Guangdong Province, Unemployment Insurance Regulations

Promulgated: August 23 2002
Effective: October 1 2002

Main contents: Article 3 of the Regulations states that according to State provisions no tax or fee shall be levied on the unemployment insurance fund or unemployment insurance benefits.
Part Two prescribes the administration of the unemployment insurance fund. The fund shall comprise: the unemployment insurance premiums; interest on the fund; late fees; and government subsidies (Article 6). The employer contributes an amount equal to 2% of the employee's salary; the employee contributes an amount equal to 1% of his/her salary (Article 7). Premiums shall be collected by the local tax authority; the employees shall deduct the employee's premiums from his/her pre-tax wages (Article 8). If a work unit is unable to make payment of premiums on time, it may apply to the local tax authority for an extension of the payment period and provide assets as a guaranty against the due amount, but the period of extension may not exceed six months (Article 9). Merged or divided work units shall enjoy and bear the unemployment insurance rights and obligations of the original work unit respectively (Article 10).
Part Three describes the administration of benefits. Unemployed workers may enjoy unemployment insurance benefits when they and their work units have participated in the programme for a year, they did not choose to become unemployed and they have the request for employment (Article 14). The maximum period of coverage is 24 months, depending on the period of premiums paid (Article 16). Benefits shall equal 80% of the local minimum wage (Article 17). The unemployed person may enjoy a medical subsidy while collecting benefits (Article 18).
Part Four outlines the administration of unemployment insurance programme. Work units shall register with the competent agency within 30 days of obtaining their operating licence (Article 28).
Where acts on the part of the employer cause the employee to be unable to enjoy benefits, the employer shall compensate the employee (Article 41).
Related legislation: PRC Labour Law, Jul 5 1994, CLP 1994 No.7 p21