(Adopted at the 13th Executive Meeting of the State Council on January 14, 1999 and promulgated by Decree No. 259 of the State Council of the People's Republic of China on January 22, 1999)

Chapter I General Provisions

Article 1 These Regulations are formulated with a view to strengthening and standardizing the collection and payment of social insurance premiums, and ensuring the grant of social insurance money.

Article 2 These Regulations shall be applicable to the collection and payment of basic old-age insurance premiums, basic medical insurance premiums and unemployment insurance premiums(hereinafter collectively referred to as social insurance premiums).

Units and individuals that are obligated to pay premiums referred to in these Regulations mean the units and individuals pursuant to the provisions of relevant laws, administrative regulations and the State Council that should pay social insurance premiums.

Article 3 The scope of collection and payment of basic old-age insurance premiums: state-owned enterprises, collective enterprises in cities and towns, enterprises with foreign investment, private enterprises in cities and towns and other enterprises in cities and towns and their staff members and workers as well as the institutions practicing enterprise management and their staff members and workers.

The scope of collection and payment of basic medical insurance premiums: state-owned enterprises, collective enterprises in cities and towns, enterprises with foreign investment, private enterprises in cities and towns and other enterprises in cities and towns and their staff members and workers, state organs and their functionaries, institutions and their staff members and workers, mass-run non-enterprise units and their staff members and workers as well as social organizations and their full-time workers.

The scope of collection and payment of unemployment insurance premiums: state-owned enterprises, collective enterprises in cities and towns, enterprises with foreign investment, private enterprises in cities and towns, other enterprises in cities and towns and their staff members and workers as well as institutions and their staff members and workers.

The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may, in the light of actual local conditions, stipulate to bring individual units of industry and commerce in cities and towns into the scope of basic old-age insurance, basic medical insurance, and may stipulate to bring social organizations and their full-time staff members, mass-run non-enterprise units and their staff members and workers as well as individual units of industry and commerce in cities and towns with employees and their employees into the scope of unemployment insurance.

The rate base and rate of social insurance premiums shall be governed by the provisions of relevant laws, administrative regulations and stipulations of the State Council.

Article 4 Units and individuals that are obligated to pay premiums should pay social insurance premiums sufficiently and on schedule.

Where the social insurance premiums levied and paid should be brought into social insurance funds, the funds maybe used for its specified purpose only. No units or individuals may peculate.

Article 5 The administrative department of labor security under the State Council shall be in charge of the work concerning management, supervision and by inspection of the collection and payment of social insurance premiums nationwide. The administrative departments of labor security under the local people's governments at different levels above county level are in charge of the management, supervision and inspection of social insurance premiums in their respective administrative areas.

Article 6 Concentrated and unified collection of the three kinds of social insurance premiums shall be practised for social insurance premiums. Where the bodies collecting social insurance premiums shall be stipulated by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government, tax authorities may collect and the bodies handling social insurance set up by the administrative departments of labor security (hereinafter referred to as bodies handling social insurance for abbreviation) in accordance with the stipulations of the State Council may also collect.

Chapter II Collection and Payment Management

Article 7 The units that are obligated to pay premiums must apply to the local bodies handling social insurance for social insurance registration and join social insurance.

Particulars for registration include: the name of unit, address, the place for management, type of unit, legal representative or person in charge, number of a bank account as well as the other matters stipulated by administrative department of labor security under the State Council.

Article 8 The units that are obligated to pay premiums which have joined social insurance before the enforcement of these Regulations should apply to the local bodies handling social insurance for going through social insurance registration retrospectively within 6 months as of the date of enforcement of these Regulations. The bodies handling social insurance shall issue the certificates of social insurance registration.

Where the units that are obligated to pay premiums which have not joined social insurance before the enforcement of these Regulations should within 30 days as of the date of enforcement of these Regulations, the units which were set up after the enforcement of these Regulations should within 30 days as of the date of setting up apply to the local bodies handling social insurance for social insurance registration on presentation of the relevant documents such as business licenses or registration certificates. Upon examination and verification of these documents, the bodies handling social insurance shall issue the social insurance registration certificates.

The social insurance registration certificates shall not be forged and altered.

The format of social insurance registration certificate shall be defined by the administrative department of labor security under the State Council.

