PRC Social Insurance Law

(Adopted at the 17th Session of the Standing Committee of the Eleventh National People's Congress on October 28 2010 and effective as of July 1 2011.)

PRC President's Order (No.35 of the 11th NPC)

Part One: General provisions

Article 1: This Law has been formulated pursuant to the Constitution in order to regulate social insurance relationships, safeguard the lawful rights and interests of citizens when enrolled in social insurance and enjoying social insurance benefits, enable citizens to share in the fruits of development and promote social harmony and stability.

Article 2: The state has established social insurance systems such as the basic old-age insurance system, basic medical insurance system, occupational injury insurance system, unemployment insurance system and maternity insurance system to secure citizens' right to obtain material assistance from the state and society in accordance with the law when they are retired, ill, suffer an occupational injury, are unemployed, give birth, etc.

Article 3: The social insurance systems adhere to the guiding principles of wide coverage, ensuring the basics, multiple levels and sustainability, and the level of social insurance shall be consistent with the level of socioeconomic development.

Article 4: Employers and individuals in the People's Republic of China shall pay social insurance premiums in accordance with the law, and have the right to review contribution records and records of individual rights and interests and require social insurance-handling organisations to provide social insurance inquiry and other such relevant services.

Individuals shall be eligible for social insurance benefits in accordance with the law and have the right to monitor the contributions made for them by their employers.

Article 5: People's governments at the county level and above shall include the social insurance undertaking in their national economic and social development plans.

The state will raise social insurance funds through numerous channels. People's governments at the county level and above shall give necessary funding support to the social insurance undertaking.

The state supports the social insurance undertaking through favourable tax policies.

Article 6: The state subjects social insurance funds to strict regulation.

The State Council and people's governments of the provinces, autonomous regions and municipalities directly under the central government shall establish and enhance social insurance fund oversight systems so as to ensure that social insurance funds operate safely and effectively.

People's governments at the county level and above shall take measures to encourage all sections of society to participate in the monitoring of social insurance funds and to support them in doing so.

Article 7: The State Council's social insurance administrative department shall be responsible for the administration of social insurance nationwide, and other relevant departments of the State Council shall be responsible for relevant social insurance work falling within their respective purviews.

The social insurance administrative departments of local people's governments at the county level and above shall be responsible for the administration of social insurance within their administrative regions, and other relevant departments of local people's governments at the county level and above shall be responsible for relevant social insurance work falling within their respective purviews.

Article 8: Social insurance-handling organisations shall provide social insurance services, and be responsible for tasks such as social insurance registration, keeping records of individual rights and interests, and payment of social insurance benefits.

Article 9: Labour unions shall safeguard the lawful rights and interests of staff and workers in accordance with the law, have the right to participate in the consideration of material matters relating to social insurance and serve on the social insurance supervision committee, monitoring matters relating to the social insurance rights and interests of staff and workers.

Part Two: Basic old-age insurance

Article 10: Staff and workers shall enrol in basic old-age insurance, and basic old-age insurance premiums shall be paid jointly by the employer and its staff and workers.

Family proprietorships without employees, non full-time workers not enrolled in basic old-age insurance with their employers and other flexibly employed persons may enrol in basic old-age insurance and shall themselves pay the basic old-age insurance premiums.

Measures for the old-age insurance of civil servants and working personnel subject to management by reference to the law on civil servants will be formulated by the State Council.

Article 11: A combination of social pooling and individual accounts is implemented for basic old-age insurance.

A basic old-age insurance fund shall consist of contributions by employers and individuals, government subsidies, etc.

Article 12: An employer shall pay basic old-age insurance premiums at the percentage of its payroll specified by the state and the same shall be credited to the basic old-age insurance pooling fund.

A staff member or a worker shall pay basic old-age insurance premiums at the percentage of his/her wage specified by the state and the same shall be credited to his/her individual account.

An individual proprietorship without staff and workers, a non full-time worker not enrolled in basic old-age insurance with his/her employer or other flexibly employed person enrolled in basic old-age insurance shall pay basic old-age insurance premiums as specified by the state, and the same shall be divided and credited to the basic old-age insurance pooling fund and his/her individual account.

Article 13: The basic old-age insurance premiums payable during the deemed contribution years before the staff and workers of state-owned enterprises and public institutions enrol in basic old-age insurance shall be borne by the government.

In the event that a basic old-age insurance fund is unable to make payment due to a shortfall, the government shall provide a subsidy.

