China Compliance Guide: Employment & Payroll, Tax & Regulations
Key Law Terms Overview in China
EOR-Related Laws in China
Legal Employment: EORs must comply with the Labor Contract Law of the People’s Republic of China, covering written employment contracts, probation periods, working hours, employee protections, and termination procedures.
Social Security & Contributions: Employers must register employees and pay mandatory social insurance contributions, including pension, medical, unemployment, work injury, and maternity insurance. Employee contributions must be withheld and remitted monthly.
Payroll & Tax: Monthly payroll must include gross-to-net salary calculation, individual income tax withholding, social insurance contributions, and statutory benefits.
Contracts & Documentation: Employment contracts must be in compliance with Chinese law, including mandatory contract terms. All employment records, social insurance registration, and tax filings must be maintained properly.
Termination & Severance: EOR handles statutory notice periods, termination procedures, and severance payments according to the Labor Contract Law and employee seniority.
Liability: The EOR acts as the legal employer responsible for compliance with Chinese labor, tax, and social insurance laws, while the client company manages the employee’s day-to-day work and operational tasks.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Labor Law of the People's Republic of China
Chapter I General Provisions
Article 1 This Law is formulated in accordance with the Constitution in order to protect the legitimate rights and interests of labourers, regulate labour relationship, establish and safeguard a labour system suited to the socialist market economy, and promote economic development and social progress.
Article 2 This Law shall apply to enterprises, individual economic organizations (hereinafter referred to as employing units) and labourers who form a labour relationship therewith within the territory of the People’s Republic of China.
State organs, institutions and public organizations as well as labourers who form a labour contract relationship therewith shall be bound by this Law.
Article 3 Labourers shall have equal right to employment and choice of occupation, the right to remuneration for labour, to rest and vacations, to protection of occupational safety and health, to training in vocational skills, to social insurance and welfare, to submission of labour disputes for settlement and other rights relating to labour stipulated by law.
Labourers shall fulfill their labour tasks, improve their vocational skills, follow rules on occupational safety and health, and observe labour discipline and professional ethics.
Article 4 The employing units shall establish and perfect rules and regulations in accordance with the law so as to ensure that labourers enjoy the right to work and fulfill labour obligations.
Article 5 The State shall take various measures to promote employment, develop vocational education, lay down labour standards, regulate social incomes, perfect social insurance system, coordinate labour relationship, and gradually raise the living standard of labourers.
Article 6 The State shall advocate the participation of labourers in social voluntary labour and the unfolding of labour emulation and rational proposals campaign, encourage and protect labourers in conducting scientific research, technical renovation, inventions and creations, and commend and reward model and advanced workers.
Article 7 Labourers shall have the right to participate in, and organize, trade unions in accordance with the law.
Trade unions shall represent and safeguard the legitimate rights and interests of labourers, and independently carry out their activities in accordance with the law.
Article 8 Labourers shall take part in democratic management or negotiate with the employing units on an equal footing about protection of the legitimate rights and interests of labourers through the assembly of staff and workers or their congress or other forms as provided by law.
Article 9 The administrative department of labour under the State Council shall be in charge of the management of labour in the whole country.
The administrative departments of labour under the local people’s governments at or above the county level shall be in charge of the management of labour in their respective administrative areas.
Chapter II Promotion of Employment
Article 10 The State shall create conditions for employment and increase opportunities therefore by means of promotion of economic and social development.
The State shall encourage enterprises, institutions and public organizations to initiate industries or expand businesses for the increase of employment, within the scope provided by laws, and administrative rules and regulations.
The State shall support labourers to achieve employment by organizing themselves on a voluntary basis or by engaging in individual businesses.
Article 11 Local people’s governments at various levels shall take measures, by developing employment agencies of various forms, to provide employment services.
Article 12 Labourers, regardless of their ethnic group, race, sex, or religious belief, shall not be discriminated against in employment.
Article 13 Women shall enjoy the equal right, with men, to employment. With exception of the special types of work or post unsuitable to women as prescribed by the State, no unit may, in employing staff and workers, refuse to employ women by reason of sex or raise the employment standards for women.
Article 14 In respect of the employment of the disabled, people of minority ethnic groups, and demobilized armymen, where there are special stipulations in laws, rules and regulations, such stipulations shall apply.
Article 15 No employing units are allowed to recruit minors under the age of 16.
Institutions of literature and art, physical culture, and special arts and crafts that recruit minors under the age of 16 must go through the formalities of examination and approval in accordance with the relevant provisions of the State and guarantee their right to compulsory education.
Chapter III Labour Contracts and Collective Contracts
Article 16 A labour contract is an agreement that establishes the labour relationship between a laborer and an employing unit and defines the rights and obligations of respective parties.
A labour contract shall be concluded where a labour relationship is to be established.
Article 17 Conclusion and modification of a labour contract shall follow the principles of equality, voluntariness and agreement through consultation, and shall not run counter to the stipulations of laws, administrative rules and regulations.
A labour contract once concluded in accordance with the law shall be legally binding. The parties must fulfill the obligations stipulated in the labour contract.
Article 18 The following labour contracts shall be invalid:
(1) Labour contracts violating laws, administrative rules and regulations; and
(2) Labour contracts concluded by means of fraud or intimidation, etc.
An invalid labour contract shall have no legal effect from the time of its conclusion. Where a part of a labour contract is confirmed as invalid and where the validity of the remaining part is not affected, the remaining part shall remain valid.
The invalidity of a labour contract shall be confirmed by a labour dispute arbitration committee or a people’s court.
Article 19 A labour contract shall be concluded in written form and contain the following clauses:
(1) Term of a labour contract;
(2) Work assignment;
(3) Labour protection and working conditions;
(4) Labour remuneration;
(5) Labour discipline;
(6) Conditions for the termination of the labour contract; and
(7) Liabilities for the violation of the labour contract.
Apart from the required clauses specified in the preceding paragraph, a labour contract may contain other clauses agreed upon by the parties through consultation.