Article 9 A unit that is obligated to pay premiums shall, where any change occurs in the contents of social insurance registration matters, within 30 days as of the date of occurrence or a unit that is obligated to pay premiums terminates shall within 30 days as of the date of termination, apply to the body handling social insurance for the change or cancellation of social insurance registration.

Article 10 Where the units that are obligated to pay premiums must file declarations on the amount of social insurance premiums payable on a monthly basis, they shall pay social insurance premiums within the specified time period upon verification by bodies handling social insurance.

Where the units that are obligated to pay premiums fail to file declarations on the amount of social insurance premiums payable in accordance with stipulations, the bodies handling social insurance shall define the amount payable temporarily in accordance with 110 percent of the amount paid by the unit in the preceding month. Where the amount paid in the preceding month is not available, the bodies handling social insurance shall temporarily define the amount payable in accordance with the relevant circumstances, such as the state of management, number of staff members and workers. Where the units that are obligated to pay premiums have applied for supplementary procedures and paid social insurance premiums in accordance with the verified amount, the bodies handling social insurance will settle accounts in accordance with the stipulations.

Article 11 Where the people's governments of provinces, autonomous regions and municipalities directly under the Central Government stipulate that tax authorities are in charge of social insurance premiums collection, the bodies handling social insurance should furnish tax authorities in time with such information as the social insurance registrations, change in registration or cancellation of registration and the state of declarations on payment of units that are obligated to pay premiums.

Article 12 The units and individuals that are obligated to pay premiums should pay social insurance premiums in full in the form of currency.

The social insurance premiums which individuals are obligated to pay shall be withheld from the individuals' wage by the employer units.

There shall be no reduction for and exemption from social insurance premiums.

Article 13 Where the units that are obligated to pay premiums fail to pay or withhold social insurance premiums according to the stipulations, the administrative departments of labor security or tax authorities shall order the payers to pay the funds within a specified period of time, impose on those that fail to effect payment on expiry of the specified time period a surcharge on a daily basis at the rate of 0.2 percent of the amount of premiums in arrears, commencing on the day that payment is in default. The surcharge should be brought into social insurance funds.

Article 14 The social insurance premiums levied and collected shall be lodged in the financial accounts of social security funds in state-owned commercial banks opened by financial departments.

Social insurance funds will set up basic old-age insurance funds, basic medical insurance funds as well as unemployment insurance funds separately in accordance with the overall planning scope of different kinds of insurance. Each kind of social insurance funds shall be accounted separately.

Social insurance funds shall be exempt from tax collection and fee collection.

Article 15 Where the people's governments of provinces, autonomous regions and municipalities directly under the Central Government stipulate that tax authorities are in charge of social insurance premiums collection, tax authorities should furnish the bodies handling social insurance with the information concerning the payment of premiums by units and individuals that are obligated to pay. The bodies handling social insurance should present an itemized report to the administrative departments of labor security.

Article 16 The bodies handling social insurance should take notes of premium payment, among them, basic old-age insurance, basic medical insurance should be taken notes of individual accounts in accordance with stipulations. The bodies handling social insurance is in charge of preserving notes of premium payment and ensure that they are intact and safe. The bodies handling social insurance should dispatch notices concerning individual accounts of basic old-age insurance and basic medical insurance to individuals that are obligated to pay premiums at least once every year.

The units and individuals that are obligated to pay premiums have the right to inquire into payment notes in accordance with stipulations.

Chapter III Supervision and Inspection

Article 17 The units that are obligated to pay premiums should make public the state of social insurance premium payment throughout the year to their staff members and workers every year and receive their supervision.

The bodies handling social insurance should make an announcement at regular internals on the state of social insurance premium collection in society and accept the supervision of society.

Article 18 In accordance with the stipulations of the people's governments of provinces, autonomous regions and municipalities directly under the Central government with regard to the bodies handling the collection of social insurance premiums, where the administrative departments of labor security or tax authorities check on the state of premium payment by units in accordance with law, the units under inspection should furnish the relevant information on the payment of social insurance premiums, such as employee information, payroll sheets, financial statements, and report the particulars truth-fully, and shall not refuse to be inspected, shall not make false reports or conceal any facts. The administrative departments of labor security or tax authorities may take notes, tape-recordings, video-recordings, photographing and duplications of the relevant particulars and information pertaining to the case, but shall have the duty to keep confidentiality for the units that are obligated to pay premiums.

