Laws of the Shanghai Province

(Promulgated on March 5 2002 by Decree No.117 of the Shanghai Municipal People' s Government)

Article 1 (Purpose and Basis)

In order to normalize and strengthen the collection of social insurance premium and ensure the distribution of social insurance benefit, these Procedures are formulated according to the "Interim Regulations on Collection of Social Insurance Premium" , the "Provisions of Shanghai Municipality on Collection of Social Insurance Premium of Urban Staff and Workers" and the State' s relevant stipulations and with full consideration to the actual conditions in this Municipality.

Article 2 (Scope of Application)

These Procedures apply to the collection and payment of social insurance premiums such as basic old-age insurance premium, basic medical insurance premium, unemployment insurance premium and childbirth insurance premium (hereafter referred to as social insurance premiums) in this municipality' s administrative area.

Article 3 (Definition)

The unit payer(s) and individual payer(s) under these Procedures refer to the unit and individual person that shall pay social insurance premiums according to stipulations of relevant laws and regulations and provisions of the State Council and the municipal people' s government.

Article 4 (Administrative Department)

Shanghai Municipal Bureau of Labor and Social Security (hereinafter referred to as the MLSB) takes charge of the work of the administration and supervision of this municipality' s social insurance premium collection.

Labor supervising agencies under the MLSB take specific charge of supervision and inspection of the conditions of social insurance premium collection.

Social insurance agencies take specific charge of social insurance premium collection, and are to be entrusted by the MLSB to conduct investigation and check relating to social insurance premium collection.

Article 5 (Working Principle)

Social insurance premiums shall be collected in a centralized and uniform way.

Unit payer(s) and individual payer(s) shall pay social insurance premiums on schedule and in full.

Social insurance premiums shall not be reduced or exempted.

Article 6 (Unit Registration)

New unit payer(s) shall, within 30 days from the date of establishment, go through social insurance registration with social insurance agencies by business license or registration certificate and other relevant documents. Social insurance agencies shall issue social insurance registration certificates after examination and verification.

Social insurance registration matters include: unit name, residence, business location, unit type, legal representative or person in charge, bank account number and other matters stipulated by the labor security administrative department under the State Council.

In the event of alteration of social insurance registration matters, unit payer(s) shall, within 30 days from the date of alteration, go through the alteration formalities of social insurance registration with the original registering organization.

In the event of revocation, dissolution, bankruptcy or legal termination due to other matters, unit payer(s) shall, within 30 days from the date of termination, go through the cancellation formalities of social insurance registration with the original registering organization.

Article 7 (Declaration and Verification)

Unit payer(s) shall declare the sum of social insurance premiums that shall be paid to the social insurance agency.

In the event of alteration of the number of individual payers and other matters involving payment of premiums, the unit payer(s) shall, in the same month of alteration, declare the altered sum of social insurance premiums that shall be paid to the social insurance agency.

The social insurance agency shall verify the social insurance premium sum declared by unit payer(s).

Article 8 (Payment Time for Units)

Unit payer(s) shall, within from the first to 15th day of every month, pay social insurance premiums at the date set by the social insurance agency.

Article 9 (Payment Mode for Individual Persons)

The social insurance premiums that shall be paid by individual payers are first withdrawn from the individual persons' salaries or wages and then paid by the individual persons' affiliated unit payers.

Professionals and non-regular labor organization employees who make payment by themselves may, in person, apply to the social insurance agency for social insurance registration, and declare and pay social insurance premiums.

Article 10 (Conditions for Applying for Deferred Payment)

Under any of the following cases, unit payer(s) that can not make full payment of social insurance premiums monthly, may, with consent from employees' representative assembly or trade union, apply to the MLSB for deferred payment of social insurance premiums:

(1) In the bankruptcy procedure declared by the people' s court according to law;

(2) Suspending production or having suffered continuous losses for over one year or verging on bankruptcy;

(3) Other cases approved by the municipal people' s government.

Article 11 (Application for Deferred Payment)

Unit payer(s) that apply for deferred payment shall submit appropriate property rights certificates (including real estate property rights certificate, negotiable securities, equity rights certification, the same below).

Unit payer(s) with independent disposal right of property may apply for deferred payment. Those without independent property disposal right may jointly make the application with the third party that has the disposal right of their property.

Article 12 (Duration for Deferred Payment)

In applying for deferred payment of social insurance premiums, the applicant(s) shall put forward the duration for deferred payment and the plan for payment.

The longest duration for deferred payment shall not exceed one year.

Article 13 (Reporting Property for the record)

Unit payer(s) that meet the conditions for deferred payment shall, by the notice of the MLSB, have their corresponding property appraised by an appraising organization with legal qualification.

The appraised price shall be taken as reference for determining the sum of deferred payment.

After appraisal, unit payer(s) shall, by the notice of the MLSB, go through formalities of reporting property for the record with the Shanghai Municipal Housing and Land Resources Administration and other related administrative departments concerning certificates of property rights.

The property that the deferred payment applicant uses for reporting for the record shall not have other security for loan or has not been sealed up or frozen by judicial organs.