Article 20 The term of a labour contract is classified into fixed term, non-fixed term and the completion of a specific assignment as a term.
Where a labourer has worked in the same employing unit for ten consecutive years or more and both parties agree to extend the term of the labour contract, if the labourer requests the conclusion of a labour contract with a non-fixed term, a labour contract with a non-fixed term shall be concluded.
Article 21 A probation period may be specified in a labour contract. The probation period shall not exceed six months.
Article 22 The parties to a labour contract may stipulate in the labour contract matters concerning keeping business secrets of the employing unit.
Article 23 A labour contract shall terminate immediately upon the expiration of its term or the occurrence of the conditions for the termination of the labour contract as agreed upon by the parties.
Article 24 A labour contract may be cancelled by agreement reached between the parties through consultation.
Article 25 If a labourer is under any of the following circumstances, the employing unit may cancel the labour contract with him:
(1) Having been proved not up to the requirements for recruitment during the probation period;
(2) Having seriously violated labour discipline or the rules and regulations of the employing unit;
(3) Having caused great losses to the employing unit through gross neglect of duty or malpractice for personal gains; and
(4) Having been investigated for criminal responsibility in accordance with the law.
Article 26 In any of the following circumstances, the employing unit may cancel the labour contract, however, a written notice shall be given to the labourer concerned 30 days in advance:
(1) Where a labourer is unable to take up his original work or any work specially arranged by the employing unit after completion of the period of his medical treatment for illness or not work-related injury;
(2) Where a labourer is unqualified for his work and remains unqualified even after receiving a training or after readjusting the work post; and
(3) Where the objective conditions taken as the basis for the conclusion of the contract have changed so greatly that the original labour contract cannot be carried out, and no agreement on modification of the labour contract can be reached through consultation by the parties.
Article 27 Where it is really necessary for an employing unit to cut down the number of workforce when it comes to the brink of bankruptcy and undergoes a statutory consolidation or runs deep into difficulties in production and management, the employing unit shall explain the situation to the trade union or all of its staff and workers 30 days in advance, solicit opinions from them and report to the administrative department of labour before it may cut down the number of workforce.
Where the employing unit that cut down the number of its workforce in accordance with this Article is to recruit personnel within six months, it shall give priority in employment to the persons who have been laid off.
Article 28 Where an employing unit cancelled its labour contracts according to the stipulations in Article 24, Article 26 and Article 27 of this Law, it shall make economic compensations in accordance with the relevant provisions of the State.
Article 29 Where a labourer is under any of the following circumstances, the employing unit shall not cancel its labour contract with the labourer by availing itself of the stipulations in Article 26 and Article 27 of this Law:
(1) Being confirmed to have totally or partially lost the ability to work due to occupational diseases or work-related injuries;
(2) Receiving medical treatment for diseases or injuries within the prescribed period of time;
(3) Being a female staff member or worker during her pregnant, puerperal, or breast-feeding period; or
(4) Other circumstances stipulated by laws, administrative rules and regulations.
Article 30 Where an employing unit cancelled its labour contract and the trade union considers it inappropriate, the trade union shall have the right to put forward its opinions. If the employing unit violated the law, rules or regulations or labour contracts, the trade union shall have the right to request that the matter be handled anew. Where the labourer applies for arbitration or institutes a lawsuit, the trade union shall render him support and assistance in accordance with the law.
Article 31 If a labourer is to cancel his labour contract, he shall give a written notice to the employing unit 30 days in advance.
Article 32 A labourer may, in any of the following circumstances, notify at any time the employing unit of his cancelation of the labour contract:
(1) Within the probation period;
(2) Where the employing unit forces the labourer to work by means of violence, intimidation or illegal restriction of personal freedom; or
(3) Failure on the part of the employing unit to pay labour remuneration or to provide working conditions as agreed upon in the labour contract.
Article 33 The staff and workers of an enterprise as one party may conclude a collective contract with the enterprise on matters relating to labour remuneration, working hours, rest and vacations, occupational safety and health, insurance and welfare. The draft collective contract shall be submitted to the congress of the staff and workers or to all the staff and workers for discussion and adoption.
A collective contract shall be concluded by the trade union on behalf of the staff and workers with the enterprise; in an enterprise where the trade union has not yet been set up, such contract shall be concluded by the representatives elected by the staff and workers with the enterprise.
Article 34 Upon conclusion of a collective contract, it shall be submitted to the administrative department of labour. If no objections have been raised by the administrative department of labour within 15 days from the date of receipt of the text of the contract, the collective contract shall go into effect automatically.
Article 35 A collective contract concluded in accordance with the law shall be binding on both the enterprise and all of its staff and workers. The standards of working conditions and labour remuneration agreed upon in labour contracts concluded between individual labourers and the enterprise shall not be lower than those stipulated in the collective contract.
Chapter IV Working Hours, Rest and Vacations
Article 36 The State shall practise a working hour system wherein labourers shall work for no more than eight hours a day and no more than 44 hours a week on the average.
Article 37 In case of labourers working on the basis of piecework, the employing unit shall rationally fix quotas of work and standards of piecework remuneration in accordance with the working hour system stipulated in Article 36 of this Law.
Article 38 The employing unit shall guarantee that its staff and workers have at least one day off in a week.
Article 39 Where an enterprise can not follow the stipulations in Article 36 and Article 38 of this Law due to the special nature of its production, it may, with the approval of the administrative department of labour, adopt other rules on working hours and rest.
Article 40 The employing unit shall, during the following festivals, arrange holidays for its labourers in accordance with the law:
(1) The New Year’s Day;
(2) The Spring Festival;
(3) The International Labour Day;
(4) The National Day; and
(5) Other holidays provided by laws, rules and regulations.
