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- 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”