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Social Welfare Structures

China’s economy has been growing rapidly and subsequently, Chinese society is undergoing a transition. The government is working to improve and restore the social welfare system in order to provide better support systems for the population, while at the same time stimulating consumerism as a key driver of the economy.

The welfare structure in China is comprised of the following components; Social Welfare & Housing Fund Registration, Alteration, and Deregistration. This system permits eligible Chinese and foreign staff in the workplace to contribute to the welfare state and is it regulated by the Ministry of Human Resources and Social Security (MOHRSS).  The MOHRSS regulate a welfare scheme consisting of Five Social Insurances: maternity, medical, pension, work-related injury, and unemployment insurances.

China’s social structure is undergoing change. Under the command economy, the welfare system was founded on enterprises in urban areas and communes in the countryside.

Social Welfare

A social welfare system embraces laws, programs, benefits and services to address the societal needs of a community.

Social welfare includes (applies to both Chinese and foreign staff):

  • Employee sign on and sign off
  • Daily maintenance
  • Pension liquidation (only apply to foreign staff)
  • Maternity insurance service
  • Commercial insurance

Housing Fund

The Housing Fund in China allows local Chinese employees to save in the purchase of their own home, whilst maintaining social security and stability. The employer will usually contribute between 7 percent and 13 percent of the employee’s salary to the purchase.

Housing fund includes (only applies to local Chinese staff)

  • Employee sign on/sign off
  • Daily maintenance
  • Housing fund withdrawal

How can LehmanBrown Help?

LehmanBrown ensures that sufficient resources are provided to help our clients create and maintain a healthy and compliant social welfare structure. Performance can be measured against standards to reveal when and where improvement is needed.

For more information on LehmanBrown’s Social Welfare Structures, please contact us at enquiries@lehmanbrown.com

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