Article 14 (Approval of Deferred Payment)

After the deferred payment applicant completes the formalities of reporting property for the record, the MLSB shall give an official reply and issue the Letter of Decision on Approval of Deferred Payment of Social Insurance Premiums within 10 days.

The deferred payment duration approved by the MLSB shall be taken as the standard.

Article 15 (Check and Ratified Sum of Deferred Payment)

The sum of deferred social insurance premiums shall be checked and ratified according to the unit' s payable sum of the same month that deferred payment is applied for, multiplied by the number of deferred months. In the duration of deferred payment, the sum of deferred social insurance premiums shall not exceed the checked and ratified sum.

No overdue penalty is imposed on deferred social insurance premiums within the duration of deferred payment.

Article 16 (Prohibitive Provisions)

No shift of property reported for the record is allowed before the deferred payer pays off the deferred social insurance premiums.

Article 17 (Preferential Payment)

The property that has been reported for the record, if disposed of and transferred for other reasons, shall preferentially pay the deferred social insurance premiums.

Article 18 (Provisions on Merger, Acquisition and Reshuffle)

The time when the deferred payer decides dissolution for merger, acquisition or reshuffle and other reasons is deemed the expiration of approved duration of deferred payment. The deferred payer shall pay off the deferred social insurance premiums before going through the cancellation registration.

The merging party, acquiring party or the unit newly established after reshuffle, if meeting requirements, may make fresh application for deferred payment.

Article 19 (Cancellation of Report for the Record of Property)

The unit payer making deferred payment of social insurance premiums shall make repayment according to the approved payment plan. After the deferred payer pays off the deferred social insurance premiums, the MLSB shall, within 10 days, notify them in writing to go through the formalities of canceling the report for the record of property.

The deferred payer shall, by the notice of MLSB, go through the cancellation of for-the-record report with the original department that it reported the property for the record.

Article 20 (Enforcement of Property Reported for the record)

In the event the unit payer fails to pay off social insurance premiums in full according to the payment plan upon expiration of deferred duration, or the deferred payer shifts the reported-for-the-record property in the deferred payment duration, the MLSB has the right to apply to the people' s court for enforcement according to law.

Article 21 (Handling of Property Reported for the Record)

With regard to the application to the people' s court for enforcement of deferred social insurance premiums the deferred payer fails to pay off upon expiration, the people' s court may realize the reported-for-the-record property of the deferred payer according to law, including the corresponding proceeds in the social insurance fund. After the deferred payer and the MLSB reach unanimity through consultation, the people' s court may turn over the reported-for-the-record property to the care of the municipal social insurance agency. For the reported-for-the-record property that can not be realized temporarily or in case of abortive consultation, and on condition the MLSB agrees to accept such property, the people' s court may rule to put such property in the care of the municipal social insurance agency for realization in good time.

Article 22 (Bankruptcy Repayment)

The deferred social insurance premiums of unit payer(s) during bankruptcy shall be repaid in the bankruptcy repayment.

Article 23 (Inquiry)

Unit payer(s) and individual payer(s) have the right to inquire about the records of social insurance premiums paid by their own units or about individual accounts.

Article 24 (Supervision of Staff and Workers)

Unit payer(s) shall every year publish to their staff and workers the matters about social insurance premiums they have paid in the year so as to be supervised by their staff and workers.

Article 25 (Check)

Social insurance agencies shall check the number of staff and workers of unit payers, payment base and financial status to confirm if the unit payers make full payment of social insurance premiums according to law. The checked units shall provide the employment matters, payrolls, financial statements, and other materials in relation to social insurance premiums, and reflect things as they really are.

Article 26 (Notification)

In the event unit payers fail to go through social insurance registration as required, or fail to make full payment of social insurance premiums on schedule, social insurance agencies have the right to notify unit payers' trade unions or individual payers of the irregularities of such unit payers and the infringements arising therefrom upon legitimate rights and interests of individual payers. The MLSB has the right to notify the higher trade unions of such unit payers and the municipal general trade union of the irregularities of such unit payers and infringements arising therefrom upon legitimate rights and interests of individual payers; and may make them public to society according to the seriousness of case.

Article 27 (Overdue Fine)

With regard to the unit payer that fails to go through social insurance registration as stipulated, or fails to make full payment of social insurance premiums on schedule, the labor security administrative department shall order payment within a set period. Those that still fail to pay before the deadline shall pay overdue fine of 2 per thousand per day from the date of default. The overdue fine shall be incorporated into the social insurance fund.

Article 28 (Handling of Defaulter)

With regard to unit payer that fails to make full payment of social insurance premiums on schedule, the social insurance agency shall press for the payment. Those that still fail to pay in the same month shall be referred to the labor supervisory organization from the following month for handling according to law.

Article 29 (Reporting)

Any organizations and individual persons that find out irregularities in the collection of social insurance premiums, have the right to report to the labor supervisory organizations and social insurance agencies. The labor supervisory organizations or social insurance agencies shall timely investigate the report and deal with the case according to provisions.

Labor supervisory organizations and social insurance agencies shall keep confidentiality for informers.

Article 30 (Effective Date)

These Procedures shall become effective on April 10, 2002.