When exercising the powers listed in the preceding paragraph, the functionaries of the administrative departments of labor security and tax authorities shall produce certificates for the execution of official business.

Article 19 Where the administrative departments of labor security or tax authorities investigate a case concerning violation of laws on the collection and payment of social insurance premiums, the departments and units concerned shall give support and assistance.

Article 20 Entrusted by the administrative departments of labor security, the bodies handling social insurance may carry on the work of inspection and investigation with regard to the collection and payment of social insurance premiums.

Article 21 Any organizations and individuals have the right to inform against the acts concerning collection and payment of social insurance premiums. The administrative departments of labor security or tax authorities should investigate the accusation in time and deal with the case in accordance with stipulations and keep confidentiality for informants.

Article 22 Social insurance funds shall be managed through two lines of revenue and expenditure and be supervised by financial departments according to law.

Auditing departments shall supervise the state concerning revenue and expenditure of social insurance funds in accordance with law.

Chapter IV Penalty Provisions

Article 23 Where the units that are obligated to pay premiums fail to apply for social insurance registration, change in or cancellation of registration in accordance stipulations, or fail to file a declaration on the amount of social insurance premiums payable in accordance with stipulations, the administrative departments of labor security shall order the payers to rectify within a specified period of time; where the circumstances are serious, a fine of more than RMB 1000 Yuan less than RMB 5000 Yuan shall be imposed on the person-in-charge directly responsible and other persons directly responsible; where the circumstances are extremely serious, a fine of more than RMB 5000 Yuan less than RMB 10000 Yuan shall be imposed on the person-in-charge directly responsible and other persons directly responsible.

Article 24 The units that are obligated to pay premiums forge, alter and deliberately destroy the accounting books, materials or do not establish the accounting books in violation of the relevant laws and administrative regulations and the relevant stipulations of the state resulting in inability to determine the base number of payment concerning social insurance premiums shall, in addition to being subjected to administrative sanctions, disciplinary sanctions and criminal sanctions in accordance with the relevant provisions of laws and administrative regulations, effect payment according to the provisions of Article 10 of these Regulations; where a payer delays the payment, a surcharge shall be imposed by the administrative department of labor security or tax authority according to the provisions of Article 13 of these Regulations, and a fine of more than RMB 2000 Yuan less than RMB 5000 Yuan shall be imposed on the person-in-charge directly responsible and other person directly responsible.

Article 25 Where the units and individuals that are obligated to pay premiums refuse to obey the sanction decision by the administrative departments of labor security or tax authorities, they may apply for reconsideration according to law; if they refuse to obey the decision made after reconsideration, they may institute legal proceedings according to law.

Article 26 Where the units that are obligated to pay premiums refuse to pay social insurance premiums and surcharge on expiry of the specified time period, the administrative departments of labor security or tax authorities shall apply to the people's court for mandatory levying and payment.

Article 27 Where functionaries of administrative departments of labor security, bodies handling social insurance or tax authorities abuse their powers, commit malpractices for selfish gains and neglect their duties resulting in the drain of social insurance premiums, the administrative departments of labor security or tax authorities shall recover the social insurance premiums drained. Where a crime has been constituted, criminal liability shall be investigated according to law; where a crime has not been constituted, administrative sanctions shall be imposed according to law.

Article 28 Where any units or individuals divert social insurance funds, the social insurance funds diverted shall be recovered. Where there are illegal gains, they should be confiscated and brought into social insurance funds; where a crime has been constituted, criminal liability shall be investigated according to law; where a crime has not been contituted, administrative sanctions shall be imposed on the person-in charge directly responsible and other persons directly responsible.

Chapter V Supplementary Provisions

Article 29 The people's governments of provinces, autonomous regions and municipalities directly under the Central Government may, in the light of actual local conditions, decide that these Regulations may be applicable to the collection and payment concerning industrial injury insurance premiums and child-bearing insurance premiums in their respective administrative areas.

Article 30 Where tax authorities, bodies handling social insurance collect social insurance premiums, they may not draw any fee from social insurance funds. The expenses they need shall be listed into budget and appropriated by finance.

Article 31 These Regulations shall be effective as of the date of promulgation.