Laws of the Guangdong Province

Regulation of Shenzhen Economic Special Zone on Social Endowment Insurance for Employees of Enterprises

(Originally adopted at the 27^th meeting of the Standing Committee of the second Shenzhen Municipal People' s Congress on Oct 27, 1998. Revised according to the Decisions on Revision of the Regulations of Shenzhen Special Economic Zone on Social Endowment Insurance for Employees of Enterprises at the third meeting of the Standing Committee of the third Shenzhen Municipal People' s Congress on Nov 12th, 2000.)

Chapter¢ñ General Provisions

Article 1  In order to guarantee the basic needs of life after retirement for employees of enterprises, these regulations are formulated in accordance with the provision of related laws and regulations, drawing upon the factual condition of Shenzhen Special Economic Zone (hereinafter referred to as special zone).

Article 2 The special zone shall set up social endowment insurance system. The social endowment insurance in these regulations contains basic endowment insurance, district supplementary endowment insurance, enterprise supplementary endowment insurance and other multi-layer endowment insurance.

The government shall set up basic endowment insurance and district supplementary endowment insurance, encouraging and upholding enterprises and their employees to join enterprises supplementary endowment insurance and personal savings endowment insurance.

Article 3 The basic endowment insurance" in these regulations shall apply to enterprises (including institutions administrated as enterprises and other organizations run by local people, The same as below.) in special zone and their employees.

"The district supplementary endowment insurance " in these regulations shall apply to enterprises in special zone and their employees registered permanent residence that shall join basic endowment insurance and district supplementary endowment insurance according to the provision of these regulations.

Enterprises and their employees must join basic endowment insurance and district supplementary endowment insurance in accordance with the provision of these regulations.

Article 4 The social endowment insurance follows the principle of the combination of the fairness and efficiency, the right contrary to obligation, and the guarantee level equal to social production development level.

Article 5 The management of basic endowment insurance shall follow the fund administration mode combining social mutual aid and individual account.

The basic endowment insurance premiums and district supplementary endowment insurance premiums shall be channeled to the municipal financial special account. The fund shall operate on two separate lines, and shall be used exclusively for its specified purpose, and the embezzlement shall be prohibited.

Article 6 The Shenzhen municipal people' s government (hereinafter referred to as municipal government) shall set up social insurance administration organization (hereinafter referred to as municipal social insurance organization) that is responsible for the administration of social endowment insurance of shenzhen municipality.

The other related department of municipal government shall assist municipal social insurance administration on the administration of the endowment insurance in their duties.

Chapter ¢ò  Collection of Endowment Insurance Premium

Article 7 The source of basic endowment insurance fund contains: basic endowment insurance premiums and its interests, overdue fines, fines, income from the operation of endowment insurance fund, financial subsidy, and other revenue.

The source of district supplementary endowment insurance fund contains: district supplementary endowment insurance premium and its interests, overdue fines, fines, income from its operation, accumulation, and other revenue.

Article 8 An employee shall pay endowment insurance premiums on basis of his monthly total wage. But if an employee' s monthly average wage is over 300% of those of the town employees in the whole city in the previous year, the excess above the 300% shall not be included in the base for premium payments. In case the monthly average wage of an employee in the previous year is below 60% of those of the employees in the whole city in the previous year, 60% of the monthly average wage of the employees in the whole city in the previous year shall be used as the payment base.

Article 9 The basic endowment insurance premiums shall be paid at the rate of 13% of an employee' s wage, and 8% of which shall be paid by employees themselves and 5% of which shall be paid by enterprises.

The district supplementary endowment insurance premiums shall be paid at the rate of 1% of the total amount of wage paid to all its employees by enterprises.

Article 10 Enterprises and their employees shall pay endowment insurance premiums to municipal social insurance administration monthly, and the endowment insurance premiums bore by employees shall be withheld by enterprises.

Article 11 The bank in which an enterprise opened an account shall transfer the endowment insurance premium to the social insurance fund account opened by the municipal insurance administration after they received it monthly.¡¡

Article 12 The basic endowment insurance premiums paid by enterprises and their employees shall be entered to individual account and mutual aid fund by municipal insurance administration according to the following provision:

(1) 11% of the wage of employees shall be entered to their individual endowment insurance account, and

(2) the other part shall be entered to mutual aid fund.