Article 41 The employing unit may extend working hours as necessitated by its production or business operation after consultation with the trade union and labourers, but the extended working hour per day shall generally not exceed one hour; if such extension is needed for special reasons, under the condition that the health of labourers is guaranteed, the extended hours shall not exceed three hours per day. However, the total extension in a month shall not exceed thirty six hours.
Article 42 Under any of the following circumstances, the extension of working hours shall not be subject to restriction of the provisions of Article 41 of this Law :
(1) Where in the event of natural disasters, accidents or for other reasons, the life and health of labourers or the safety of property is in peril, and urgent dealing is needed;
(2) Where in the event of breakdown of production equipment, transportation lines or public facilities, production and public interests are affected; and rush repair must be done without any delay; or (3) Other circumstances stipulated by laws, administrative rules and regulations.
Article 43 The employing unit shall not extend working hours of labourers in violation of the provisions of this Law.
Article 44 Under any of the following circumstances, the employing unit shall, according to the following standards, pay labourers remunerations that are higher than those for normal working hours:
(1) To pay no less than 150 per cent of the normal wages if an extension of working hours is arranged;
(2) To pay no less than 200 per cent of the normal wages if work is arranged on off days and no make-up off days can be arranged; or
(3) To pay no less than 300 per cent of the normal wages if work is arranged on statutory holidays.
Article 45 The State shall practise a system of annual vacation with pay.
Labourers who have worked for one successive year or more shall be entitled to an annual vacation with pay. The specific measures therefore shall be formulated by the State Council.
Chapter V Wages
Article 46 The distribution of wages shall follow the principle of distribution according to work and equal pay for equal work.
The level of wages shall be gradually raised on the basis of economic development. The State shall exercise macro-control over the total payroll.
Article 47 The employing unit shall, based on the characteristics of its production and business operation as well as economic results, independently determine the form of wage distribution and wage level for its own unit according to law.
Article 48 The State shall implement a system of guaranteed minimum wages. The specific standards of minimum wages shall be determined by the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government and submitted to the State Council for the record.
Wages to be paid to labourers by the employing unit shall not be lower than the local standards of minimum wages.
Article 49 The determination and readjustment of the standards of minimum wages shall be made with reference to the following factors in a comprehensive manner:
(1) The lowest living expenses of labourers themselves plus that of the average number of family members they support;
(2) The average wage level of the society as a whole;
(3) The labour productivity;
(4) The situation of employment; and
(5) The regional differences in economic development.
Article 50 Wages shall be paid monthly to labourers themselves in the form of cash. The wages to be paid to labourers shall not be embezzled nor the payment thereof delayed without justification.
Article 51 The employing unit shall pay wages according to law to labourers for their statutory holidays, marriage or funeral leaves or periods when they participate in social activities in accordance with the law.
Chapter VI Occupational Safety and Health
Article 52 The employing unit must establish and perfect the system of occupational safety and health, strictly implement the rules and standards of the State with regard to occupational safety and health, carry out education among labourers in occupational safety and health, prevent accidents in the process of work, and lessen occupational hazards.
Article 53 Facilities of occupational safety and health must meet the standards set by the State.
Facilities of occupational safety and health for a newly-built, renovated or expanded project must be designed, constructed and put into operation or use simultaneously with the main part of the project.
Article 54 The employing unit must provide labourers with occupational safety and health conditions conforming to the provisions of the State and necessary articles of labour protection, and provide regular health examination for labourers engaged in work with occupational hazards.
Article 55 Labourers to be engaged in specialized operations must receive specialized training and acquire qualifications for such special operations.
Article 56 Labourers must strictly abide by rules on safe operation in the process of their work.
If the managerial personnel of the employing unit give command contrary to the established rules and compel labourers to operate under unsafe conditions, the labourers shall have the right to refuse such operation; labourers shall have the right to criticize, report or file charges against any acts endangering the safety of their life or health.
Article 57 The State shall establish a system of statistical report and disposition of accidents of injuries or deaths and cases of occupational diseases. The administrative departments of labour and other relevant departments under the people’s governments at or above the county level and the employing units shall, according to law, carry out statistical report and disposition with respect to accidents of injuries or deaths occurred to labourers in the process of their work and situations of occupational diseases.
Chapter VII Special Protection for Female Staff and Workers and Juvenile Workers
Article 58 The State shall provide special protection to female staff and workers and juvenile workers.
“Juvenile Workers“ refer to labourers who have reached the age of 16 but under the age of 18 .
Article 59 It is prohibited to arrange for female staff and workers to engage in work down the pit of mines, or work with Grade IV physical labour intensity as prescribed by the State, or other work forbidden to women.
Article 60 It is prohibited to arrange for female staff and workers during their menstrual periods to engage in work high above the ground, under low temperature, or in cold water or work with Grade III physical labour intensity as prescribed by the State.
Article 61 It is prohibited to arrange for women workers or staff members during their pregnancy to engage in work with Grade III physical labour intensity as stipulated by the State or other work forbidden to pregnant women. It is prohibited to arrange for women workers or staff members who have been pregnant for seven months or more to work in extended working hours or to work night shifts.
Article 62 Female staff and workers shall be entitled to no less than ninety days of maternity leaves for childbirth.
Article 63 It is prohibited to arrange for female staff and workers during the period of breast-feeding their babies of less than one year old to engage in work with Grade III physical labour intensity as prescribed by the State or other labour forbidden to women during their breast-feeding period, or to work in extended working hours or to work night shifts.
Article 64 It is prohibited to arrange for juvenile workers to engage in work that is down the pit of mines, or poisonous or harmful, or with Grade IV physical labour intensity as prescribed by the State, or other work forbidden to them.
Article 65 The employing unit shall provide regular physical examinations to juvenile workers.
Chapter VIII Vocational Training
Article 66 The State shall take various measures, through various channels, to expand vocational training undertakings so as to develop professional skills of labourers, improve their qualities, and raise their employment capability and work ability.
Article 67 People’s governments at various levels shall incorporate the development of vocational training into their plans of social and economic development, encourage and support enterprises, institutions, public organizations and individuals, if conditions permit, to sponsor vocational training in various forms.
