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REGULATIONS ON UNEMPLOYMENT INSURANCE

Category  INSURANCE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-01-22 Effective Date  1999-01-22  

Regulations on Unemployment Insurance



Chapter One  General Provisions
Chapter Two  Unemployment Insurance Funds
Chapter Three  Unemployment Insurance Benefits
Chapter Four  Administration and Supervision
Chapter Five  Penalty  Provisions
Chapter Six  Supplementary Provisions

(Adopted at the Eleventh Executive Meeting of the State Council on

December 26, 1999, promulgated by Decree No.258 of the State Council of People's Republic of China on January 22, 1999)
Chapter One  General Provisions

    Article 1  These Regulation are formulated to guarantee basic livings of the unemployed during the unemployment period and promote their reemployment.

    Article 2  Enterprises and institutions in cities and towns as well as their staff and workers shall pay unemployment insurance premium in accordance with these Regulations.

    The unemployed of enterprises and institutions in cities and towns may enjoy the benefits of unemployment insurance in accordance with these Regulation .

    Enterprises and institutions in cities and towns mentioned in this Article refer to State-owned enterprises, collectively owned enterprise in cities and towns, enterprise with foreign investment, privately owned enterprise in cities and towns as well as other enterprise in cities and towns

    Article 3  The administrative department of labor security under the State Council is in charge of unemployment insurance work throughout the country. The administrative departments of labor security under the people's governments at or above the county level are in charge of unemployment insurance work within their respective administrative areas. Social insurance agencies engaging in unemployment insurance business established by administrative departments of labor security in accordance with provisions of the State Council will undertake concretely the unemployment insurance work.

    Article 4 Unemployment insurance premium is collected and paid according to relevant provisions of the State.
Chapter Two  Unemployment Insurance Funds

    Article 5  Unemployment insurance funds include the following items:

    a. unemployment insurance premium paid by enterprises and institutions in cities and towns as well as their staff and workers;

    b. interest of unemployment insurance fund;

    c. financial subsidies;

    d. other funds incorporated into unemployment insurance funds according to law.

    Article 6  Enterprises and institutions in cities and towns shall pay unemployment insurance premium at a rate of 2% on the basis of their total amount of salaries. Staff and workers in enterprises and institutions in cities and towns shall pay unemployment insurance premium at a rate of 1% on the basis of their own salaries. Contract-system farmer workers engaged by enterprises and institutions in cities and towns do not pay unemployment insurance premium themselves.

    Article 7  Overall planning for unemployment insurance funds is to be conducted in municipalities directly under the Central Government and cities divided into districts; levels of overall planning in other areas are to be stipulated by people's governments of provinces and autonomous regions.

    Article 8  Provinces and autonomous regions may establish adjustment funds of unemployment insurance.

    Adjustment funds of unemployment insurance are to be raised at a ratio prescribed by people's governments of provinces or autonomous regions, taking unemployment insurance premium that should be collected according to law in areas where overall planning is conducted as the base.

    If unemployment funds in areas where overall planning is conducted are not enough for use, adjustment funds of unemployment insurance may be used as adjustment and local finance may be used as subsidies.

    Specific measures for raising and adjusting adjustment funds of unemployment insurance and for local financial subsidies are to be stipulated by people's governments of provinces and autonomous regions.

    Article 9  People's governments of provinces, autonomous regions and municipalities directly under the Central Government, according to the number of the unemployed and the amount of unemployment insurance funds for their respective administrative areas, and after the approval by the State Council, may adjust properly rate of unemployment insurance premium.

    Article 10  Unemployment insurance funs shall be used for the following expenditure:

    a. unemployment insurance compensation;

    b. medical subvention during the period of receiving unemployment insurance compensation;

    c. funeral allowance for the unemployed died during the period of receiving unemployment insurance compensation and pension for spouse and direct relatives supported by the dead person;

    d. subsidy for accepting job training and job seeking during the period of receiving unemployment insurance compensation. Measures and Schemes for such subsidy are to be stipulated by people's governments of provinces, autonomous regions and municipalities directly under the Central Government;

    e. other expenses relating to unemployment insurance stipulated or approved by the State Council.

