China’s Social Security Act, translated by CBL into American English, makes enrolling every employee and paying contributions into a non-negotiable duty for employers. Under Chinese law, employers and managers alike face penalties and liability for non-payment or underpayment, with regulators empowered to order payment, pull funds directly from company bank accounts, and seek liens or judicial sales if violations persist.

To make aggressive enforcement worse, social security obligations can be very expensive, and it’s even easy to wind up overpaying on these obligations. As a result, local managers often cheat on these obligations in order to achieve short-term performance gains, and the company is severely penalized several years when later caught.

Therefore, understanding exactly how social security is calculated and the lawful way to process contributions is essential for businesses to avoid major civil penalties and even criminal sentences for non-compliance.

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Contents

• Ch. 1 Government Responsibilities
• Ch. 2 Retirement Insurance
• Ch. 3 Health Insurance
• Ch. 4 Workers’ Compensation
• Ch. 5 Unemployment Insurance
• Ch. 6 Maternity Insurance
• Ch. 7 Contributions
• Ch. 8 Fund
• Ch. 9 Administration
• Ch. 10 Oversight
• Ch. 11 Liability

Social Security Act of the People’s Republic of China

Chapter 1 General Provisions

Section 1 This Act is enacted under the Constitution to regulate social security practices, protect citizens’ right to enroll in social security programs and receive social security benefits, allow citizens to benefit from economic growth, and improve social harmony and stability.

Section 2 The central government shall establish social security programs covering retirement benefits, health insurance, workers’ compensation insurance, unemployment insurance, and maternity insurance to protect citizens’ rights to retirement benefits, medical benefits, workers’ compensation benefits, unemployment benefits, maternity benefits, and any other benefit provided under this Act.

Section 3 The social security programs shall provide broad coverage and universal protection, and be based on a comprehensive and sustainable approach. Benefit levels shall reflect prevailing socioeconomic conditions.

Section 4 Every employer and individual in the People’s Republic of China shall pay social security contributions as required by law and shall be entitled to request contribution and personal benefit records, as well as consultation and other public services from social security agencies.

An individual is entitled to inspect the records of contributions paid by their employer.

Section 5 Each county government and its parent agency shall include social security programs in its socioeconomic growth plans.

The central government shall finance social security programs from multiple funding sources. Each county government and its parent agency shall provide the necessary financial support for social security benefits.

The central government shall also support social security by offering tax incentives.

Section 6 The central government shall exercise strict oversight over social security funds.

The State Council and provincial, autonomous region, and home rule city governments shall establish and maintain a system to oversee and administer social security funds to ensure their secure and effective use.

County governments and their parent agencies shall encourage and support public participation in social security fund oversight.

Section 7 The cabinet-level social security regulator shall be responsible for administrating social security matters nationwide, and each cabinet-level agency shall be responsible for social security matters within its jurisdiction.

The county social security regulator and its parent agency shall be responsible for social security administration in their jurisdictions, and each county or parent agency shall be responsible for social security matters within its jurisdiction.

Section 8 A social security agency shall provide social security services and shall be responsible for social security filings, personal benefit records, and payment of social security benefits.

Section 9 A labor union shall protect employee rights pursuant to Chinese law, participate in major studies of social security matters, serve on the social security oversight committee, and oversee the administration of employee social security benefits.

Chapter 2 Retirement Insurance

Section 10 Every employee shall be enrolled in retirement insurance, and both the employer and employee shall pay the required contributions.

A family proprietorship with no employees, part-time worker not enrolled in retirement insurance through their employer, or gig worker may enroll in retirement insurance and directly pay in the required contributions.

Retirement insurance for civil servants and public administrators protected under the China Civil Service Act shall be subject to Chinese State Council requirements.

Section 11 Retirement insurance shall be funded through a combination of social security contributions and individual employee retirement accounts.

The retirement insurance fund consists of employer and employee contributions and government subsidies.