Article 14: Funds may not be paid or withdrawn early from an individual account, the interest rate on such account may not be less than the interest rate on fixed-term bank deposits and such account shall be exempt from interest tax. In the event of an individual's death, the balance in his/her individual account may be inherited.

Article 15: Basic old-age pension consists of the pooled old-age pension and individual account old-age pension.

A basic old-age pension is determined based on factors such as the individual's total contribution years, the wages on the basis of which the contributions were made, the local average wage of staff and workers, the amount in the individual account and the average anticipated lifespan of the urban population.

Article 16: If an individual enrolled in basic old-age insurance has, at the time he/she reaches the mandatory retirement age, contributed for a total of at least 15 years, he/she shall receive a monthly basic old-age pension.

If an individual enrolled in basic old-age insurance has, at the time he/she reaches the mandatory retirement age, contributed for less than a total of 15 years, he/she may continue to contribute until he/she has done so for 15 years and receive a monthly basic old-age pension, or, alternatively, he/she may transfer to the new rural social old-age insurance or urban resident social old-age insurance and enjoy the relevant old-age insurance benefits as specified by the State Council.

Article 17: If an individual enrolled in basic old-age insurance dies as the result of an illness or a non-work related cause, his/her dependants may receive a funeral allowance and survivor's benefits. If an individual enrolled in basic old-age insurance becomes disabled and completely unable to work due to an illness or non work-related cause before reaching the mandatory retirement age, he/she may receive a disability allowance. The required funds shall be paid from the basic old-age insurance fund.

Article 18: The state has established a mechanism to make normal adjustments to basic old-age pensions. The level of basic old-age insurance benefits will be increased as appropriate in line with the increase in average wages of staff and workers and inflation.

Article 19: When an individual obtains employment in a different pooling area, his/her basic old-age insurance relationship shall follow him/her, and his/her contribution years shall be calculated together. When he/she reaches the mandatory retirement age, his/her old-age pension shall be divided into stages for calculation purposes but paid as one. The specific measures therefor will be formulated by the State Council.

Article 20: The state has established and will enhance a new rural social old-age insurance system.

A combination of individual contributions, collective subsidy and government subsidy is implemented for the new rural social old-age insurance.

Article 21: New rural social old-age insurance benefits are composed of a basic old-age pension and individual account old-age pension.

A rural resident enrolled in new rural social old-age insurance who satisfies the conditions specified by the state shall receive monthly new rural social old-age insurance benefits.

Article 22: The state has established and will enhance a social old-age insurance system for urban residents.

Depending on actual circumstances, the people's government of a province, autonomous region or municipality directly under the central government may implement social old-age insurance for urban residents and new rural social old-age insurance concurrently.

Part Three: Basic medical insurance

Article 23: Staff and workers shall enrol in basic medical insurance for staff and workers, and basic medical insurance premiums shall be paid jointly by the employer and its staff and workers in accordance with state provisions.

A family proprietorship without staff and workers, a non full-time worker not enrolled in basic medical insurance for staff and workers with his/her employer or other flexibly employed person may enrol in basic medical insurance for staff and workers and shall himself/herself pay the basic medical insurance premiums in accordance with state provisions.

Article 24: The state has established and will enhance a new rural cooperative medical system.

The measures for the administration of new rural cooperative medical treatment will be specified by the State Council.

Article 25: The state has established and will enhance a basic medical insurance system for urban residents.

A combination of individual contributions and government subsidy is implemented for basic medical insurance for urban residents.

The individual contributions required of persons such as those eligible for minimum living standard protection, disabled persons who have lost the capacity to work, and seniors above the age of 60 and minors of low-income families shall be subsidised by the government.

Article 26: The benefit rates of basic medical insurance for staff and workers, new rural cooperative medical treatment and basic medical insurance for urban residents shall follow state provisions.

Article 27: An individual enrolled in basic medical insurance for staff and workers whose total contributions, at the time he/she reaches the mandatory retirement age, reach the number of years prescribed by the state shall cease to pay basic medical insurance premiums once he/she retires and shall enjoy basic medical insurance benefits in accordance with state provisions. If his/her total contributions have not reached the number of years prescribed by the state, he/she may continue to contribute until they do so.

Article 28: Medical expenses that comply with the basic medical insurance pharmaceutical list, treatment items and medical service facility standards as well as those for emergency treatment and emergency life-saving shall be paid from the basic medical insurance fund in accordance with state provisions.