Article 68 The employing unit shall establish a system of vocational training, retain and use vocational training funds in accordance with the provisions of the State, and provide labourers with vocational training in a planned way and in the light of the actual conditions of the unit.
Labourers to be engaged in technical work must receive training before taking up their posts.
Article 69 The State shall determine occupational classification, set professional skill standards for the occupations classified, and practise a system of vocational qualification certification. The examination and verification organizations approved by the government shall be charged with the responsibility of conducting examination and verification of the professional skills of labourers.
Chapter IX Social Insurance and Welfare
Article 70 The State shall develop social insurance undertakings, establish a social insurance system, and set up social insurance funds so that labourers may receive assistance and compensations under such circumstances as old age, illness, work-related injury, unemployment and child-birth.
Article 71 The level of social insurance shall be in proportion to the level of social and economic development and the social affordability.
Article 72 The sources of social insurance funds shall be determined according to the branches of insurance, and an overall raising of social insurance funds shall be practised step by step. The employing unit and labourers must participate in social insurance and pay social insurance premiums in accordance with the law.
Article 73 Labourers shall, under the following circumstances , enjoy social insurance benefits in accordance with the law :
(1) Being retired;
(2) Being ill or injured;
(3)Being injured or disabled while on duty or contracted with occupational diseases;
(4) Being unemployed; or
(5) Childbirth.
After the death of a labourer, the surviving family members of the deceased shall be entitled to subsidies for such survivors according to law.
The conditions and standards for labourers to enjoy social insurance benefits shall be stipulated by laws, rules and regulations.
The social insurance money that labourers are entitled to must be paid on schedule and in full.
Article 74 The agencies in charge of social insurance funds shall collect, expend, manage and operate the funds in accordance with legal provisions, and assume the responsibility to preserve and increase the value of such funds.
The supervisory organizations of social insurance funds shall exercise supervision over the revenue and expenditure, management and operation of social insurance funds in accordance with the stipulations of laws.
The establishment and functions of the agencies in charge of social insurance funds and the supervisory organizations of social insurance funds shall be prescribed by law.
No organization or individual is allowed to misappropriate social insurance funds.
Article 75 The State shall encourage the employing unit to set up supplementary insurance for labourers according to its actual conditions.
The State shall advocate that individual labourers practise insurance in the form of saving deposits.
Article 76 The State shall develop social welfare undertakings, construct public welfare facilities, and provide conditions for labourers to rest, recuperate and convalesce.
The employing unit shall create conditions to improve collective welfare and increase labourers’ social benefits.
Chapter X Labour Dispute
Article 77 If a labour dispute between the employing unit and a labourer arises, the parties may apply for mediation or arbitration or take legal proceedings according to law, or may seek for a settlement through consultation.
The principle of mediation shall be applicable to the procedures of arbitration and litigation.
Article 78 The settlement of a labour dispute shall follow the principle of legality, justness and promptness so as to safeguard the legitimate rights and interests of the parties in accordance with the law.
Article 79 After a labour dispute arises, the parties may apply to the labour dispute mediation committee of their unit for mediation; if the mediation fails and one of the parties requests arbitration, that party may apply to the labour dispute arbitration committee for arbitration. Either party may also directly apply to the labour dispute arbitration committee for arbitration. If any party is not satisfied with the decision of arbitration, the party may bring a lawsuit to the people’s court.
Article 80 A labour dispute mediation committee may be established within the employing unit. The committee shall be composed of representatives of the staff and workers, the employing unit, and the trade union. The chairmanship of the committee shall be assumed by a representative of the trade union.
If an agreement is reached through mediation in the case of a labour dispute, it shall be implemented by the parties.
Article 81 A labour dispute arbitration committee shall be composed of representatives of the administrative department of labour, representatives from the trade union at the corresponding level, and representatives of the employing unit. The chairmanship of the committee shall be assumed by a representative of the administrative department of labour.
Article 82 The party that requests arbitration shall file a written application with a labour dispute arbitration committee within 60 days from the date of the occurrence of the labour dispute. The arbitration committee shall generally make an arbitration decision within 60 days from the date of receiving the application. If no objections have been raised, the parties must execute the arbitration decision.
Article 83 Where a party to a labour dispute is not satisfied with the arbitration decision, the party may bring a lawsuit to the people’s court within 15 days from the date of receiving the award of arbitration. Where a party has neither brought a lawsuit nor executed the arbitration decision within the period prescribed by law, the other party may apply to the people’s court for enforcement.
Article 84 Where a dispute arises from the conclusion of a collective contract and no settlement can be reached through consultation by the parties concerned, the administrative department of labour under the local people’s government may coordinate with the parties and organizations concerned in settling the dispute.
Where a dispute arises from the fulfillment of a collective contract and no settlement can be reached through consultation by the parties concerned, the parties may apply to the labour dispute arbitration committee for arbitration. If any party is not satisfied with the arbitration decision, it may bring a lawsuit to the people’s court within 15 days from the date of receiving the award of arbitration.
Chapter XI Supervision and Inspection
Article 85 The administrative departments of labour under the people’s governments at or above the county level shall, in accordance with the law, supervise and inspect the implementation of laws, rules and regulations on labour by the employing unit, and have the power to stop any acts that run counter to laws, rules and regulations on labour and order the rectification thereof.
Article 86 The inspectors from the administrative departments of labour under the people’s governments at or above the county level shall, while performing their public duties, have the right to enter into the employing units to make investigations about the implementation of laws, rules and regulations on labour, consult the necessary data and inspect the labour sites.
The inspectors from the administrative departments of labour under the people’s governments at or above the county level must produce their papers while performing public duties, enforce laws impartially, and abide by the relevant regulations.
Article 87 Relevant departments under the people’s governments at or above the county level shall, within the scope of their respective functions and responsibilities, supervise the implementation of laws, rules and regulations on labour by the employing units.
