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52

- Human Resources and Payroll in China 2016-2017 (5th Edition)

Mandatory Benefit Types

Maternity

Maternity leave is usually three months

and paternity leave is generally less than

15 days. In cities in which maternity in-

surance is applicable, during a period of

maternity or paternity leave, salary is not

required to be paid; rather, the employee

receives a fixed sum from this insurance

fund.

Pension

On the precondition that contributions

have been made for at least 15 years,

upon reaching retirement, an individual

can receive a pension based on the

amount accumulated in his/her individual

fund.

Medical

In the event of illness/injury, an employee

can have part of the treatment cost cov-

ered by medical insurance. Contributions

accrue to a card that can be used for phar-

macy or out-patient costs in government-

approved hospitals and clinics (excludes

international clinics).

Work-related Injury

The work-related injury fund covers

the cost of treatment should an

occupational injury occur. The employer

must pay some salary during the period

of rehabilitation and, if the employee

cannot return to work, compensation

must be paid.

Unemployment

In the event of redundancy (not in the

event an employee chooses to resign),

on the precondition that an employee

has contributed to unemployment for at

least one continuous year, the employee

may claim unemployment benefits for a

maximum of 24 months.

Housing Fund

Designed to ensure that workers save to

purchase housing. Money from this fund

can be used to pay the initial down-

payment on a house. In most cases, a

company determines the contribution

rate (within the legal range) when

opening its housing fund account.

= ”Five Social Insurances”