Section 12 An employer shall pay retirement insurance contributions into the retirement insurance trust fund in an amount proportional to the percentage of total employee wages pursuant to national law.

Employees shall pay retirement insurance contributions into the individual accounts in an amount proportional to the percentage of total employee wages, as specified by the central government.

A family proprietorship with no employees, part-time worker not enrolled in retirement insurance through their employer, or gig worker shall pay retirement insurance contributions to both the retirement insurance trust fund and their individual account pursuant to national law.

Section 13 The government shall pay the retirement insurance contributions owed for employees of Chinese state-owned enterprises and public institutions who were hired before the implementation of the national retirement insurance program.

The government shall cover any shortfalls if the retirement insurance fund is insufficient to pay benefits.

Section 14 No distribution may be made from an individual account before the account holder reaches the statutory retirement age. Interest credited to an individual account shall accrue at a rate no less than the national average deposit rate for certificates of deposit of comparable term, and shall be exempt from income tax. Any balance in an individual account may be passed through inheritance upon the individual’s passing.

Section 15 A retirement pension shall comprise benefits funded by the retirement trust fund and the individual account.

The retirement pension shall be calculated based on the years of covered contributions, the social security wage base, local average wages, individual account balances, and average urban life expectancy.

Section 16 A participant enrolled in retirement insurance who reaches the statutory retirement age and has paid contributions for a total of fifteen years shall be entitled to receive a monthly retirement pension.

A participant enrolled in retirement insurance who reaches the statutory retirement age with fewer than fifteen years of contributions may continue to pay contributions until completing fifteen years and will then receive a monthly retirement pension. Alternatively, the participant may enroll in the reformed rural resident or urban resident retirement insurance program and receive benefits pursuant to Chinese State Council regulations.

Section 17 Survivors of a deceased participant who dies from illness or another non-work-related cause are entitled to funeral assistance and survivors benefits. A participant who becomes totally disabled before reaching the statutory retirement age due to illness or a non-work-related injury is entitled to a disability allowance. All associated expenses shall be paid from the retirement insurance fund.

Section 18 The central government shall establish a system for regular retirement pension adjustments. Retirement benefits shall be increased appropriately to reflect increases in average employee wages and living costs.

Section 19 If a participant moves to work in another jurisdiction, the participant’s social security coverage shall transfer to the new location and all prior annual contributions shall carry forward and accrue. A participant’s pension shall be calculated as a single, aggregate benefit and paid in installments once the participant reaches the statutory retirement age. The State Council shall issue the specific calculation methods.

Section 20 The Chinese central government shall establish and maintain a new social security retirement pension for rural residents.

The reformed social security retirement pension for rural residents shall be funded through individual contributions, group benefits, and government subsidies.

Section 21 The reformed social security retirement pension for rural residents shall consist of a basic pension and an individual account pension.

A rural resident who is enrolled in the new social security retirement pension for rural residents and meets the eligibility requirements specified by the central government shall be entitled to receive a monthly pension under the program.

Section 22 The central government shall establish and maintain a social security retirement pension for urban residents.

Provincial, autonomous region, and home rule city governments may consolidate and administer the urban resident social security retirement pension and reformed social security retirement pension for rural residents as necessary.

Chapter 3 Health Insurance

Section 23 Every employee shall be enrolled in health insurance, and both the employer and employee shall pay the required contributions.

A family proprietorship with no employees, self-employed worker, part-time worker not enrolled in retirement insurance through their employer, or gig worker may enroll in health insurance and pay the required contributions directly pursuant to national regulations.

Section 24 The central government shall maintain and improve the reformed rural co-op health insurance program.

The Chinese State Council shall issue rules for the administration of the reformed rural co-op health insurance program.

Section 25 The central government shall establish and maintain a basic health insurance program for urban residents.

The basic health insurance program for urban residents shall be funded through individual contributions and government subsidies.