Article 29: The portion of an insured's medical expenses payable from the basic medical insurance fund shall be settled by the social insurance-handling organisation directly with the medical institution or pharmaceutical dealer.

The social insurance administrative department and health administrative department shall establish a system for the settlement of medical expenses for medical treatment received by an individual outside his/her home area so as to facilitate the insured's enjoyment of basic medical insurance benefits.

Article 30: The following medical expenses shall not be included in the scope of expenses paid from the basic medical insurance fund:

(1) those payable from the occupational injury insurance fund;

(2) those bearable by a third party;

(3) those bearable by public health; and

(4) those for medical treatment sought abroad.

If, in accordance with the law, a medical expense is bearable by a third party and such third party fails to pay the same or the third party is impossible to determine, the same shall first be paid from the basic medical insurance fund. Once the basic medical insurance fund has paid the same, it shall have the right to recover the same from the third party.

Article 31: As required for the management of services, a social insurance-handling organisation may execute a service agreement with medical institutions and pharmaceutical dealers to standardise medical services.

Medical institutions shall provide reasonable and necessary medical services to the insured.

Article 32: If an individual obtains employment in a different pooling area, his/her basic medical insurance relationship shall follow him/her, and his/her contribution years shall be calculated together.

Part Four: Occupational injury insurance

Article 33: Staff and workers shall enrol in occupational injury insurance. Occupational injury insurance premiums shall be paid by the employer and its staff and workers shall not pay occupational injury insurance premiums.

Article 34: The state determines differential premium rates for industries based on their different degrees of occupational injury risk and determines premium rate brackets within each industry based on the use of the occupational injury insurance fund, rate of occurrence of occupational injuries, etc. The differential premium rates between industries and the premium rate brackets within industries shall be formulated by the State Council's social insurance administrative department, and published and implemented after approval by the State Council.

The social insurance-handling organisation shall determine an employer's contribution rate based on such employer's use of the occupational injury insurance fund, its rate of occurrence of occupational injuries and the premium rate bracket of its industry.

Article 35: An employer shall pay occupational injury insurance premiums based on its payroll at the premium rate determined by the social insurance-handling organisation.

Article 36: A staff member or a worker who has been injured in an accident due to work or contracted an occupational illness shall be eligible for occupational injury insurance benefits if such injury or illness is recognised as an occupational injury, and if through an assessment of his/her work capacity is found to have lost such capacity, he/she shall be eligible for disability benefits.

Recognition of occupational injury and assessments of work capacity shall be simple and convenient.

Article 37: The injury or death of a staff member or a worker during the course of work shall not be recognised as an occupational injury if:

(1) he/she was deliberately committing a crime;

(2) he/she was intoxicated or had taken drugs;

(3) he/she deliberately injured himself/herself or committed suicide; or

(4) another circumstance specified in laws or administrative regulations obtained.

Article 38: The following expenses incurred as a result of an occupational injury shall be paid from the occupational injury insurance fund in accordance with state provisions:

(1) medical expenses and rehabilitation expenses for treatment of the occupational injury;

(2) hospital meal allowance;

(3) transportation, meal and accommodation expenses for seeking medical assistance outside of the pooling area;

(4) expenses required for the installation of disability aids;

(5) where the person cannot take care of himself/herself, the nursing care fees confirmed by the work capacity assessment committee;

(6) the one-time disability compensation and the monthly disability allowance received by grade 1 to grade 4 disabled staff and workers;

(7) the one-time medical compensation for which the staff member or worker is eligible at the time of the ending or termination of his/her employment contract;

(8) if the staff member or worker died due to work-related causes, the funeral allowance, survivor's benefits and work-related death allowance received by his/her dependants; and

(9) the work capacity assessment fee.

Article 39: The following expenses incurred as a result of an occupational injury shall be paid by the employer in accordance with state provisions:

(1) wages and the benefits during the period of treatment of the occupational injury;

(2) the monthly disability allowance received by grade 5 and 6 disabled staff and workers; and

(3) the one-time disability employment compensation that the staff member or worker is eligible for at the ending or termination of his/her employment contract.

Article 40: A staff member or a worker who has sustained an occupational injury who satisfies the conditions for receiving a basic old-age pension shall cease to be paid the disability allowance and enjoy basic old-age insurance benefits. If the basic old-age insurance benefits are lower than the disability allowance, the difference shall be made up from the occupational injury insurance fund.

