MEASURES CONCERNING OLD-AGE INSURANCE FOR CHINESE
EMPLOYEES OF SINO-FOREIGN (JOINT EQUITY ENTERPRISES) IN
SHANGHAI MUNICIPALITY (TRIAL IMPLEMENTATION)

(Issued 17, May 1986 by the Shanghai Municipal
People's Government)

 

SUBJECT: EQUITY JOINT VENTURES

ISSUING-DEPT: SHANGHAI MUNICIPALITY

ISSUE-DATE:

05/17/1986

IMPLEMENT-DATE:

06/01/1986

LENGTH: 736 words

TEXT:

[Article 1] These Measures are formulated in accordance with the Regulations of the People's Republic of China on Labour Management in Sino-foreign joint Equity Enterprises and the relevant regulations of Shanghai Municipality.

[Article 2] All Shanghai-based Sino-foreign equity joint Equity Enterprises hereinafter referred to as joint equity enterprises shall, from the day of their approval, implement procedures for old-age insurance on behalf of all the Chinese employees on their records with the Shanghai Municipal branch office of the People's Insurance Company of China (hereinafter referred to as the Insurance Company).

[Article 3] Insurance items in these Measures refer to old-age pensions, medical expenses, funeral expenses and pensions for the disabled or the family of the deceased which are paid in respect of Chinese employees following their retirement.

[Article 4] After Chinese employees of equity joint equity Enterprises go through retirement procedures having reached the retirement age stipulated by the Chinese Government, the Insurance Company will pay out insurance benefits for the various insurance items to the retired Chinese employees through their respective enterprises in accordance with the rates stipulated for State-operated enterprises.

[Article 5] Should a Chinese employee of a joint equity Enterprises be dismissed prior to the expiry of the labour contract or resign upon the expiry of the duration of the contract or leave the joint equity Enterprises due to other reasons, the old-age insurance premium will be transferred to his or her new place of employment following the deduction of management fees and expenditure for the various insurance items.0 Should such a transfer not be feasible at the time, the old-age insurance premium shall remain with the Insurance Company until it is able to be transferred to the new work until or unit retirement procedures are carried out.

[Article 6] Should an equity joint Enterprises close down due to bankruptcy or other reasons, the Insurance Company shall deduct the management fees and expenditure for the various insurance items in amounts proportional to the amount paid by the equity joint enterprises as the old-age insurance premium for its current employees and transfer the principal and interest of the remaining old-age insurance premium to the employees' new employers.

[Article 7] Beginning from the first month that a joint equity enterprise officially recruits Chinese employees, it must pay the Insurance Company, prior to the 25th day of each month, an equivalent of 30 per cent of the total actual monthly wage earned by the Chinese employees as an old-age insurance premium.

[Article 8] The term "total actual monthly wage" refers to an employee's basic wage, allowance, bonus and supplementary food cost subsidy.0 Overtime pay, afternoon or night shift pay and an employee's share of the bonus accrued from after-tax profit need not be included.

[Article 9] The Insurance Company will take an equivalent of 1.5 per cent of the total actual monthly wage of the Chinese employees of the joint equity enterprises as a management fee.0 This will be deducted from the old-age insurance premium.

[Article 10] The trade union of a joint equity enterprise shall supervise a examine the amount of the total actual monthly wage and the rate of payment, and the union president or employees' representative will sign the old-age insurance premium statement.

[Article 11] A joint equity enterprise shall make immediate adjustments whenever there is an alteration to the number of employees and the old-age insurance premium shall be paid according to the adjusted number.

[Article 12] Old-age insurance for Chinese employees of Sino-foreign Co-operative enterprises and enterprises with foreign investment, as well as joint equity enterprises, Co-operative enterprises and enterprises with sole investment operated by compatriots from Hong Kong, Macao and Taiwan or by overseas Chinese which are established in Shanghai Municipality, should be implemented with reference to these Measures.

[Article 13] The Insurance Company is responsible for the implementation of these Measures and for the formulation of detailed implementing rules.

[Article 14] These Measures will be effective from 1 June 1986.