Article 88 Trade unions at various levels shall, in accordance with the law, safeguard the legitimate rights and interests of labourers, and supervise the implementation of laws, rules and regulations on labour by the employing units.
Any organizations or individuals shall have the right to expose and accuse any acts that violate the law, rules and regulations on labour.
Chapter XII Legal Responsibility
Article 89 Where the rules and regulations on labour formulated by the employing unit run counter to the provisions of laws, rules and regulations, the administrative department of labour shall give a warning to the unit, and order it to make corrections; where any harms have been caused to labourers, the unit shall be liable for compensation.
Article 90 Where the employing unit, in violation of the stipulations of this Law, extends the working hours of labourers, the administrative department of labour shall give it a warning, order it to make corrections, and may impose a fine thereon.
Article 91 Where the employing unit commits any of the following acts infringing upon the legitimate rights and interests of labourers, the administrative department of labour shall order it to pay labourers remuneration of wages or to make up for economic losses, and may also order it to pay compensation:
(1) To embezzle wages or delay in paying wages to labourers without reason;
(2) To refuse to pay labourers remuneration of wages for the extended working hours;
(3) To pay labourers wages below the local standard of minimum wages; or
(4) To fail to provide labourers with economic compensations in accordance with the provisions of this Law after cancellation of labour contracts.
Article 92 Where the occupational safety facilities and health conditions of an employing unit do not comply with the provisions of the State or the unit fails to provide labourers with necessary labour protection articles and labour protection facilities, the administrative department of labour or other relevant departments shall order it to make corrections, and may impose a fine thereon. If the circumstances are serious, the above-said departments shall refer the matter to the people’s government at or above the county level for a decision ordering the unit to stop production for consolidation. If the unit fails to take measures against the hidden danger of an accident, which leads to the occurrence of a serious accident, thus causing losses of lives and properties to labourers, persons who are held responsible shall be investigated for criminal responsibility by applying mutatis mutandis the provisions of Article 187 of the Criminal Law.
Article 93 Where the employing unit compels labourers to operate against the established rules and under unsafe conditions, thus causing major accident of injuries and deaths, and serious consequences, persons who are held responsible shall be investigated for criminal responsibility according to law.
Article 94 Where the employing unit illegally recruits minors under the age of 16, the administrative department of labour shall order it to make corrections, and impose a fine thereon. If the circumstances are serious, the administrative department for industry and commerce shall revoke its business license.
Article 95 Where the employing unit, in violation of the provisions of this Law on the protection of female staff and workers and juvenile workers, infringes upon their legitimate rights and interests, the administrative department of labour shall order it to make corrections, and impose a fine thereon. Where any harm has been done to female staff and workers and juvenile workers, the unit shall be liable for compensation.
Article 96 Where the employing unit commits one of the following acts, persons who are held responsible shall be punished by the public security organ with a detention of 15 days or less, or a fine, or a warning; where the case constitutes a crime, persons who are held responsible shall be investigated for criminal responsibility according to law:
(1) Compelling labourers to work by means of violence, intimidation or illegal restriction of personal freedom; or
(2) Humiliating, imposing corporal punishment upon, beating, illegally searching, or detaining labourers.
Article 97 Where an invalid contract concluded for reasons of the employing unit has caused damage to labourers, the employing unit shall be liable for compensation.
Article 98 Where the employing unit, in violation of the conditions specified in this Law, cancels labour contracts or intentionally delays the conclusion of labour contracts, the administrative department of labour shall order it to make corrections; where any damage has been caused to labourers, the employing unit shall be liable for compensation according to law.
Article 99 Where an employing unit recruits labourers whose labour contracts have not yet been cancelled, thus causing economic losses to the former employing unit of such labourers, the employing unit shall assume joint liabilities for compensation according to law.
Article 100 Where the employing unit fails to pay social insurance premiums without reason, the administrative department of labour shall order it to pay within a fixed period. Where the unit still fails to make the payment at the expiration of the time limit, an overdue fine may be demanded.
Article 101 Where the employing unit unjustifiably obstructs the administrative department of labour and other relevant departments as well as their functionaries from exercising the powers of supervision and inspection or retaliates against informers, the administrative department of labour or other relevant departments shall impose a fine upon the unit. Where the case constitutes a crime, persons who are held responsible shall be investigated for criminal responsibility according to law.
Article 102 Where labourers cancel labour contracts in violation of the conditions specified in this Law or violate terms on secret-keeping matters agreed upon in the labour contracts, thus causing economic losses to the employing unit, such labourers shall be liable for compensation in accordance with the law.
Article 103 Where functionaries of the administrative department of labour or other relevant departments abuse their functions and powers, neglect their duties, and engage in malpractices for selfish ends, where the case constitutes a crime, they shall be investigated for criminal responsibility according to law; if the case does not constitute a crime, they shall be given administrative sanctions.
Article 104 Where functionaries of the State or personnel of the agencies in charge of social insurance funds misappropriate the social insurance funds, where the case constitutes a crime, they shall be investigated for criminal responsibility according to law.
Article 105 With respect to infringement of the legitimate rights and interests of labourers committed in violation of the provisions of this Law, where punishments are provided by other laws or administrative rules and regulations, the provisions thereon in such laws or administrative rules and regulations shall apply.
Chapter XIII Supplementary Provisions
Article 106 People’s governments of provinces, autonomous regions or municipalities directly under the Central Government shall, according to this Law and in light of their local conditions, work out the implementing measures for the system of labour contract and report them to the State Council for the record.
Article 107 This Law shall go into effect as of January 1, 1995.
Reference Link: https://www.cecc.gov/resources/legal-provisions/labor-law-of-the-peoples-republic-of-china
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Social Insurance Law of the People's Republic of China
Chapter I General Provisions
Article 1 This law is hereby enacted in accordance with the Constitution for the purposes of regulating social insurance relationships, securing citizens’ legitimate rights and interests to participate in a social insurance system and receive social insurance benefits, achieving a fair sharing of benefits of development by citizens, and promoting social harmony and stability.
