Ministry of Human Resources and Social Security and Ministry of Finance, Measures for Enterprise Annuities

人力资源社会保障部、财政部企业年金办法

March 30, 2018 | BY

Susan Mok &

Enterprise contribution to annuities may not exceed 8% of total payroll.

Clp Reference: 2410/17.12.18 Promulgated: 2017-12-18 Effective: 2018-02-01

Promulgated: December 18 2017

Effective: February 1 2018

Applicability: For the purposes of these Measures, the term “enterprise annuity” means a supplementary old-age insurance system established by an enterprise and its employees of their own accord on the basis of lawful enrollment in basic old-age insurance (Article 2).

Main contents: The premiums paid each year by an enterprise shall not exceed 8% of its total payroll. The total of the premiums paid by the enterprise and its individual employees shall not exceed 12% of the enterprise's total payroll (Article 15).

The maximum amount and average amount of the premiums credited to an employee's individual enterprise annuity account by the enterprise for the period in question may not exceed five times (Article 18).

The premiums paid by the individual employee into his/her individual enterprise annuity account and the returns on the investment thereof shall always vest in the employee himself/herself.

With respect to the premiums paid by the enterprise into an employee's individual enterprise annuity account and the returns from the investment thereof, the enterprise may specify with the employee that the same always vest in the employee himself /herself, or, alternatively, that the same progressively vest in the employee himself/herself in line with the increase in his/her years of service with the enterprise. The maximum period for the same to fully vest in the employee himself/herself may not exceed eight years (Article 19).

Repealed legislation: Trial Measures for Enterprise Annuities, January 6 2004

clp reference:2410/17.12.18 promulgated:2017-12-18 effective:2018-02-01

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