according to provisions, the administrative department of labor security shall order it to correct situation within a prescribed time limit; in serious cases, a fine of not less than 1,000 yuan and not more than 5,000 yuan may be imposed on the person in charge who are directly responsible and other directly responsible persons; in particularly serious cases, a fine of not less than 5,000 yuan and not more than 10,000 yuan may be imposed on the person in charge who are directly responsible and other directly responsible persons.

Article 24

If a unit paying premiums violates relevant financial, accounting or statistics laws or administrative regulations or relevant State regulations, or forges, alters or intentionally destroy relevant account books or documents, or fails to keep accounts, thereby making it impossible to determine the base number for the collection and payment of social insurance premiums, it shall not only be subjected to administrative penalties, disciplinary punishment and/or criminal prosecution in accordance with the provisions of the relevant laws and administrative regulations, but it shall also make payment in accordance with Article 10 of these Regulations. If it delays payment, the administrative department of labor security or the tax authority shall decide to impose a late-payment fine in accordance with Article 13 of these Regulations and impose a fine of not less than 5,000 yuan and not more than 20,000 yuan on the person in charge who are directly responsible and other directly responsible persons.

Article 25

Units or individuals paying premiums dissatisfied with the penal decisions of the administrative departments of labor security or tax authorities may apply for reconsideration of the cases according to law. If the units or individuals are dissatisfied with the decisions made upon reconsideration, thy may file suits according to law.

Article 26

If a unit paying premiums refuses to pay its social insurance premiums or late-payment fines after the time limit for payment thereof has expired, the administrative department of labor security or the tax authority shall apply to the people's court to enforce payment according to law.

Article 27

If personnel of an administrative department of labor security, social insurance agency or tax authority abuse their powers, practise favoritism or graft, or neglect their duties, resulting in the loss of social insurance premiums, the administrative department of labor security or the tax authority shall pursue the recovery of the lost social insurance premiums; if a comical offence is constituted, criminal liability shall be pursued according to law; if no criminal offence is constituted, administrative punishment shall be imposed according to law.

Article 28

If any unit or individual misappropriates social insurance funds, the recovery of the misappropriated funds shall be pursued, and any illegal income shall be confiscated and consolidated with the social insurance funds; if a comical offence is constituted, criminal liability shall be pursued according to law; if no criminal offence is constituted, the persons in charge directly responsible and other directly responsible persons shall be subjected to administrative punishment according to law.

Chapter V Supplementary Provisions

Article 29

The people's' governments of provinces, autonomous regions and municipalities directly under the Central Government, according to the actual local conditions, may determine that these regulations shall apply to the collection and payment of work-related injury insurance and maternity insurance premiums within their respective administrative areas.

Article 30

The tax authorities and social insurance agencies may not make any appropriations from the social insurance funds to cover expenses incurred in their levy and collection of social insurance premiums. Funding for the necessary expenses shall be included in the budget and appropriated form public finance.

Article 31

These Regulations shall enter into force as of the date of promulgation.