In Chinese employment law, unemployment insurance is a mandatory social security benefit employers provide to employees, which is used to provide financial support to workers who have lost their jobs in order to meet their basic cost of living needs, while they look for work or retrain for another vocation.

The unemployment insurance fund is one of the government operated social security funds. Unemployment insurance is a universal benefit that covers both public and private sector workers in every region and industry.

Enrollment in unemployment insurance is mandatory for all employees under the law of China, and failure to make contributions exposes the employer to regulatory and legal liability. Employers, employees, and government each play a role in the administration of unemployment insurance, and employers have an obligation to make contributions and on termination notify the employee of their right to obtain benefits.

Learn more about social security obligations in China here.