Article 2 The State shall establish a social insurance system consisting of a basic old-age insurance, basic medical insurance, work injury insurance, unemployment insurance, and maternity insurance to guarantee citizens’ rights to receive material assistance from the State and society according to law upon old age, sickness, work injury, unemployment and maternity.
Article 3 The social insurance system follows the principle of wide coverage, modest benefits, multi-tiered programmes and a sustainable system. The level of the social insurance system shall correspond to that of economic and social development.
Article 4 Each employer and individual within the boundary of the People’s Republic of China shall, according to law, make social insurance contributions, have the right to access the related contribution records and individual social insurance benefit credits, and request social insurance consultancy and other relevant services from a social insurance agency.
Each individual shall be entitled to social insurance benefits according to law, and have the right to exercise oversight over contributions made by the employer on his or her behalf.
Article 5 The People’s Governments at and above the county level shall incorporate social insurance into their local economic and social development programmes.
The State shall raise funds for the social insurance system through multiple channels. The People’s Governments at and above the county level shall provide financial support as deemed necessary to social insurance programmes.
The State shall support social insurance through tax incentive policies.
Article 6 The State shall subject social insurance funds to vigorous supervision and control.
The State Council，and People’s Governments of provinces, autonomous regions, and municipalities directly under the Central Government shall establish and improve the supervision and management system for social insurance funds, and guarantee safe and effective fund operations.
The People’s Governments at and above the county level shall adopt measures to encourage and support all stakeholders to participate in social insurance fund supervision.
Article 7 The social insurance administrative department of the State Council shall take charge of national social insurance administration. Any other relevant department of the State Council shall take charge of social insurance affairs within its jurisdiction of responsibility.
The social insurance administrative department of the local People’s Government at or above the county level shall take charge of social insurance administration in its administrative region. Any other relevant department of the local People’s Government at or above the county level shall take charge of social insurance affairs within its jurisdiction of responsibility.
Article 8 A social insurance agency provides social insurance services, and is responsible for social insurance registration, bookkeeping for the participants, and paying social insurance benefits to the beneficiaries.
Article 9 Trade unions shall defend workers’ legitimate rights and interests according to law, have the right to participate in studies and research on fundamental issues related to social insurance, and act as members of the social insurance supervisory committees to perform supervision over the matters related to workers’ social insurance rights and interests.
Chapter II Basic Old-Age Insurance
Article 10 Each employee shall enroll in the basic old-age insurance system; and the employer and the employee shall jointly make basic old-age insurance contributions.
A proprietor of privately or individually-owned business with no hired labour, a part-time worker who is not covered by the basic old-age insurance system through his or her employer, and any other person in employment of flexible forms, may elect to enroll in the basic old-age insurance system, and the person in question shall make basic old-age insurance contributions.
The approach to the basic old-age insurance for civil servants and that for working people who are governed likewise by the Civil Service Law shall be regulated by the State Council.
Article 11 The basic old-age insurance shall be a combination of social pooling and individual accounts.
The basic old-age insurance fund shall consist of contributions from the employers and employees and government subsidies.
Article 12 An employer shall make basic old-age insurance contributions at the State-fixed rate of the employees’ payroll, and the contributions shall be deposited into the basic old-age insurance pooling fund.
An employee shall make basic old-age insurance contributions at the State-fixed rate for his or her wage, and the contributions shall be deposited into his or her individual account.
A member of the basic old-age insurance as proprietor of privately or individually-owned business with no hired labour, part-time worker who is not covered by the basic old-age insurance system through his or her employer, or any other person in employment of flexible forms shall make basic old-age insurance contributions as set by the State; and the contributions shall be divided and deposited separately into the pooling fund and an individual account.
Article 13 The basic old-age insurance contributions due from employees of state enterprises and institutions for their working years prior to the initiation of the old-age insurance system, which are treated as contributing years, shall be made up by the government.
When there arises shortfall for the basic old-age insurance fund to cover its obligations, subsidies shall be provided by the government into the fund.
Article 14 Advance withdrawal from an individual account shall not be allowed. The interest rate of an individual account shall be no less than that for a fixed-term bank account, and interests accrued are not subject to taxation. The balances in the individual account are hereditary upon death of the account bearer.
Article 15 Basic old-age insurance benefits consist of pensions from the pooling and from the individual account.
The basic old-age insurance benefit for a member is determined by the following factors: the member’s cumulative length of contribution payment and assessed wage for contributions, the mean wage of the employees of the district where the member resides, his or her credits in the individual account, and life expectancy of the urban population.
Article 16 A member of the basic old-age insurance shall receive the basic old-age pension on a monthly basis if the member’s cumulative length of contribution payment is no less than fifteen years upon reaching the legal retirement age.
If the cumulative length of contribution payment of a member of the basic old-age insurance is less than fifteen years when the member reaches the legal retirement age, the member may receive the basic old-age insurance on a monthly basis once the member makes up the contribution payment to what is required for fifteen years. The member may elect to transfer to the new rural social insurance of the old-age pension or social insurance of the old-age pension for urban residents, and receive pensions in accordance with the regulations of the State Council.
Article 17 When a member of the basic old-age insurance dies from illnesses or causes not related to work, the survivors of the member are entitled to receive funeral subsidies and bereavement allowances; when a member becomes completely unfit for work due to illnesses or causes not related to work before reaching the legal retirement age, the member is entitled to illness and disability allowances. The expenses required shall be covered from the basic old-age insurance fund.
Article 18 The State shall set up a mechanism for adjusting basic old-age insurance benefits when necessary, and raise the basic old-age insurance benefits at appropriate intervals according to the factors of mean growth of employees’ wages and price increases.