Article 13 The successive length of service of an employee (except as the years when an employee do not join endowment insurance according to the provision of municipal government ) before July 31, 1992 is looked as payment year to an employee who was redeployed into the city before July 31, 1997.

Article 14 Employees who were redeployed into the city after Aug 1, 1992 need not to complement the mutual fund and individual account.

The mutual aid fund complemented according to relevant provision of municipal government by employees who were redeployed into the city from Aug, 1 1992 to June 30, 1996 shall be transferred to individual account.

Article 15 Employees who have exceeded the age limit of redeployment and were redeployed to the city after July 1, 1996 shall pay overage endowment insurance premium. After that, the successive length of service before they were redeployed into the city shall be looked as payment year.

The payment standard of overage endowment insurance premium shall be decided by municipal in addition.

The overage endowment insurance premium shall be paid by the redeployed employer, and shall be entered to district supplementary insurance fund.

Article 16 The military age (the length of service ) of soldiers who transferred to civilian work, deactivated, or retired from army, allocated to the city and soldier registering in army shall be looked as payment year if it is successive, except as otherwise of armies.

Article 17 Enterprises shall conduct registering and insuring procedure in municipal social insurance in 90 days after they receive the business license.

    Article 18 The enterprise after alteration shall bear the endowment insurance premium and overdue fines owed by enterprise that were transferred, combined, or separated according to laws. In case there are different agreements, the agreed enterprise shall pay it.

When an enterprise is declared bankrupt or dissolved, the endowment insurance premium and overdue fines owed by them shall be paid off at the first order.

Article 19 The endowment insurance premium paid by enterprises shall expenditure from their costing. And individual endowment insurance premium shall expenditure before paying taxation.

Article 20The interest of the savings amount in individual endowment insurance account shall be computed according to the bank interest rate for residents' time deposits mature in the same period, and it shall be totally transferred to employees individual account.

Article 21 The municipal social insurance administration shall periodically supervise the condition on the payment of endowment insurance premium yearly, and grant eligible license to qualified enterprises.

Enterprises shall provide eligible license granted by municipal social insurance administration in conducting the procedure of employing, redeploying and renting or purchasing declined houses.

  Article 22 Enterprises shall provide roll of employees, chart of wages and other related data to municipal social insurance administration when it is supervising the condition on the payment of endowment insurance premium.

Chapter  ¢ó  Endowment Insurance Treatment

Article 23 Employees who can satisfy the following requirements at the same time may draw endowment premium monthly:

(1)they have paid endowment insurance premium as stipulated;

(2)they have reached the age of retirement age stipulated by state; and

(3)they who were registered permanent residence in the city were employed before July 31,1992 and have been working for more than 10 years, or got employed after Aug 1, 1992 and have been working for 15 years, or they do not registered permanent residence and the actual payment term is over 15 years.

Article 24 The worker or jobless person meet the requirements in article 23 may conduct drawing procedure of endowment money to municipal social insurance administration and enjoy the endowment insurance treatment with the approve of the municipal social insurance administration.

Article 25 Basic endowment insurance treatment contains basic endowment premium, funeral allowance, one lamp pension for lineal relatives and basic medical insurance fee.

Article 26 When employees who got employed after Aug 1, 1992 retired, the formula for computing their monthly endowment premium is: basic endowment money + endowment money in individual account,
    Article 27 When employees who got employed before Aug 1, 1992 retired, the formula for computing their monthly basic endowment premium is:

Basic endowment premium + endowment premium in individual account + passing endowment premium+ basic mediate premium.

Article 28 Endowment premium in individual account, passing endowment premium and basic mediate pemium shall expenditure from basic endowment insurance fund.

Individual endowment premium shall expenditure from individual account, or it shall expenditure from basic endowment insurance fund if the individual account is exhaust. The specific computing formula is:

(1)Basic endowment premium is 20 percent of monthly average wage of town employees in the city in the previous year;

(2)Endowment premium in individual account is the saving amount in individual account /120;

(3)basic mediate premium is 10 % of monthly average wage of town employees in the city in 1997;

(4)the standard of passing endowment premium shall be decided by municipal government in addition.

Article 29 The district supplementary insurance treatment contains district interim premium, district passing interim premium, supplementary endowment insurance premium, interim subsidy, and other subsidy.

