New Regulation: Social Insurance

Sunday, December 28, 2008 23:27
Posted in category Red Tape
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Following the announcement that China plans to establish social security number system,news that China has drafted its first law on social insurance came soon after.

According to the article:

It specifies a common right for citizens, urban and rural alike, to pay premiums and enjoy social insurance for medical care, work injuries, unemployment and childbirth.

The draft highlights more efficient fund management. Governments at municipal, provincial and the state-level should encourage and support the public’s participation in supervising insurance funds.

However, the most important piece of information that I have been able to see is that workers will be able to pay into the system and pull benefits in different locations.  A huge boost for China’s migrant labor, and a key consideration for managers who will be called on to move around China to open new markets.

For firms, the true impact will be largely unknown as there are still a minimum of to readings before this becomes law, but this is surely one of those pieces of regulation that if done right will have a wide impact on China.

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