Article 41: If the employer of a staff member or a worker fails to pay occupational injury insurance premiums in accordance with the law and an accident occurs causing him/her to sustain an occupational injury, the employer shall pay his/her occupational injury insurance benefits. If the employer fails to pay, the same shall first be paid from the occupational injury insurance fund.

The occupational injury insurance benefits first paid from the occupational injury insurance fund shall be reimbursed by the employer. If the employer fails to reimburse the same, the social insurance-handling organisation may seek recovery thereof in accordance with Article 63 hereof.

Article 42: If an occupational injury occurs due to a reason attributable to a third party, and such third party fails to pay the expenses for treatment of the occupational injury or the third party is impossible to determine, payment shall first be made from the occupational injury insurance fund. After the occupational injury insurance fund has made payment, it shall have the right to seek recovery thereof from the third party.

Article 43: A staff member or a worker who sustained an occupational injury shall cease to be eligible for occupational injury insurance benefits if:

(1) he/she ceases to satisfy the conditions for eligibility for such benefits;

(2) he/she refuses to undergo a work capacity assessment; or

(3) he/she refuses treatment.

Part Five: Unemployment insurance

Article 44: Staff and workers shall enrol in unemployment insurance, and unemployment insurance premiums shall be paid jointly by the employer and the staff and workers in accordance with state provisions.

Article 45: An unemployed person satisfying the following conditions shall receive unemployment insurance payments from the unemployment insurance fund:

(1) before becoming unemployed, his/her employer and he himself or she herself had paid unemployment insurance premiums for at least one year;

(2) the interruption in his/her employment was not of his/her own volition; and

(3) he/she has carried out unemployment registration and is seeking employment.

Article 46: If, before becoming unemployed, an unemployed person's employer and he himself or she herself had contributed for a total of at least one year but less than five years, he/she may receive unemployment insurance payments for up to 12 months; if contributions were made for a total of at least five years but less than 10 years, he/she may receive unemployment insurance payments for up to 18 months; and if contributions were made for a total of at least 10 years, he/she may receive unemployment insurance payments for up to 24 months. If, after finding employment, he/she again becomes unemployed, the contribution period shall commence to count again, and the time limit for receiving unemployment insurance payments shall be added to the outstanding portion of the time limit for receiving unemployment insurance payments for the previous time he/she was unemployed, up to a maximum of 24 months.

Article 47: The rate for unemployment insurance payments shall be determined by the people's government of the province, autonomous region or municipality directly under the central government, but may not be lower than the minimum standard of living for urban residents.

Article 48: An unemployed person who is enrolled in basic medical insurance for staff and workers during the period he/she is receiving unemployment insurance payments shall be eligible for basic medical insurance benefits.

The basic medical insurance premiums of an unemployed person shall be paid from the unemployment insurance fund, and the individual shall not pay basic medical insurance premiums himself/herself.

Article 49: If an unemployed person dies while he/she is receiving unemployment insurance payments, a one-time funeral allowance and survivor's benefits shall be paid to his/her dependants with reference to local provisions on the death of currently employed staff and workers. The required funds shall be paid from the unemployment insurance fund.

If, at the time an individual dies, he/she simultaneously satisfies the conditions for receiving the basic old-age insurance funeral allowance, occupational injury insurance funeral allowance and unemployment insurance funeral allowance, his/her dependants may only select one of them.

Article 50: An employer shall issue a proof of ending or termination of the employment relationship in a timely manner for a person who becomes unemployed and shall submit the list of unemployed persons to the social insurance-handling organisation within 15 days from the date on which the employment relationship ended or was terminated.

The unemployed person shall carry out unemployment registration with the designated public employment service organisation in a timely manner on the strength of the proof of ending or termination of the employment relationship issued by his/her employer.

The unemployed person shall carry out the procedures for receiving unemployment insurance payments with the social insurance-handling organisation on the strength of the proof of unemployment registration and his/her proof of identity. The period for receiving unemployment insurance payments shall commence to count from the date on which unemployment registration was carried out.

Article 51: An unemployed person shall cease to receive unemployment insurance payments and cease to be eligible for other unemployment insurance benefits if any of the following circumstances arises while he/she is receiving unemployment insurance payments:

(1) he/she finds new employment;

(2) he/she is conscripted for military service;

(3) he/she moves abroad;

(4) he/she becomes eligible for basic old-age insurance benefits; or

(5) he/she refuses, without just cause, to accept appropriate work introduced, or training provided, by the department or organisation designated by the local people's government.