Article 19 The basic old-age insurance relationship of a member who has worked across different pooling districts shall transfer together with the member, and the member’s lengths of contribution payment shall be cumulative. When the member reaches the legal retirement age, his or her basic old-age pension shall be calculated in segregation corresponding to the phases of contribution payment, yet the pension shall be paid in integration as an aggregate. The concrete approach shall be regulated by the State Council.
Article 20 The State shall establish and improve the new rural social insurance of the old-age pension.
The new rural social insurance of the old-age pension shall be a combination of individual contributions, collective subsidies and government allowances.
Article 21 The benefits of the new rural social insurance of the old-age pension shall consist of base pensions and individual account benefits.
A rural resident who is a member of the new rural social insurance of the old-age pension shall receive benefits of the new rural social insurance of the old-age pension on a monthly basis when the member satisfies the conditions set by the State
Article 22 The State shall establish and improve the social insurance of the old-age pension for urban residents.
The People’s Government of a province, autonomous region or municipality directly under the Central Government may, in accordance with its circumstances, may adopt an integrated programme to combine its social insurance of the old-age pension for urban residents with its new rural social insurance of the old-age pension.
Chapter III Basic Medical Insurance
Article 23 Each employee shall enroll in the basic medical insurance system for employees, and the employer and employees shall jointly make basic medical insurance contributions as set by the State.
A proprietor of privately or individually-owned business with no hired labour, a part-time worker who is not covered by the basic medical insurance system for employees through his or her employer, or any other person in employment of flexible forms may enroll in the basic medical insurance system for employees, and the individual in question shall make basic medical insurance contributions as set by the State.
Article 24 The State shall establish and improve the new rural cooperative medical system.
The administration of the new rural cooperative medical system shall be regulated by the State Council.
Article 25 The State shall establish and improve the basic medical insurance system for urban residents.
The basic medical insurance for urban residents shall be a combination of individual contributions and government subsidies.
The assessed individual contributions for beneficiaries of minimum living allowances, disabled persons who are unfit for work, seniors older than sixty years of age and minors from low-income families shall be covered by government subsidies.
Article 26 The benefits of the basic medical insurance for employees, new rural cooperative medical system and the basic medical insurance for urban residents shall be governed by national provisions.
Article 27 A member of the basic medical insurance for employees who satisfies the condition set by the State in terms of cumulative length of contribution payment upon reaching the legal age of retirement shall make no more basic medical insurance contributions after retirement, and be entitled to basic medical insurance benefits in accordance with national provisions; the member who does not satisfy that condition may make further contributions to reach the length of the years set by the State.
Article 28 Medical expenses for pharmaceuticals listed in the basic medical insurance directory, for diagnosis and treatment services and application of medical care facilities covered by the basic medical insurance, and medical expenses for emergencies and rescue services, shall be paid from the basic medical insurance fund in accordance with national provisions.
Article 29 Direct transactions shall be arranged between social insurance agencies and medical institutions and pharmaceutical entities to settle for insured members the proportion of the medical expenses payable by the basic medical insurance fund.
Social insurance administrative departments and health administrative departments shall set up a mechanism to settle medical expenses incurred in different localities, facilitating access of the insured members to their basic medical insurance benefits.
Article 30 Medical expenses listed as follows are not covered by the basic medical insurance fund:
(1) Expenses payable from the work injury insurance fund;
(2) Expenses payable by a third party;
(3) Expenses payable by public health; and
(4) Expenses for overseas medical services.
For medical expenses payable by a third party, when the third party refuses to pay or cannot be identified, interim payment shall be arranged from the basic medical insurance fund. The basic medical insurance fund has the right to demand repayment by the third party after providing the interim payment.
Article 31 Social insurance agencies may, for the sake of managing services, sign service agreements with medical institutions and pharmaceutical entities so as to regulate medical service performance.
Medical institutions shall provide to insured members medical services deemed as suitable and necessary.
Article 32 The basic medical insurance relationship of a member who has worked across different pooling districts shall transfer together with the member, and the member’s lengths of contribution payment shall be cumulative.
Chapter IV Work Injury Insurance
Article 33 Each employee shall enroll in the work injury insurance system. The employer shall make work injury contributions, and the employee is not liable for contributions.
Article 34 Differentiated rates of contributions for industries shall be determined by the State with due consideration of the risk levels associated with the industries. The rate for each industry shall be subdivided into stages according to the following factors: expenditures paid by work injury fund and frequency of work injury occurrences. The differentiated rates of contributions for industries and the rate stages for each industry shall be formulated by the social insurance administrative department of the State Council, and published and put into practice after approval by the State Council.
A social insurance agency shall determine the rate of contributions for an employer according to the following factors: the employer’s expenditures paid by the work injury fund, frequency of work injury occurrences in the business facility, and rate stage for the industry branch of the business.
Article 35 Each employer shall make work injury contributions at the rate set by the social insurance agency of its employees’ payroll.
Article 36 An employee shall be entitled to work injury benefits when the person is injured in an accident due to work-related causes or is affected by occupational diseases, and has undertaken work injury certification. The employee shall be entitled to disability benefits if the person has become unfit for work as assessed in the working fitness assessment.
Work injury certification and working fitness assessment shall be simple and convenient to operate.
Article 37 An employee who is injured or dies at work due to one of the following factors shall not be certified as a victim of work injury:
(1) Committing a crime intentionally;
(2) Insobriety or drug addiction;
(3) Self-mutilation or suicide; or
(4) Any other circumstance as provided by laws and administrative regulations.
Article 38 The following expenses related to work injury are payable from the work injury fund in accordance with national provisions:
(1) Medical expenses for work injury and rehabilitation expenses;
(2) Food allowances during hospitalization;
(3) Transportation, accommodation and food expenses incurred for medical services outside the pooling district;
(4) Expenses for provision and installation of disability aid equipment;
(5) The expenses of personal care as set by the working fitness assessment committee for people who need personal care in life;
(6) Lump-sum disability subsidies, and disability allowances payable on a monthly basis to disabled employees of degrees one through to four;
(7) Lump-sum medical subsidies payable to employees upon termination or rescinding of labour contracts;
(8) Funeral expenses, pension allowances for dependents and subsidies for work-related deaths paid to the survivors when employees die from work-related causes; and
(9) Expenses incurred for working fitness assessments.
