Changes to Social Security Insurance in China
Regulatory update 2 minute read

Changes to Social Security Insurance in China

26 June 2020

China has updated their social security insurance policies with some noteworthy changes.



What’s new?

1. Faster social security card application process

The State Council and the Ministry of Human Resources and Social Security will facilitate a faster application process for social security cards through the nationwide integrated online government service platform.

2. Merging of Maternity Insurance with Basic Medical Insurance

The State Council is combining Maternity Insurance and Employee Basic Medical Insurance for employees. Maternity allowance and birth delivery medical expenses will be paid from the basic medical insurance fund.

3. Withdrawing pension payments

Retirees can use their social security card to receive their pension payments.

4. Online system for pension insurance transfer

Inter-district pension insurance account transfers can now be completed through the online government service platform. Previously, if an individual changed to a new job in another city they had to visit offices in both cities, in person, to transfer the pension account.

5. Faster unemployment insurance application approval process

The Ministry of Human Resources and Social Security announced they would speed up the online application process for unemployment insurance premiums.

What’s the reason for the change?

The government of China wanted to improve and digitise the social security insurance process.

When does it come into force?

These changes will or have already taken effect in 2020.

What should you do now?

Companies operating in China need to understand the changes in the SSI process and communicate the changes to employees. This may require modifying internal processes and updating employee handbooks.

How we can help?

TMF China can help provide your business with the latest information about social security insurance changes and other benefit developments that may affect your employees.  We stay ahead of the latest developments in HR administration to ensure our clients stay compliant.

Want to know more about the SSI changes or our services? Talk to us.


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