Five Social Insurances and One Housing Fund
Five Social Insurances and One Housing Fund
Table of Content
Chapter 1: Introduction 3
Chapter 2: Successful of Shanghai in "Five social insurances one housing fund" 4
Chapter 3: Impacts on Employer 5
Chapter 4: Impacts on Employee 6
Chapter 5: Precautions of Human Resources Management 7
Reference 8
CHAPTER 1: INTRODUCTION
"Five social insurances and one housing fund" was established under Labor Act Chapter 9 Article 73. It is used to serve the purpose on maintaining social harmony by protecting employee's benefits.
"Five social insurances" included endowment insurance, medical insurance, unemployment insurance, employment injury insurance and maternity insurance . "One f und" is referred to h ousing p rovident f und. Endowment, u nemployment , and medical insurance is to be paid by employee and the employer together whereas maternity and employment injury insurance only paid by employer.
However, the five insurance is statutory under Labor Law while h ousing provident fund doesn't. Each province has its own rate dependents on the economic development needs and other social factors. In recent years, Shanghai has the highest insurance payment rate among China.
Calculation on monthly insurance and housing provident fund payment in Shanghai
Monthly payment of insurance and housing provident fund
= Individual income before tax per month* × payment percentage
*Equal to average salary per month in last financial year x 60% - 300%
Average salary per month in 2012 is (RMB) 4692, therefore
Minimum and maximum range (RMB) = 4629*0.6 - 4692*300
= 2815 - 14067
Therefore, individual is required to pay for insurance in accordance to the following table:
Shanghai Standard Payment of Social Insurance and Provident Fund 2013/14
Categories
Employer
Employee
E ndowment Insurance
22%
8%
Medical Insurance
12%
2%
Unemployment Insurance
1.7%
1%
Maternity Insurance
0.8%
Employment Injury Insurance
0.5%
Housing Provident Fund
7%
Table of Content
Chapter 1: Introduction 3
Chapter 2: Successful of Shanghai in "Five social insurances one housing fund" 4
Chapter 3: Impacts on Employer 5
Chapter 4: Impacts on Employee 6
Chapter 5: Precautions of Human Resources Management 7
Reference 8
CHAPTER 1: INTRODUCTION
"Five social insurances and one housing fund" was established under Labor Act Chapter 9 Article 73. It is used to serve the purpose on maintaining social harmony by protecting employee's benefits.
"Five social insurances" included endowment insurance, medical insurance, unemployment insurance, employment injury insurance and maternity insurance . "One f und" is referred to h ousing p rovident f und. Endowment, u nemployment , and medical insurance is to be paid by employee and the employer together whereas maternity and employment injury insurance only paid by employer.
However, the five insurance is statutory under Labor Law while h ousing provident fund doesn't. Each province has its own rate dependents on the economic development needs and other social factors. In recent years, Shanghai has the highest insurance payment rate among China.
Calculation on monthly insurance and housing provident fund payment in Shanghai
Monthly payment of insurance and housing provident fund
= Individual income before tax per month* × payment percentage
*Equal to average salary per month in last financial year x 60% - 300%
Average salary per month in 2012 is (RMB) 4692, therefore
Minimum and maximum range (RMB) = 4629*0.6 - 4692*300
= 2815 - 14067
Therefore, individual is required to pay for insurance in accordance to the following table:
Shanghai Standard Payment of Social Insurance and Provident Fund 2013/14
Categories
Employer
Employee
E ndowment Insurance
22%
8%
Medical Insurance
12%
2%
Unemployment Insurance
1.7%
1%
Maternity Insurance
0.8%
Employment Injury Insurance
0.5%
Housing Provident Fund
7%