Article 52: If a staff member or a worker obtains employment in a different pooling area, his/her unemployment insurance relationship shall follow him/her, and his/her contribution years shall be calculated together.

Part Six: Maternity insurance

Article 53: Staff and workers shall enrol in maternity insurance. Maternity insurance premiums shall be paid by the employer in accordance with state provisions, and staff and workers shall not pay maternity insurance premiums.

Article 54: If an employer has paid maternity insurance premiums, its staff and workers shall be eligible for maternity insurance benefits; and the stay-at-home spouses of staff and workers shall be eligible for maternity medical expense benefits in accordance with state provisions. The required funds shall be paid from the maternity insurance fund.

Maternity insurance benefits include maternity medical expenses and a maternity allowance.

Article 55: Maternity medical expenses cover the following:

(1) maternity-related medical expenses;

(2) family planning-related medical expenses; and

(3) expenses for other items specified in laws and regulations.

Article 56: A staff member or a worker shall be eligible for the maternity allowance in accordance with state provisions when:

(1) she has given birth and taken maternity leave;

(2) has taken leave after a sterilisation operation; or

(3) another circumstance specified in laws or regulations obtains.

The maternity allowance shall be calculated and paid according to the monthly average wage of the employer's staff and workers during the previous year.

Part Seven: Collection and payment of social insurance premiums

Article 57: An employer shall apply for social insurance registration to the local social insurance-handling organisation on the strength of its business licence, registration certificate or seal within 30 days from the date of its establishment. The social insurance-handling organisation shall complete its review and issue a social insurance registration certificate within 15 days from the date of receipt of the application.

In the event of a change in an employer's social insurance registration particulars or the event of the termination of its business in accordance with the law, it shall carry out the procedures for amendment or cancellation of its social insurance registration with the social insurance-handling organisation within 30 days from the date of the change or termination.

The administration for industry and commerce, civil affairs department and authority in charge of organisation establishment shall notify the social insurance-handling organisation of the establishment and termination of business of employers in a timely manner, and the public security authority shall notify the social insurance-handling organisation of the births and deaths of individuals and the registration, relocation and cancellation of their permanent residence in a timely manner.

Article 58: An employer shall apply to the social insurance-handling organisation for social insurance registration for a staff member or a worker within 30 days from the date on which such staff member or worker was employed. If it fails to carry out social insurance registration, the social insurance-handling organisation shall assess the social insurance premiums payable by it.

Family proprietorships without employees, non full-time workers not enrolled in social insurance with their employers and other flexibly employed persons who voluntarily enrol in social insurance shall apply to the social insurance-handling organisation for social insurance registration.

The state has established a uniform nationwide system of individual social security numbers. An individual social security number shall be the citizen's ID number.

Article 59: People's governments at the county level and above shall strengthen the collection of social insurance premiums.

Social insurance premiums shall be subject to collection in a uniform manner, and the implementation steps and specific measures therefor will be specified by the State Council.

Article 60: An employer shall itself report and punctually pay social insurance premiums in full, and may not delay payment, reduce payment or fail to make payment thereof for other than force majeure or other such statutory reason. The social insurance premiums payable by staff and workers shall be withheld by their employer and the employer shall inform staff and workers of the details of its payment of social insurance premiums on a monthly basis.

Family proprietorships without employees, non full-time workers not enrolled in social insurance with their employers and other flexibly employed persons may directly pay social insurance premiums to the social insurance premium collection organisation.

Article 61: The social insurance premium collection organisation shall punctually collect social insurance premiums in full in accordance with the law and shall inform the employer and the individual regarding the contributions on a regular basis.

Article 62: If an employer fails to report the amount of social insurance premiums payable by it in accordance with provisions, the amount payable by it shall be determined to be 110% of the amount of the contributions it made the preceding month. Once the contributing employer has carried out the delayed reporting procedures, the social insurance premium collection organisation shall carry out settlement in accordance with provisions.

Article 63: If an employer fails to punctually pay social insurance premiums in full, the social insurance premium collection organisation shall order it to make payment or pay the shortfall within a specified period of time.

