Laws of the People's Republic of China

I. All staff and workers in the service of the organs, enterprises and institutions (hereinafter referred to as units) in the cities and towns within the Municipality, self-employed workers and their helpers, as well as other personnel as defined by the Municipal Medical Insurance Bureau together with the other departments concerned (hereinafter referred to as staff and workers in service), shall pay medical insurance premiums, and shall be entitled to the appropriate medical insurance treatment as specifically provided.

II. The staff and workers in service shall pay as the medical insurance premium 1% of their average monthly income of the previous year. When the average monthly income of previous year of any staff member or worker exceeded 300% of the average monthly salary or wage of whole Municipality, the excess over the 300% will not be calculated in the base for the payment of the insurance premium. If the average monthly income of the previous year of any staff member or worker came under 60% of the average monthly salary or wage of the whole Municipality, his or her average monthly income is calculated as 60% of the average monthly salary or wage of the whole Municipality and shall pay accordingly.

The base for the payment by the staff and workers in the service of private enterprises, the self-employed workers and their helpers, shall be defined and made public by the Municipal Labor and Social Security Bureau, in the light of the wage standard for tax calculation for the private enterprises and self-employed workers as specified by the tax departments in the previous year, and in accordance with the average monthly income of the staff and workers of the whole Municipality in the previous year.

III. The medical insurance premiums paid by the staff and workers in service, shall be withheld by the units in which they work, and shall be levied unitarily by the social insurance handling organs when they levy other social insurance premiums.

The medical insurance premiums paid by the staff and workers in service who are entitled to free medical service, shall enter an independent accounting, and the specific scheme for using this fund shall be drafted by the Municipal Medical Insurance Bureau together with other departments concerned, and shall be executed upon approval by the Municipal People's Government.

IV. The Municipal Medical Insurance Bureau shall be responsible for the interpretation of the specific application of these Provisions.

V. These Provisions shall become effective on October 1,1998.