The government shall subsidize contributions otherwise payable by an individual who receives income support, is disabled and unable to work, is a senior citizen over sixty years of age, or is a minor from a low-income family.

Section 26 Benefit standards for the employee health insurance program, the reformed rural co-op health insurance program, and the basic health insurance program for urban residents shall comply with Chinese law.

Section 27 An employee shall no longer be required to make contributions for employee health insurance and shall continue to receive health insurance benefits pursuant to national law if the employee has reached the statutory retirement age and has paid contributions for the required number of years. An employee who reaches the statutory retirement age without completing the required years of contributions may continue making contributions until they meet eligibility requirements.

Section 28 The health insurance fund shall pay the cost of medications listed on the Basic Health Insurance Pharmaceutical List, items on the Treatment Options List, and expenses included in the Health Care Facility Standards, as well as emergency and rescue expenses pursuant to national law.

Section 29 The social security agency and appropriate healthcare or medical facility shall determine the portion of a participant’s medical expenses to be paid from the health insurance fund.

The social security regulator and health regulator shall implement out-of-area health care services claims coverage policies to facilitate access to medical insurance benefits by participants.

Section 30 The following medical expenses shall not be paid from the health insurance fund:

(a) Expenses that should be paid from the Workers’ Compensation Fund;

(b) Expenses that should be paid by a third party;

(c) Public health expenses; and

(d) Expenses for medical treatment outside Mainland China.

The health insurance fund shall advance any medical expenses owed by a third party liable for an employee’s medical expenses if such third party refuses to pay or cannot be identified. The third party shall remain liable to reimburse the health insurance fund in full for any advanced medical expenses.

Section 31 A social security agency may enter into a service contract with a healthcare organization or medical facility to oversee medical services as needed to facilitate the administration of such services.

A contracted healthcare organization shall provide reasonable and necessary healthcare services to any individual covered by basic health insurance.

Section 32 Social security coverage for a worker who moves to work in another jurisdiction shall transfer to the new location and all prior contributions shall carry forward and accrue.

Chapter 4 Workers’ Compensation

Section 33 Each employee shall be enrolled in workers’ compensation insurance, and the employer shall pay the required contributions. An employee shall not be required to pay workers’ compensation insurance contributions.

Section 34 The central government shall determine contribution differentials for each industry based on the degree of risk for work-related injuries. Tiered contributions shall be determined based on utilization of the Workers’ Compensation Fund and frequency of work-related injuries in each industry. The cabinet-level social security regulator shall set contribution rates and tiered contribution structures for each industry, and submit them to the State Council for approval before implementation.

The social security agency shall set contribution rates for each employer based on the employer’s use of the Chinese Workers’ Compensation Fund, the frequency of work-related injuries, and applicable industry rates.

Section 35 An employer shall pay workers’ compensation contributions based on the total wages of its employees and the rates set by the social security agency.

Section 36 An employee who sustains a verified work-related injury or occupational illness shall be eligible to receive workers’ compensation benefits. An employee determined to have lost their capacity to work through a disability evaluation shall be eligible to receive disability benefits.

The workers’ compensation claims and disability evaluation processes shall be streamlined and accessible.

Section 37 An employee who is injured or dies at work due to any of the following events shall not be considered to have sustained a work-related injury:

(a) Intentional criminal conduct;

(b) Intoxication or drug abuse;

(c) Self-inflicted injury or suicide; or

(d) Any other event specified in applicable laws or administrative regulations.

Section 38 The following expenses resulting from a work-related injury shall be paid from the workers’ compensation fund pursuant to Chinese law:

(a) Medial expenses for treatment and rehabilitation of a work-related injury;

(b) Hospital meal allowances;

(c) Transportation, accommodation, and meal costs for out-of-area medical treatment;

(d) Costs for installing assistive devices;

(e) Live-in care expenses approved by the disability evaluation commission for individuals unable to care for themselves;

(f) Lump-sum disability benefits and monthly disability allowances for employees with level one to four disabilities;

(g) Lump-sum medical subsidies payable upon termination or cancellation of the employment contract;

(h) Funeral subsidies, survivors benefits, and occupational death benefits for eligible beneficiaries; and

(i) Disability evaluation costs.

