中国的社会保障基金

The latest social insurance law requires foreigners with work permits in the country to pay a monthly contribution for pension, medical, unemployment, worker injury and maternity insurance as of October 15th. Employers will deduct around 10 per cent of their salary to cover the workers' portion of the payment.
 
Their employers are required to pay an amount equaling 33% of their salary into the same account. In turn, the foreign workers will enjoy the same benefits as Chinese citizens do.

Yang Yansui, a public policy researcher at Tsinghua University, says the move is made to meet the requirement of the international law.

"The International Labor Organization Convention of 1952 clearly states that all countries should give foreign workers the same treatment and benefits as they do their own people."

Under the scheme, foreigners can withdraw their contributions from their social insurance accounts when they stop working in the country. They also have the option of keeping the funds intact if they leave the country and continuing the social security payments after they return to work in China.

After foreign workers make payments for a certain number of years accumulatively, they will be entitled to a pension when they retire, aged 60 for men; 55 for women. The pension will be generated by payments by both employees themselves and their employers.

Rakesh Vats, an Indian national, has been working in Beijing for 10 years. He says the program is a step forward in giving foreigners the same fair treatment as Chinese nationals receive.
　
But like many other foreign workers interviewed, Vats says the scheme puzzles him.

"Actually, this scheme is not very clear. It talks about your pension, your medical care, your other benefits, but it's not clear how it's going to benefit them."

Under current Chinese law, a foreigner who loses a job instantly loses the right to live in the country. But the new insurance program does not provide details about how workers can benefit from unemployment insurance under such circumstances.

Yang Yansui says the government must make more clarifications on such matters.

Xu Yanjun, an official with the Ministry of Human Resources and Social Security, says although the insurance scheme is mandatory, foreign workers from certain countries have the option of not joining the program.

"China has signed reciprocal exemption agreements on social insurance with Germany and the Republic of Korea. Under such agreements, nationals from those countries upon proving they have already paid for social insurance in their own countries, can be exempted from paying contributions for social insurance in China, but accordingly they will not receive benefits."

Analysts say this will prompt more countries to sign similar agreements with China in the near future.

For CRI, I'm Wu Jia.