This market and benchmark insight report for China is prepared by Ximco, Asinta’s employee benefits consulting Partner in China. The report is a quick way to begin benchmarking employee benefits in China for 2021 because the information is easy to understand and gives you a solid footing to help you move forward in your decisions about the benefits you want to offer employees in China.
Inside the report, you’ll find details about benchmarking employee benefits in China for 2021 including:
- Statutory Benefits
- Insured Benefits
- Fringe Benefits and Perks
- Plan Setup
The following is an excerpt.
Social Insurance in China
The State Social Insurance System is the basis for mandatory benefits in China. It is a state scheme without any involvement from the commercial insurance sector, and the municipal government administers it. Both the employer and employees contribute to social insurance in proportion to salary (percentages vary by municipality, and the maximum contributions are capped). When first hiring staff, a company enters into these social insurance arrangements by submitting labor and social insurance notifications to the relevant authorities.
Social Medical insurance Scheme
The Social Medical Insurance Scheme underlies almost the entire healthcare system in China. It is made up of predominately state-owned hospitals. However, it increasingly includes privately-owned hospitals and clinics that also tap into the ‘infrastructure’ of Social Medical Insurance to reach the masses of the population who participate in the scheme. The Social Medical Scheme effectively operates with greater levels of individual co-payment for typical clinical visits and general outpatient care. Where inpatient care, surgery, and/or complex and expensive treatments are necessary, the social scheme will begin to bear a more significant share of the costs.
Other Helpful Information
- Department of Work Injury Insurance
- Department of Pensions and Department of Rural Social Insurance, under the Ministry of Human Resources and Social Security