    Article 11  Unemployment insurance funds must be deposited into special accounts of social security funds opened by financial departments in State-owned commercial banks. They shall be managed in a way of separate channeled receipts and expenditures and supervised by financial departments according to law.

    Unemployment insurance funds deposited into banks and used to buy national debts according to State provisions are accounted interests respectively according to the deposit rates of resident deposits during the same period and interests of national debt. The interests are merged into unemployment insurance funds.

    Unemployment insurance funds shall be used for their specific purposes, and may not be misused for other purposes or used to balance financial expenses and receipts.

    Article 12  Budget and settlement of unemployment insurance funds shall be made by social insurance agencies in areas where overall planning is conducted, and submitted to people's governments at the same level for examination and approval upon check by administrative departments of labor security and verification by financial departments at the same level.

    Article 13  Financial systems and accounting systems for unemployment insurance funds shall be carried out according to relevant provisions of the State.
Chapter Three  Unemployment Insurance Benefits

    Article 14  Qualifications for the unemployed who may receive unemployment insurance compensation are as follows:

    a. have participated unemployment insurance, the unit to which they belong and they themselves have performed the obligation of paying premium not less than one year;

    b. have suspended employment undue to their own willingness;

    c. have undergone unemployment registration and have requested new jobs.

    The unemployed are entitled to receive other unemployment insurance benefits during the period of receiving unemployment insurance compensation.

    Article 15  Where any one of the following circumstances occur during the period of receiving unemployment insurance compensation, the unemployed shall stop receiving unemployment insurance compensation and shall be deprived of other unemployment insurance benefits:

    a. reemployment;

    b. performance of military service;

    c. emigration to foreign countries;

    d. enjoyment of basic pension benefits;

    e. imprisonment and reeducation through labor;

    f. refusal of reemployment recommend by departments and agencies designated by local people's governments without any rational reasons;

    g. other circumstances stipulated by laws and administrative regulations.

    Article 16  Enterprises and institutions in cities and towns shall promptly issue certificates of termination or dissolution of employment relation for the unemployed, inform persons concerned of the rights to enjoy unemployment insurance benefits and submit name lists of the unemployed to social insurance agencies for the record within 7 days of the termination and dissolution of the employment relation.

    After unemployment, staff and workers of enterprises and institutions in cities and towns shall undergo promptly registration with designated social insurance agencies on the basis of the certificates of termination and dissolution of employment relation issued by their work units. Unemployment insurance compensation is to be accounted from the day registration.

    Unemployment insurance compensation is paid monthly by social insurance agencies. Social insurance agencies shall issue documents to the unemployed on the basis of which they receive unemployment insurance compensation from designated bank.

    Article 17  If the accumulative time period in which the units to which the unemployed belong before their unemployment and the unemployed themselves pay premiums is not less than one year but not more than five years, the maximum period of receiving unemployment insurance compensation is 12 months; if the accumulative time period of paying premiums is not less than five years but not more than ten years, the maximum period of receiving unemployment insurance compensation is 18 months; if the time period of paying premiums is not less than ten years, the maximum period of receiving unemployment insurance compensation is 24 months; if anyone is re-unemployed after reemployment, the time period of paying premiums shall be recalculated. The time period of receiving unemployment insurance compensation may be calculated together with the previous period in which he should have received but have not received unemployment insurance compensation, but the maximum time period may not be longer than 24 months.

    Article 18  The standard for unemployment insurance compensation are to be set by people's governments of provinces, autonomous regions and municipalities directly under the Central Government at a level which is lower than the minimal local salary standard but higher than the minimal living security standard for urban residents.

    Article 19  The unemployed who receive medical treatment during the period of receiving unemployment insurance compensation, may apply for medical subvention from social insurance agencies. The standard for medical subvention is to be set by  people's government of province, autonomous region or municipality directly under the Central Government.