Section 39 The following expenses resulting from a work-related injury shall be paid by the employer pursuant to Chinese regulations:

(a) Wages and benefits during the treatment period;

(b) Monthly disability benefits for employees with level 5 or level 6 disabilities; and

(c) Lump-sum disability benefits payable upon termination or cancellation of the employment contract.

Section 40 An injured worker who becomes eligible for retirement benefits shall no longer receive disability benefits and shall instead receive retirement benefits. If the retirement benefit is less than the disability benefit, the difference shall be paid from the worker’s compensation fund.

Section 41 An employer that fails to pay workers’ compensation contributions as required by law shall be liable for workers’ compensation benefits arising from any work-related injury. Benefits shall be advanced from the workers’ compensation fund if the employer refuses to pay.

The employer shall reimburse the workers’ compensation fund for any benefits advanced. The social security agency shall enforce reimbursement under § 63 of this Act against any employer that fails to repay benefits advanced.

Section 42 Medical expenses owed by a third party liable for a work-related injury shall be paid in advance from the workers’ compensation fund if such third party refuses to pay or cannot be identified. The third party shall remain liable to reimburse the workers’ compensation fund for any payments advanced.

Section 43 An employee who has sustained a work-related injury shall stop receiving workers’ compensation benefits if the employee:

(a) Becomes ineligible;

(b) Refuses to comply with a disability evaluation; or

(c) Refuses treatment.

Chapter 5 Unemployment Insurance

Section 44 Every employee shall be enrolled in unemployment insurance, and both the employer and the employee shall pay the required contributions pursuant to Chinese law.

Section 45 An unemployed worker is eligible for unemployment benefits paid from the unemployment insurance fund if:

(a) The worker and their former employer have made unemployment insurance contributions for at least one year before the unemployment;

(b) The worker is involuntarily unemployed; or

(c) The worker has registered for unemployment benefits and is required to seek employment.

Section 46 Unemployment insurance benefits shall be payable for a maximum of 12 months if the worker and their former employer paid unemployment insurance contributions for at least 1 but less than 5 consecutive years before the unemployment; 18 months if they paid contributions for at least 5 but less than 10 consecutive years; and 24 months if they paid contributions for 10 or more consecutive years. A worker’s contribution period shall be recalculated if the worker becomes unemployed after re-employment. The worker’s new unemployment insurance benefit period shall include any unused months of benefits previously available, provided the total entitlement from all periods does not exceed 24 months.

Section 47 Each Chinese provincial, autonomous region, and home rule city government shall set local unemployment insurance benefit levels at no less than the local poverty threshold for urban residents.

Section 48 An unemployed worker who receives unemployment insurance benefits shall remain enrolled in the employee health insurance program and continue to be eligible for health insurance benefits during the unemployment insurance benefit period.

Health insurance contributions payable by an unemployed worker shall be paid from the unemployment insurance fund, and the unemployed worker shall not be required to pay health insurance contributions.

Section 49 A survivor of a deceased unemployed worker who dies while receiving unemployment insurance benefits shall be entitled to a one-time funeral assistance payment and survivors benefits pursuant to local regulations governing occupational deaths. All associated expenses shall be paid from the unemployment insurance fund.

A survivor of a deceased unemployed worker who dies while eligible for retirement insurance funeral assistance, workers’ compensation funeral assistance, or unemployment insurance funeral assistance shall only be entitled to only one of those benefits.

Section 50 An employer shall promptly issue written proof of the termination or cancellation of the employment contract to the former employee and notify the appropriate Chinese social security agency of the employee’s unemployment within 15 days after the termination or cancellation of the employment contract.

