Shanghai Municipality, Non-local Employees Comprehensive Insurance Tentative Measures

Promulgated: July 22 2002
Effective: September 1 2002
Applicability: The Measures apply to organizations and enterprises (including non-local construction enterprises) operating within the administrative jurisdiction of the Shanghai municipality that are allowed to employ non-local employees, and to non-local employees employed thereof as well as non-local employees not belonging to any work unit (Article 3).
The Measures do not apply to domestic helpers, agricultural workers or personnel introduced in accordance with the Implementation of the System of on Introduced Skilled Personnel Tentative Provisions
(Article 3).
For the purposes of the Measures, a non-local employee is an individual who fulfils the employment requirements of Shanghai to seek employment or do business there but does not possess residency in the municipality. Non-local employees comprehensive insurance shall include coverage for work-related injury (or accidental damage), hospital stay and treatment and old age pensions (Article 2).

Main contents: Employers of non-local employees and non-local employees not belonging to any work unit shall pay comprehensive insurance premiums (Article 5). Comprehensive insurance premiums shall be paid quarterly (Article 8). The base number for calculating insurance premiums paid by the employer is obtained by multiplying the total number of non-local employees by 60% of the average monthly wage in the municipality; the employer shall pay 12.5% of the base number, but non-local construction enterprises shall pay 7.5% of the base number (Article 9).
Non-local workers shall receive insurance coverage for work-related injury or accidental injury and occupational diseases (Article 14). The insurance fund shall pay 80% of the part of hospital fees that exceed 10% of the average annual wage in the municipality of the previous year; employees for whom premiums have been paid for a year or more shall receive coverage up to four times the average annual wage in the municipality of the previous year (Article 15). After one year of premium payment, the non-local employee shall receive an old age subsidy certificate; the certificate can be cashed upon retirement (Article 16).
Payment and operation of the comprehensive insurance fund may be entrusted to an insurance company
(Article 18).