    Article 20  If the unemployed die during the period of receiving unemployment insurance compensation, their family dependents are to be paid one-off funeral allowance and pension with reference to local regulations on employed staff and workers.

    Article 21  If a contract-system farmer worker engaged by a unit has been working continuously for not less than one year, and the unit has paid unemployment insurance premium, where no contract is renewed when the employment contract is expired or the contract is terminated in advance, the social insurance agency shall pay one-off living subsidy to the farmer worker according to the length of his working period. Measures and standards for such subsidy are to be stipulated by people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

    Article 22  If enterprises and institutions in cities and towns move as a whole from one area where overall planning is conducted to another one, or if the unemployed moves among area where overall planning is conducted, the social insurance credentials are to be moved together.

    Article 23  If the unemployed are qualified for minimal living ensuring standard for urban residents, they are entitled to enjoy the benefit of the minimal living ensuring standard for urban residents.
Chapter Four  Administration and Supervision

    Article 24  In the administration of social insurance, the administrative department of labor security shall perform the following duties:

    a. implement and enforce laws and regulations on unemployment insurance;

    b. guide the work of social insurance agencies;

    c. conduct supervision and inspection on collection of unemployment insurance premium and payment of unemployment insurance compensation.

    Article 25  When undertaking concretely the work of social insurance, social insurance agencies shall perform the following duties:

    a. being responsible for registration, investigation and statistics of the unemployed;

    b. being responsible for administration of unemployment insurance funds according to provisions;

    c. checking and determining unemployment insurance benefits, and issuing documents for the unemployed by which they receive unemployment insurance compensation and or other subsidies from designated banks;

    d. appropriating subsidiary fees for vocational training and job seeking for the unemployed;

    e. offering free consultation service to the unemployed;

    f. other duties stipulated by the State to perform.

    Article 26  Financial departments and auditing departments shall supervise the collection, payment and administration of unemployment insurance funds according to law.

    Article 27  Outlays for social insurance agencies shall be listed into budget and appropriated from government finance.
Chapter Five  Penalty  Provisions

    Article 28  Where anyone disqualified for enjoying unemployment insurance benefits defrauds unemployment insurance compensation and other unemployment insurance benefits, the social insurance agency shall order them to be returned, where the circumstances are serious, a fine of not less than one time but not more than three times the amount defrauded shall be imposed by administrative department of labor security.

    Article 29  Where a functionary of a social insurance agency, in violation of provisions, issues documents for receiving unemployment insurance compensation or enjoying other unemployment insurance benefits for the unemployed, thus causing losses of unemployment insurance funds, the administrative department of labor security shall order them to be recovered; where the circumstances are serious, administrative sanctions shall be imposed according to law.

    Article 30  Where a functionary of the administrative department of labor security and the social insurance agency abuses his power, neglects  his duties and practice favoritism, thus resulting in the losses of unemployment insurance funds, the administrative department of labor security shall recover the lost unemployment insurance funds; if the violations constitute crimes, criminal liability shall be investigated according to law; if no crime is constituted, administrative sanctions  shall be imposed according to law.

    Article 31  If any unit or individual misappropriates unemployment insurance funds, the misappropriated fund shall be recovered; if there is illegal income, such illegal income shall be confiscated and merged into unemployment insurance funds; if the violations constitute crimes, criminal liability shall be investigated according to law; if no crime is constituted, administrative sanctions shall be imposed according to law upon the persons in charge who bear direct responsibility and other persons directly responsible.
Chapter Six  Supplementary Provisions

    Article 32  The people's governments of provinces, autonomous regions and municipalities directly under the Central Government, according to the actual local situations, may determine whether these Regulations apply to social organizations and their full-time staff, private non-enterprise units and their staff and workers, or individual industrial and commercial businesses in cities and towns with employees that are located within their respective administrative areas.

    Article 33  These Regulations take effect as of the date of promulgation. The Provisions on Unemployment Insurance of Staff and Workers in State-owned Enterprises, promulgated by the State Council on April 12th 1993, is annulled simultaneously.



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