An unemployed worker shall register their unemployment with the designated employment services agency by submitting documentation from the former employer confirming the termination or cancellation of the employment contract.

An unemployed worker may apply for unemployment insurance benefits by registering with the appropriate Chinese social security agency and submitting identification documents and an unemployment certificate. The unemployment insurance benefit period shall begin on the worker’s unemployment registration date.

Section 51 An unemployed worker shall stop receiving unemployment insurance benefits and any other unemployment payments if any of the following events occurs during the unemployment insurance benefit period:

(a) The unemployed worker is re-employed;

(b) The unemployed worker is conscripted for military service;

(c) The unemployed worker relocates abroad;

(d) The unemployed worker begins to receive statutory retirement benefits; or

(e) The unemployed worker refuses to accept suitable employment or training offered by the agency or by an organization designated by the local government without a valid reason.

Section 52 Unemployment insurance coverage for a worker who moves to work in another jurisdiction shall transfer to the new location and all prior contributions shall carry forward and accrue.

Chapter 6 Maternity Insurance

Section 53 Each employee shall be enrolled in maternity insurance, and the employer shall pay the required contributions. An employee shall not be required to pay maternity insurance contributions.

Section 54 An employee is entitled to maternity insurance benefits when the employer has paid the required maternity insurance contributions. The unemployed spouse of a covered employee shall receive maternity medical benefits pursuant to law. All associated expenses shall be paid from the maternity insurance fund.

Maternity insurance benefits include maternity medical expenses and other maternity benefits.

Section 55 Maternity medical expenses include:

(a) Childbirth medical expenses;

(b) Family planning medical expenses; and

(c) Any other medical expenses provided by law.

Section 56 A woman employee shall receive maternity benefits pursuant to Chinese law when:

(a) the employee is on maternity leave;

(b) the employee is on family planning leave; or

(c) Any other event provided by applicable law.

Maternity benefits shall be calculated based on the average monthly wages paid by the employer during the previous year.

Chapter 7 Collection of Social Security Contributions

Section 57 An employer shall register with the local social security agency and submit its business license, registration certificate, or corporate seal within 30 days after formation. The social security agency shall review the registration and issue a social security registration certificate within 15 days after receipt.

An employer shall register any changes to its social security registration or its lawful termination with the social security agency within 30 days after the change or termination.

A business regulator, civil agency, or organization and central administration office shall promptly report each employer’s formation or termination to the social security agency. A law enforcement agency shall promptly report each birth, death, and household registration, transfer, or cancellation.

Section 58 An employer shall enroll each employee in social security with the social security agency within 30 days after the employee’s employment date. The social security agency shall determine the amount of contributions an employer owes if the employer fails to enroll an employee in social security.

A family proprietorship with no employees, part-time worker not enrolled in social security through their employer, or gig worker that voluntarily enrolls in social security shall complete the social security filings with the social security agency.

The Chinese central government shall establish a national system for assigning standardized social security numbers. A worker’s identification card number shall serve as their social security number.

Section 59 The county government and its parent agency shall improve the administration and collection of social security contributions.

Social security contributions shall be centrally collected pursuant to Chinese State Council rules and methods.

Section 60 An employer shall report and pay social security contributions in full and on time and may not delay or reduce payment except when attributable to force majeure. An employer shall deduct an employee’s share of social security contributions from the employee’s wages and pay the amount on the employee’s behalf. The employer shall notify the employee of the details of each monthly social security contribution.

A family proprietorship with no employees, part-time worker not enrolled in social security insurance through their employer, or gig worker may directly pay in the required contributions to social security collection agency.

Section 61 A social security collection agency shall collect social security contributions promptly and in full as required by law and shall regularly provide employers and employees with contribution details.

Section 62 An employer that fails to report the required social security contribution pursuant to Chinese law shall pay 110% of the contribution paid in the preceding month. The social security administrative agency shall finalize the correction after the employer submits the missing report.