(1) district interim money shall be computed as 300 minus basic interim money, only for employees who got employed before July 31,1992 while retired after Jan 1, 1999,;

(2)district interim mediate money shall only for employees who got employed from Aug 1,1992 to Dec 31, 1992 and retired from 2007 to 2011. The monthly district interim mediate money of employees who retire in 2007 is 250 yuan, and which shall decline 50 yuan per year after 2008.

 (3)district supplementary insurance money, interim subsidy and other subsidy shall be implemented according to relevant provision of municipal government.

Article 30 Returned overseas Chinese shall be granted complement fee equal to 5% of monthly average wage of town employees in the city in the previous year in addition, if the sum of monthly basic endowment money and district supplementary endowment treatment of returned overseas Chinese is lower than monthly average wage of town employees in the city in the previous year. And the complement fee shall expenditure from basic endowment fund.

Article 31 The treatment of employees who retired before the implementation of these regulations shall not be computed again according to the new provision.

Article 32 The endowment insurance treatment of the retired officer and the old worker who join the revolution before the building of China shall be implemented according to related provision.

Article 33 Employees who meet the requirement of 23(1), (3) and have not reach the age of retirement may conduct the procedure of leaving on condition that they lost the labor capacity completely. The endowment insurance treatment shall decline 1% as to the previous year in computing and granting endowment treatment.

Article 34 The endowment insurance treatment of retired employees shall be adjusted at July yearly. The specific adjusting rate shall be granted according to the total index of consuming price of town employees in the city in the previous years and the rising condition of monthly average wage of town employees by municipal social insurance administration.

Article 35 The basic endowment insurance fee of retired employees who enjoy endowment insurance treatment monthly shall expenditure from basic endowment insurance fund.

Article 36 Employees who were registered permanent residence in shenzhen can not enjoy monthly endowment treatment after retirement, even if they have reached the state age of retirement but not the time limit of payment. The sum of their individual insurance account shall be paid to themselves once, and the one lump living fees shall be paid from their basic endowment insurance fund.

The standard of one lump living fee: one month wage as to monthly average wage of town employees in the previous year when they retired for one year of time limit of payment.

Article 37 The sum of individual insurance account of employees shall be treated as following provision, if they were not registered permanent residence in shenzhen and have reached the state age of retirement but not the time limit of payment in these regulations or they were redeployed from the city before retirement:

(1)it shall be transferred to local social insurance administration if there are social insurance administration, and which shall be returned to employees themselves if the local social insurance administration refused it.

(2)it shall be returned to employees themselves if there no social insurance administration.
¡¡¡¡ Article 38 The sum of individual account shall be returned to employees themselves if they go abroad before retirement or settle down in Hongkong, Macao, or Taiwan.

Article 39 The sum of their individual account may be inherited if they died before retirement. The remaining in their individual account may be inherited if they died after retirement and there are remaining in it. And it shall be transferred to basic endowment insurance fund if there are no heir.

The sum of individual account shall be returned to employees themselves when they reach the state age of retirement, if they can enjoy monthly injure insurance treatment for business.
¡¡¡¡  Article 40 When employees died not for business before retirement or died after retirement, their funeral allowance and one lump pension shall be enjoyed by their supported direct lineal relatives.

The standard of funeral allowance and one lump pension is:

(1)the funeral allowance is two times of monthly average wage of town employees in the city in the previous year when they die.

(2)one lump pension is on the basis of monthly average wage of town employees in the city in the previous year when they died.        One lump pension is 5 times of that of above when the supported lineal relatives is only one. One lump pension is 8 times of that of above when the supported lineal relatives is two. One lump pension is 12 times of that of above when the supported lineal relatives is three.

Funeral allowance and one lump pension shall expenditure from basic endowment insurance fund.

Article 41 The granting of endowment money shall be socialized.

The retirees shall offer bank account to municipal social insurance administration when they conducting the receiving procedure of endowment money.

Municipal social insurance administration shall pay the endowment premium enough and timely.

Article 42 Relatives of retirees shall report to municipal social insurance administration in 30 days after they die.

¡¡¡¡Chapter ¢ô Supervision of Endowment Insurance

Article 43 The supervision administration of social insurance shall be made up of representative of government, enterprises, labor union and other department. And the representative of government shall not surpass a quarter in it.

The constitution, rights, rule of discussion of social insurance supervision administration shall be stipulated in its constitution, which shall be approved by municipal government.

The supervision administration of social insurance is in charge the implementation of laws, statutes, and regulations on endowment insurance and the supervision of the expense, use, management of fund.

