Each business unit should first go through the account opening procedures when applying for insurance coverage for its employees.
Application for the establishment of a three-in-one insurance unit for labor insurance, labor pension, and national health insurance
The insured unit shall report the labor insurance matters such as the enrollment of insurance for new employees, the withdrawal of insurance for departed employees, or the adjustment of the insured salary according to the certified insurance card number.
Labor insurance coverage (*Only available in Chinese)
In addition to providing unemployment benefits to workers in the event of involuntary unemployment, the employment insurance also provides re-employment incentives to those who actively seek early employment, and provides unemployed workers who are undergoing vocational training with a vocational training living allowance and national health insurance premium subsidy to help them stabilize their basic livelihood during unemployment and assist them in re-employment as soon as possible. For those who are employed and participate in labor insurance, they will obtain the status of employment insurance insured from the effective date when the insured unit declares their participation in labor insurance. When the insured unit reports the withdrawal of the insured’s labor insurance, the employment insurance will automatically cease to be effective.
The central government appoints the Bureau of Labor Insurance of the Ministry of Labor to handle the receipt/payment and storage of labor pensions, the imposition of late payments, and the imposition of fines. The new Labor Pension System is based on the “individual pension account” system, supplemented by the “annuity insurance” system. The individual pension account stipulates that the employer shall contribute a monthly labor pension of not less than 6% of the monthly wages of the workers who are subject to the Labor Standards Act (including local nationals, foreign spouses, spouses of Mainland China, Hong Kong, Macau, and foreign nationals with permanent residence) to be deposited in the individual labor pension account established by the Bureau of Labor Insurance. The pension accumulation will not be affected by the worker’s change of job or the closure of the factory or business. The ownership of the individual labor pension account belongs to the employee. If the business unit employs more than 200 workers, with the consent of the labor union, or if the business unit does not have a labor union, with the consent of the labor-management meeting and after the approval of the Ministry of Labor, the business unit can take out an annuity insurance policy that conforms to the provisions of the Insurance Act.
Labor Pension Contribution (*Only available in Chinese)
For all business units subject to the Labor Standards Act, the employer shall contribute 0.025 percent of the total insured wages of the employed workers to the Arrear Wage Payment Fund every month. When an employer goes out of business, liquidates or declares bankruptcy, the wages, pensions, severance payments under the Labor Standards Act or severance payments under the Labor Pension Act may be advanced by the fund, and the employer shall repay the amount advanced to the fund within the prescribed period.