Section 63 The social security collection agency shall order an employer that fails to pay the required contribution in full and on time to pay or make up the outstanding contribution by a specified deadline.

The social security collection agency may request account information from the employer’s bank or other financial institution, request the appropriate county administrative agency or its parent agency enforce payment of the social security contribution, and send written notice to the bank or financial institution to disburse the required social security contribution from the employer’s account if the employer fails to pay or make up the outstanding contribution by the specified deadline. The social security collection agency shall require an employer provide a bond and enter into a deferred payment agreement if the employer’s account balance is less than the amount owed in social security contributions.

The social security collection agency may petition a court for seizure, a lien, or a judicial sale of the employer’s assets in an amount equal to the unpaid social security contributions if the employer fails to pay social security contributions in full and has not provided security. The proceeds of any judicial sale shall be applied to the unpaid social security contributions.

Chapter 8 Social Security Fund

Section 64 The Chinese social security fund consists of the retirement insurance fund, health insurance fund, workers’ compensation fund, unemployment insurance fund, and maternity insurance fund. The health insurance fund and the maternity insurance fund shall be combined and accounted for together, and all other social security funds shall be accounted for separately. Fund accounting shall comply with national accounting standards.

The social security fund is restricted for specific purposes, and no organization or individual shall misappropriate or embezzle it.

The retirement insurance fund shall be implemented at the national level, and other social security funds shall be implemented at the provincial level. The State Council shall specify the implementation schedule and methods.

Section 65 The social security fund shall balance revenues and expenditures through the budget.

The county government and its parent agency shall subsidize any shortfall when the social security fund is insufficient to pay benefits.

Section 66 The social security fund shall implement a budget in line with the social security fund distribution framework. A separate budget shall be prepared for each fund category, except for the consolidated budget for the health insurance fund and the maternity insurance fund.

Section 67 The preparation, review, and approval of the draft social security fund  budget and final accounts shall comply with applicable Chinese laws and State Council regulations.

Section 68 The social security fund shall be held in a dedicated account, and the State Council shall issue specific procedures for its administration.

Section 69 The social security fund shall be invested and operated with a focus on protecting principal, preserving value, and prudent growth pursuant to State Council regulations.

The social security fund shall not be unlawfully invested or operated, or used to balance other government budgets, to finance the construction or renovation of offices, to pay staff, operating, or administrative expenses, or for any purpose not authorized by law or administrative regulations.

Section 70 The social security agency shall make regular public disclosures on social security enrollment and on the income, expenditures, balances, and investment earnings of the social security fund.

Section 71 The central government shall establish a national social security fund made up of appropriations from the national budget and other sources authorized by the State Council to supplement and balance social security expenditures. The national social security fund administration and operation agency shall administer, operate, and protect the fund, preserve its value, and facilitate conservative growth.

The national social security fund shall regularly publicly disclose its income, expenditures, administration, and investment practices. The Cabinet-level finance regulator, cabinet-level social security administrative agency, and cabinet-level auditing agency shall oversee national social security fund income and expenditures, administration, and investment practices.

Chapter 9 Administration of Social Security

Section 72 A social security agency shall be established for each jurisdiction. A social security agency may set up local offices and service offices within its jurisdiction as needed and as authorized by the local social security regulator and central organization and administration office.

Social security agency staffing, operating, and administrative expenses shall be paid from local funding pursuant to Chinese law.

Section 73 The social security agency shall create and maintain business, financial, and risk management systems.

The social security agency shall pay social security benefits in full and on time.

Section 74 The social security agency shall obtain necessary social security data through its work, statistics, and research. Employers and individuals shall promptly and truthfully provide any required data.

The social security agency shall promptly create employer files and maintain complete and accurate records of each individual’s social security enrollment, and contribution. The social security agency shall retain original registration and reporting document and accounting receipts.