If the employer still has not paid or made up the shortfall in the social insurance premiums by the expiration of the specified period of time, the social insurance premium collection organisation may make inquiries concerning its deposit accounts with its bank or other financial institution, and may apply to the relevant administrative department at the county level and above requesting that it render a decision to transfer the social insurance premiums and notify the employer's bank or other financial institution in writing to transfer the social insurance premiums. If the balance in the employer's account is less than the social insurance premiums payable by it, the social insurance premium collection organisation may require the employer to provide security and execute a delayed contribution agreement.

If an employer fails to pay social insurance premiums in full and fails to provide security, the social insurance premium collection organisation may petition a people's court to seize, place under seal or auction property the value of which is equivalent to the outstanding social insurance premiums, and use the proceeds from the auction to set off the social insurance premiums.

Part Eight: Social insurance funds

Article 64: Social insurance funds include the basic old-age insurance fund, basic medical insurance fund, occupational injury insurance fund, unemployment insurance fund and maternity insurance fund. Separate accounts shall be opened for each social insurance fund based on its social insurance risk types, and such accounts shall be accounted for separately, and each such account shall be subject to the state's uniform accounting system.

Moneys in each of the social insurance funds shall be used exclusively for their purpose, and no organisation or individual may appropriate the same or divert the same for other purposes.

Nationwide pooling shall gradually be implemented for the basic old-age insurance fund, and provincial-level pooling shall gradually be implemented for the other social insurance funds. The specific times and steps therefor will be specified by the State Council.

Article 65: The social insurance funds shall achieve a balance of receipts and expenditures through budgeting.

When a social insurance fund is unable make payment due to a shortfall, the people's government at the county level or above shall provide a subsidy.

Article 66: A social insurance fund shall establish its budget based on its pooling level. The budgets of each social insurance fund shall be prepared separately based on the social insurance item.

Article 67: The preparation, review and approval of the budgets and draft final accounts of social insurance funds shall be handled in accordance with laws and State Council provisions.

Article 68: Social insurance funds shall be deposited into dedicated financial accounts, and the specific administrative measures therefor will be specified by the State Council.

Article 69: Subject to their safety being ensured, the investment operations of social insurance funds shall maintain and increase the value of such funds in accordance with State Council provisions.

Social insurance funds may not invest in a manner that runs counter to provisions, may not be used to balance other government budgets, may not be used to construct or alter office premises or pay personnel expenses, operational expenses, management expenses or be diverted for other purposes in violation of laws or administrative regulations.

Article 70: A social insurance-handling organisation shall publish information on enrollment in social insurance and information on social insurance fund receipts, expenditures, balances and returns on a regular basis.

Article 71: The state establishes the National Social Security Fund, and the funds consisting of moneys allocated from the central financial budget and raised by other means approved by the State Council shall be used for the supplementation and adjustment of social security expenditures. The management and operation organisation of the National Social Security Fund shall be responsible for the management and operation of the national social security fund, and shall maintain and increase the value thereof while ensuring its safety.

Information on the receipts, expenditures, management and investment operations of the national social security fund shall be published on a regular basis. The State Council's finance department, social insurance administrative department and audit authority shall monitor the national social security fund's receipts, expenditures, management and investment operations.

Part Nine: Handling of social insurance

Article 72: A pooling area shall establish a social insurance-handling organisation. A social insurance-handling organisation may, based on its work requirements and with the approval of the local social insurance administrative department and authority in charge of organisation establishment, establish branches and service locations in its pooling area.

A social insurance-handling organisation's personnel costs and basic operational expenses and management expenses incurred in the handling of social insurance shall be ensured in accordance with state provisions from the fiscal resources at the same level.

Article 73: A social insurance-handling organisation shall establish and enhance operational, financial, safety and risk management systems.

A social insurance-handling organisation shall punctually pay social insurance benefits in full.

Article 74: A social insurance-handling organisation shall obtain the data required for social insurance work through its handling of operations, statistics and surveys, and relevant entities and individuals shall truthfully provide such data in a timely manner.

A social insurance-handling organisation shall open a file for an employer in a timely manner, completely and accurately record social insurance data such as the persons enrolled in social insurance and contributions, and duly keep the original registration and reporting documents and the payment settlement accounting vouchers.

A social insurance-handling organisation shall, in a timely manner, completely and accurately record contributions made by individuals enrolled in social insurance and the contributions made for them by their employers as well as records of individual rights and interests, such as social insurance benefits enjoyed, and shall mail the records of individual rights and interests to the persons in question on a regular basis free of charge.

