In Chinese labor law, employers are required to make contributions for each employee to the government health insurance fund, which is used to provide basic medical coverage for individuals. A percentage amount must be contributed by both the employee and employer, into a health insurance fund comprised of two parts, a central fund and individual accounts. The health insurance fund provides direct payment and reimbursements for health insurance needs; contribution to the fund is mandatory and it is operated on a strictly not for profit basis. The fund’s managers are responsible for its financial management system, planning, auditing, and analysis, particularly as to inflows and outflows, and protecting the fund from theft or embezzlement.

Learn more about China’s social security requirements here.