The social security agency shall maintain complete and accurate records of each enrolled individual’s social security contributions, employer contributions made for the individual, and the individual’s benefits and entitlements. The agency shall regularly provide entitlement statements to enrolled individuals at no charge.

Employers and individuals may inquire and verify contribution and benefit records with the social security agency at no charge, and may request social security advice and other services.

Section 75 County governments and parent agencies shall jointly develop the national social security information system in compliance with the principle of tiered responsibility and national planning.

Chapter 10 Social Security Oversight

Section 76 Standing Committees of the National People’s Congress shall inquire into and review local government reports on social security fund income and expenditures, administration, investment and operations, and oversight, shall organize compliance reviews under this Act, and shall exercise oversight authority as required by law.

Section 77 Each county social security administrative agency and its parent agency shall improve oversight and inspection of employer and individual compliance with Chinese social security law.

The social security administrative agency shall conduct oversight and inspections. An employer or individual subject to social security administrative agency oversight and inspections shall provide the required social security information truthfully and shall not refuse inspection, submit false information, or conceal information.

Section 78 The finance agency and the auditing agency shall oversee Chinese social security fund revenue, expenditures, administration, and investment activities to the extent of their authority.

Section 79 The social security administrative agency shall oversee and inspect social security fund income and expenditures, administration, and investment practices. The social security administrative agency shall order corrective action, issue an enforcement order, or refer the matter to the appropriate administrative agency if any discrepancies are found. The agency shall make regular public disclosures of inspection results.

The social security administrative agency is authorized to take the following actions while conducting oversight and inspection of the social security fund:

(a) Request, record, and copy social security fund income and expenditure, administration, and investment records, and seal any materials at risk of transfer, concealment, or loss;

(b) Interview employers and individuals involved in inspection matters and require explanations and supporting documentation; and

(c) Order the cessation and correction of acts that conceal, transfer, embezzle, or misappropriate social security funds.

Section 80 Each local government shall set up a social security oversight board made up of employer representatives, participant representatives, labor union representatives, and subject-matter experts for its jurisdiction. The oversight board shall examine and analyze social security fund income, expenditures, administration, and investment practices, and shall provide advice and recommendations on social security and public oversight matters.

The appropriate China social security agency shall regularly disclose social security fund income, expenditures, administration, and investment practices to the social security oversight board. The social security oversight committee may hire an accounting firm to for annual and ad hoc audits of the social security fund’s income and expenditures, administration, and investments. Audit results shall be publicly disclosed.

The social security oversight committee may recommend corrections to address discrepancies in the social security fund’s income and expenditures, administration, and investments. The committee may refer any violation by the social security agency or its employees to the appropriate agencies for enforcement and recommend corrective action.

Section 81 The social security administrative agency, social security agency, social security collection agency, other appropriate agencies, and their employees shall keep employer and individual information confidentiality and shall not disclose it in any form.

Section 82 Any organization or individual may report or file a complaint against any violation of Chinese social security law.

The social security administrative agency, the health administrative agency, the social security agency, the social security collection agency, finance agencies, and auditing agencies shall resolve reports and complaints within their jurisdictions as provided by law, and shall transfer matters outside their jurisdiction to the jurisdictional agency with written notice. The jurisdictional agency shall address all transferred reports and complaints promptly and shall not evade them.

Section 83 An employer or individual that alleges a violation of rights by a social security collection agency may seek administrative review or file an administrative appeal pursuant to Chinese law.

An employer or an individual may seek administrative review or file an administrative appeal against a social security agency that fails to process social security registration, verify social security contributions, pay social security benefits, transfer social security records, or otherwise violates social security rights pursuant to law.

An individual involved in a dispute over social security with an employer may request mediation or arbitration, or file a civil action pursuant to law. An individual may also request the social security administrative agency or the social security collection agency to address an employer’s violation of the individual’s social security rights pursuant to law.

