Explore the intricate tapestry of China Statutory and Private Employee Benefits, encompassing both statutory and private offerings. Our analysis unravels the diverse spectrum of benefits, from social insurance to innovative perks, shaping the employment landscape. Stay informed about regulatory frameworks, emerging trends, and employer strategies that influence the holistic well-being of Chinese workers. Gain valuable insights into the dynamic intersection of labor laws and private initiatives, guiding businesses towards fostering a competitive and caring workplace environment in China.

China Employee Benefits Segmentation by State and Compulsory Benefits

The key state and compulsory benefits offered by employers in China are retirement benefits, death in service, long-term disability benefits, short-term sickness benefits, medical benefits, workers’ compensation insurance, maternity and paternity benefits, and other benefits.

Death Benefits: This scheme covers all employees and self-employed persons who work in urban areas and casual workers, civil servants, certain public sector employees, small business holders without employees, and civil servants. In some regions, the coverage for urban self-employed individuals is voluntary. Certain regions of China also have special arrangements for former farmers and internal migrants. This benefit is provided for events of work-related death as well as non-work related.

Workers’ Compensation Insurance: Workmen’s compensation is a local government-administered social insurance system. In the case of non-participating enterprises, an employer liability system is available. It covers employees working in enterprises, private non-enterprise units, civil associations, foundations, law firms, institutions, and accounting firms. The benefits included under workmen’s compensation are temporary disability benefits, permanent disability benefits, survivor’s benefits, and medical benefits. The Department of Work Injury Insurance (under MOHRSS) provides general guidance and ensures the regulations are followed.

Maternity and Paternity Benefits: This scheme covers medical costs that are out of maternity, including those related to birth control. This coverage is provided to employees and their spouses in urban areas, working in enterprises, social groups, and non-profit and government organizations. Voluntary coverage is provided to self-employed individuals. This benefit is taken care of by the department of medical insurance (which operates under the MHRSS).

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