Employers and individuals may inquire about the record of their contributions and enjoyment of social insurance benefits to the social insurance-handling organisation and check the same free of charge, and require the social insurance-handling organisation to provide social insurance advice and other such relevant services.

Article 75: The national social insurance information system is jointly established by people's governments at the county level and above based on the principle of the division of responsibilities by level and in accordance with the state's uniform plan.

Part Ten: Social insurance supervision

Article 76: The standing committee of a people's congress at any level shall exercise its supervision function in accordance with the law by listening to and considering the special work reports of the people's government at the same level on the social insurance funds' receipts, expenditures, management, investment operations and monitoring inspections, arranging for law enforcement inspections of the implementation of this Law, etc.

Article 77: The social insurance administrative department of a people's government at the county level or above shall strengthen its monitoring inspections of the compliance by employers and individuals with social insurance laws and regulations.

When the social insurance administrative department conducts a monitoring inspection, the employer or individual being inspected shall truthfully provide information relating to social insurance, and may not refuse such inspection, provide false information or conceal information.

Article 78: The finance department and audit authority shall supervise the social insurance funds' receipts, expenditures, management and investment operations within their purviews.

Article 79: If the social insurance administrative department, when conducting a monitoring inspection of a social insurance fund's receipts, expenditures, management and investment operations, discovers a problem, it shall propose a means of rectification and render a handling decision in accordance with the law or submit a proposal for handling the same to the relevant administrative department. The results of inspections of social insurance funds shall be published on a regular basis.

When conducting a monitoring inspection of a social insurance fund, the social insurance administrative department shall have the right to take the following measures:

(1) review, record and take copies of materials concerning the receipts, expenditures, management and investment operations of the social insurance fund, and place materials that could be removed, concealed, destroyed or lost under seal;

(2) question entities and individuals that have a connection with the matter under investigation and require them to give an account of issues relevant to the matter under investigation and provide relevant evidentiary materials; and

(3) put a halt to the concealment, transfer, misappropriation or diversion of the social insurance fund and order rectification.

Article 80: The people's government of a pooling area shall establish a social insurance supervision committee consisting of employer representatives, representatives of the insured, labour union representatives and experts to understand and analyse the receipts, expenditures, management and investment operations of social insurance funds, and provide advice on and proposals for social insurance work so as to achieve supervision of the funds by the public.

A social insurance-handling organisation shall regularly report on the receipts, expenditures, management and investment operations of social insurance funds to the social insurance supervision committee. The social insurance supervision committee may engage an accounting firm to conduct annual audits and particular audits of the receipts, expenditures, management and investment operations of a social insurance fund. The results of such audits shall be published.

If the social insurance supervision committee discovers a problem in the receipts, expenditures, management or investment operations of a social insurance fund, it shall have the right to advance proposals for the rectification thereof; and shall have the right to put forth suggestions to the relevant department on dealing in accordance with the law with legal violations by the social insurance-handling organisation and its working personnel.

Article 81: The social insurance administrative department and other relevant administrative departments, the social insurance-handling organisation and social insurance premium collection authority and their working personnel shall maintain the confidentiality of the information of employers and individuals in accordance with the law, and may not divulge such information in any manner.

Article 82: Any organisation or individual shall have the right to report or file complaints in respect of a violation of social insurance laws or regulations.

The social insurance administrative department, public health administrative department, social insurance-handling organisation, social insurance premium collection organisation, finance department and audit authority shall deal with reports and complaints falling within its purview in accordance with the law. With respect to a report or complaint falling outside its purview, it shall notify in writing the department or organisation with the authority to deal with the same and transfer the report or complaint to it. The department or organisation with the authority to deal with such report or complaint shall deal therewith in a timely manner and may not attempt to shift responsibility therefor.

Article 83: If an employer or individual is of the opinion that an act by the social insurance premium collection organisation infringes upon its/his/her lawful rights and interests, it/he/she may apply for administrative review or file an administrative lawsuit in accordance with the law.

An employer or individual may apply for administrative review or file an administrative lawsuit in accordance with the law in respect of the failure by the social insurance-handling organisation to carry out social insurance registration, assess social insurance premiums, pay social insurance benefits, carry out social insurance transfer or acceptance procedures in accordance with the law or of its commission of another act that infringes upon its/his/her social insurance rights and interests.

If a social insurance dispute arises between an individual and his/her employer, he/she may apply for mediation, arbitration or institute a legal action in accordance with the law. If the employer infringes upon the individual's social insurance rights and interests, he/she may request that the social insurance administrative department or social insurance premium collection organisation handle the matter in accordance with the law.