Chapter 11 Liability

Section 84 The social security administrative agency shall order an employer that fails to enroll an employee in social security to correct the violation by a specified deadline. An employer that fails to correct the violation by the deadline shall be subject to a penalty of one to three times the unpaid social security contributions, and the directly responsible manager and other directly responsible persons shall be subject to a penalty of 500 to 3,000 yuan.

Section 85 An employer that refuses to issue proof of termination or cancellation of an employment relationship shall be penalized under the China Employment Contract Act.

Section 86 The social security collection agency shall order an employer that fails to pay security contributions in full and on time to pay or make up the missing contribution by a specified deadline. The agency shall charge a late fee of 0.05% of the unpaid contributions per day from the date of nonpayment. The appropriate administrative agency may impose a penalty of one to three times the amount owed if the employer fails to meet the deadline.

Section 87 The social security administrative agency shall order a social security agency, healthcare organization or medical facility that obtains social security funds by fraud, falsified documentation, or unlawful means to return the funds and shall impose a penalty of at least double to five times the unlawfully obtained amount. The social security administrative agency shall terminate any service agreement with the social security service provider and revoke the professional qualifications of the directly responsible directors and other directly responsible persons pursuant to law.

Section 88 The social security administrative agency shall order an individual who obtains social security benefits by fraud or falsified documents to repay the full amount and to pay a penalty of two to five times the amount obtained.

Section 89 The social security administrative agency shall order the social security agency and its employees to correct any of the following violations, shall require the social security agency and its employees to indemnify the social security fund and any affected employers or individuals for resulting losses, and shall impose disciplinary action on the directly responsible directors and other directly responsible persons pursuant to Chinese law:

(a) Fails to perform legally required social security duties;

(b) Fails to maintain the social security fund in a dedicated account;

(c) Makes unlawful deductions to or delays social security benefits;

(d) Loses or alters social security records, such as contribution records, entitlement records, or individual benefit records; or

(e) Otherwise violates Chinese social security law.

Section 90 The appropriate social security administrative agency shall order recovery of underpaid contributions or refund of overpaid contributions if the social security collection agency makes unauthorized social security contribution base or rate resulting in undercollection or overcollection. The social security administrative agency shall impose disciplinary action on the directly responsible directors and other directly responsible persons pursuant to Chinese law.

Section 91 The social security administrative agency, the finance agency, or the audit agency shall order an individual or entity that conceals, transfers, misappropriates, embezzles, or unlawfully invests social security funds to return the funds and disgorge any illegal proceeds. The social security administrative agency shall impose disciplinary action on the directly responsible directors and other directly responsible persons pursuant to Chinese law.

Section 92 A directly responsible director or employee of a social security administrative agency, other administrative agency, social security agency, or social security collection agency shall be subject to disciplinary action pursuant to law and shall indemnify an affected employer or individual for losses resulting from a failure to maintain the confidentiality of employer or individual personal data.

Section 93 A government employee shall be punished pursuant to law for abuse of authority, negligence, or any professional malfeasance for personal gain while performing duties related to social security administration or oversight.

Section 94 A violation of this Act that constitutes a crime shall be prosecuted to the full extent of law.

Chapter 12 Miscellaneous

Section 95 A rural resident who relocates to a city for work shall be enrolled in social security pursuant to this Act.

Section 96 A government that exercises eminent domain power on collectively owned rural land shall enroll all farm owners subject to the eminent domain in social security and pay the full amount of required social security contributions pursuant to State Council regulations.

Section 97 A foreign national employed in mainland China shall be enrolled in social security pursuant to this Act.

Section 98 This Act shall take effect on July 1, 2011.

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See CBL’s China Employment & Labor Law FAQ to learn more about how to succeed in China’s labor markets.

This act was translated to American English from the following government publication:

“中华人民共和国社会保险法”

https://flk.npc.gov.cn/detail?id=ff8080816f135f46016f210989b9179a&fileId=&type=&title=中华人民共和国社会保险法