Article 44 The municipal audit administration shall audit the income and expenses of endowment insurance fund regularly and yearly, and report the result to the municipal supervision of social insurance.

The municipal social insurance administration shall perfect the financial system and internal audit system on endowment insurance fund.

The municipal social insurance administration shall set up consultantation system on social insurance fees, facilitating enterprises and employees to consult the payment condition of insurance fees.
    Article 45 Enterprises and employees is entitled to consult the payment condition of endowment insurance fee or the payment condition of insurance treatment.

Article 46 Enterprises shall publicize the payment of endowment insurance premium half a year.

Employees may appeal to municipal social insurance administration or other departments, or apply arbitration of labor arbitration bureau directly, in 2 years when they know or shall know their rights were injured, if their employers delayed, cut down, or refuse in paying the endowment premium

Article 47 The municipal social insurance administration shall publicize the collection, payment, deposit, and operation condition of endowment insurance fund periodically and yearly.

Chapter ¢õ  Legal  Responsibility

Article 48 The municipal insurance administration shall send out a note when enterprises do not pay insurance premium as provisions, and the enterprises shall pay endowment insurance premium and overdue fines to the municipal insurance administration in 30 days after they receive the note. The overdue fines shall be computed at the rate of 2% of endowment insurance premium that they shall pay.

Article 49 The municipal insurance administration may order enterprises to improve if they hide the true amount of employees and wage as the base of pay insurance fee£¬do not conduct the registering of endowment insurance, do not provide relevant messages, violating these regulations. And if they do not improve in time limit, they shall pay a property penalty about 500000 yuan, and the direct leader in charge and the direct liable person shall pay a property penalty about between 10000 yuan and 30000 yuan.

Article 50 If enterprises and individual disrupt or obstacle the lawful enforcement of official affairs of municipal social insurance administration and its officers, they shall be settled according to 'the regulation of PRC on the management of public security' by public security bureau, and  be investigated criminal responsibility by judicial administration.

Article 51 The municipal social insurance administration shall recover the amount overdrawn and impose a fine equal to the amount they overdrawn if units overdraw endowment insurance treatments violating Article 42 in these regulations. Units shall be investigate criminal responsibility if they overdrew endowment treatment by the fraudulent means and which institute a crime.

Article 52 when any units or individual embezzle or occupy endowment insurance fund violating these regulations, its related officers in charge and direct liable persons shall be impose administrative punishment. And if which constitutes a crime, they shall be investigated criminal responsibility.

Article 53 Officers of the municipal social insurance administration who abuse rights, neglect of their post, ask bribery or take bribery, obtain personal interests while infringe public interests shall be imposed administrative punishments, and liable for loss caused to enterprises and their employees. And if constitutes crime they shall be investigated criminal responsibility by judicial organ.

Article 54 If the parties disaffected the note of payment, the punishment decision, the decision on insurance treatment computing of the municipal social insurance administration, they  may apply to the administrative review bureau of the municipal government for administrative review in 15 days after they receive those notes or decisions. If they disagree with the decision of administrative review, they may bring a lawsuit to the people' s court in 15 days after receiving the decision. The parties also may bring a lawsuit to the people' s court directly in 15 days after receiving the decision or note. If the party concerned does not apply for review or institute legal proceedings within the prescribed period of time, nor does it comply with the specific administrative decision, the municipal social insurance administration may apply to the people' s court for enforcement compulsorily.

¡¡¡¡ Chapter ¢ö  The Supplementary Provision

Article 55 The computing of total wage in these regulations shall according to relevant provision of state, and the monthly average wage of town employees in the whole city in the previous year shall refer to the amount publicecd by the municipal statistic department. The time limit of payment is the sum of the actual time limit of payment and the deemed time limit of payment. The deemed time limit of payment is the successive working age of employees formally admitted by state before they join the social insurance, if they are redeployed into the city with the approval of labor department and human department.

Article 56 The computing and sending out of the revolved monthly average wage of town employees in the whole city in the previous years shall on the basis of the monthly average wage in the whole city in the past two years in the former half of a year, and its computing and sending out shall on the basis of the monthly average wage in the whole city in the previous year in the later half of a year.

Article 57 The implementation of endowment insurance in Baogang District and Baogang District shall refer to these regulations. And these regulations shall adopt to the endowment insurance of town individual businesses and their employees too.

        Article 58 These regulations shall take effect as of Jan 1st, 1999.