Part Eleven: Legal liability

Article 84: If an employer fails to carry out social insurance registration, the social insurance administrative department shall order it to rectify the matter within a specified period of time. If the employer fails to do so, the social insurance administrative department shall impose a fine of not less than one time and not more than three times the amount of the outstanding social insurance premiums, and on the supervisor directly in charge and other directly responsible persons a fine of not less than Rmb500 and not more than Rmb3,000.

Article 85: If an employer refuses to issue a proof of the ending or termination of an employment relationship, matters shall be handled in accordance with the PRC Employment Contract Law.

Article 86: If an employer fails to punctually pay social insurance premiums in full, the social insurance premium collection organisation shall order it to make payment or pay the shortfall within a specified period of time and impose a late payment fine at the rate of 0.05% per day commencing from the date of delinquency. If it still fails to make payment during the specified period of time, the relevant administrative department shall impose a fine of not less than one time and not more than three times the outstanding amount.

Article 87: If a social insurance-handling organisation, or a medical institution, pharmaceutical dealer or other such social insurance service organisation illegally obtains social insurance fund payments by fraud, forging of supporting documentation or other such means, the social insurance administrative department shall order it to return the illegally obtained insurance proceeds, and impose a fine of not less than twice and not more than five times the illegally obtained amount; if the perpetrator was a social insurance service organisation, its service agreement shall be terminated; and if its supervisor directly in charge and other directly responsible persons hold practice qualifications, such practice qualifications shall be revoked in accordance with the law.

Article 88: If social insurance benefits are illegally obtained by fraud, forging of supporting documentation or other such means, the social insurance administrative department shall order the return of the illegally obtained benefits, and impose a fine of not less than twice and not more than five times the illegally obtained amount.

Article 89: The social insurance administrative department shall order rectification if any of the following circumstances apply to a social insurance-handling organisation or its working personnel; and if the same causes a social insurance fund, employer or an individual to incur a loss, it shall be liable for damages in accordance with the law; and the supervisor directly in charge and other directly responsible persons shall be sanctioned in accordance with the law:

(1) failed to perform its/their statutory social insurance duties;

(2) failed to deposit the social insurance fund into a dedicated financial account;

(3) illegally retained a part of or failed to punctually pay social insurance benefits;

(4) lost or altered social insurance data such as contribution records and records of enjoyment of social insurance benefits, or records of individual rights and interests; or

(5) committed another violation of social insurance laws or regulations.

Article 90: If a social insurance premium collection organisation revises the social insurance premium contribution base figure or premium rate without authorisation, resulting in the under-collection or over-collection of social insurance premiums, the relevant administrative department shall order it to pay the outstanding social insurance premiums or to return the social insurance premiums that ought not have been paid; and the supervisor directly in charge and other directly responsible persons shall be sanctioned in accordance with the law.

Article 91: If this Law is violated by concealing, transferring, misappropriating or diverting a social insurance fund or by illegal investment operations, the social insurance administrative department, finance department and audit authority shall order recovery thereof; if there is illegal income, the same shall be confiscated; and the supervisor directly in charge and other directly responsible persons shall be sanctioned in accordance with the law.

Article 92: If a social insurance administrative department or other relevant administrative department, a social insurance-handling organisation, a social insurance premium collection organisation or a member of the working personnel thereof divulges information of an employer or an individual, the supervisor directly in charge and other directly responsible persons shall be sanctioned in accordance with the law; and if the employer or individual incurs a loss as a result thereof, it/he/she shall be liable for damages.

Article 93: If a member of the working personnel of the state abuses his/her authority, is derelict in his/her duties or practise favouritism by committing fraud in the course of the administration or supervision of social insurance, he/she shall be sanctioned in accordance with the law.

Article 94: If a violation of this Law constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Part Twelve: Supplementary provisions

Article 95: Rural residents who migrate to urban areas for work shall enrol in social insurance in accordance with this Law.

Article 96: If land owned by a rural collective is requisitioned, the social insurance premiums of the farmers whose land was requisitioned shall be arranged in full, and the farmers whose land was requisitioned shall be included in the pertinent social insurance systems in accordance with State Council provisions.

Article 97: Foreign nationals who take up employment in China shall enrol in social insurance with reference to this Law.

Article 98: This Law shall be effective as of July 1 2011.