The Social Insurance Law of the People's Republic of China (Social Insurance Law), adopted by the Standing Committee of the National People's Congress of the People's Republic of China on Oct. 28, 2010, will come into effect on July 1, 2011. To implement the Social Insurance Law, the Shanghai municipal government has issued several notices at the end of June 2011 (Implementation Notices).
Employees in Shanghai are currently enrolled in three different social insurance systems:
1. Social insurances for local urban residents with Shanghai Hukou1 (Urban Social Insurance);
2. Township social insurances for local rural residents with Shanghai Hukou (Township Social Insurance); and
3. Comprehensive insurances for non-local residents without Shanghai Hukou2 (Comprehensive Insurance).
The rates of insurance premiums and insurance benefits under each social insurance system are different. However, the Implementation Notices require that, upon the effectiveness of the Social Insurance Law, employees enrolled in the Township Social Insurance system and Comprehensive Insurance system should be transferred to the Urban Social Insurance system.
Please see full publication below for more information.