Article 39 The following expenses incurred for work injury shall be payable by the employer in accordance with national provisions:
(1) Wages and welfare expenses for the duration of work injury treatment;
(2) Disability allowances paid each month to disabled employees of degrees five and six; and
(3) Lump-sum subsidies for disability employment eligible by employees upon termination or rescinding of labour contracts.
Article 40 When work-injured employees meet the conditions for receiving basic old-age pensions, payment of disability allowances shall cease, and the employees shall instead receive basic old-age pensions. If basic old-age pensions are less than disability allowances, the differentials shall be made up from the work injury insurance fund.
Article 41 When a work injury accident occurs while the employer does not make work injury contributions as required by law, work injury benefits shall be paid by the employer. If the employer refuses to pay, interim payment shall be arranged from the work injury insurance fund.
Interim payment for work injury benefits paid from the work injury fund shall be paid off by the employer. When the employer refuses to pay off, the social insurance agency may demand repayment in accordance with Article 63 of this law.
Article 42 When a work injury accident is caused by a third party, and the third party refuses to pay medical expenses for work injury treatment or the third party cannot be identified, interim payment for the expenses shall be arranged from the work injury insurance fund. The work injury insurance fund has the right to demand repayment from the third party after providing the interim payment.
Article 43 Work-injured employees shall cease receipt of work injury benefits when one of the following conditions is met:
(1) Losing eligibility for benefits;
(2) Refusing working fitness assessment; or
(3) Refusing medical treatment.
Chapter V Unemployment Insurance
Article 44 Each employee shall enroll in the unemployment insurance system, and the employer and employee shall jointly make unemployment insurance contributions as set by the State.
Article 45 An unemployed person shall receive unemployment benefits from the unemployment insurance fund when the following conditions are met:
(1) The employer and the person in question have made unemployment insurance contributions no less than one year prior to the unemployment;
(2) Termination of employment is not caused by the intentional actions of the person in question; and
(3) The person in question has registered as unemployed and is a jobseeker.
Article 46 When the cumulative length of contribution payment of the unemployed person and his or her employer prior to unemployment is greater than one year and less than five years, the maximum duration for unemployment benefits shall be twelve months; when the cumulative length is greater than five years but less than ten years, the maximum duration for unemployment benefits shall be eighteen months; when the cumulative length exceeds ten years, the maximum duration for unemployment benefits shall be twenty-four months. When a person becomes unemployed once again after taking up a new job, the length of contribution payment shall be counted anew, the duration for unemployment benefits shall be counted together with the balances left over from the entitled duration in the previous case, and the maximum shall not exceed twenty-four months.
Article 47 The standard of unemployment benefits shall be determined by the People’s Government of a province, autonomous region or municipality under the Central Government, and shall be no less than the minimum living allowances for urban residents in the region.
Article 48 For the duration of receiving unemployment benefits, unemployed persons shall be entitled to basic medical insurance benefits if they are members of the basic medical insurance for employees.
Basic medical insurance contributions due from unemployed persons shall be paid from the unemployment insurance fund. Unemployed persons are not liable for basic medical insurance contributions.
Article 49 When an unemployed person dies while still a beneficiary of unemployment benefits, local regulations on welfare associated with death of an employed person shall serve as a reference with regard to payment to the survivors of a lump-sum funeral subsidy and bereavement allowance. The expenditures shall be covered by the unemployment insurance fund.
When a person dies and concurrently qualifies for a funeral subsidy under the basic old-age insurance, a funeral subsidy under work injury insurance, and a funeral subsidy under unemployment insurance, the survivors can only choose one of the three.
Article 50 An employer shall provide in a timely manner documentation on termination or rescinding of labour relations to unemployed persons, and present the list of unemployed persons to the social insurance agency within fifteen days as of termination or rescinding of their labour relations.
An unemployed person shall take the documentation provided by his or her employer on termination or rescinding of labour relations and proceed to the designated public employment agency to process unemployment registration in a timely manner.
An unemployed person shall present unemployment registration and personal identity document to the social insurance agency to process the claim for unemployment benefits. The duration for unemployment benefits shall be counted as of the date of unemployment registration.
Article 51 An unemployed person who is a beneficiary of unemployment benefits shall cease receipt of unemployment benefits and shall cease access to other benefits related to unemployment insurance when the person satisfies one of the following conditions:
(1) Taking up a new job;
(2) Enlisted for military service;
(3) Migrating overseas;
(4) Receiving a basic old-age pension; or
(5) Declining without justification a suitable job offer referred by or a training programme provided by the department or agency designated by the local People’s Government.
Article 52 The unemployment insurance relationship of a member who has worked across different pooling districts shall transfer together with the member, and the member’s lengths of contribution payment shall be cumulative.
Chapter VI Maternity Insurance
Article 53 Each employee shall enroll in the maternity insurance system. The employer shall make maternity insurance contributions as set by the State, and the employee is not liable for maternity insurance contributions.
Article 54 When the employer has made maternity insurance contributions, his or her employees shall be eligible for maternity benefits. The unemployed spouse of an employee shall be eligible for benefits related to maternity medical expenses in accordance with national provisions. The payment shall be made from the maternity insurance fund.
Maternity insurance benefits consist of maternity medical expenses and maternity allowances.
Article 55 Maternity medical expenses cover the following items:
(1) Medical expenses for child-bearing;
(2) Medical expenses for family planning; and
(3) Expenses for other items as prescribed by laws and regulations.
Article 56 An employee is eligible for maternity allowances in accordance with national provisions when the employee satisfies one of the following conditions:
(1) A child-bearing female worker taking maternal leave;
(2) Taking leave for an operation of family planning; or
(3) Any other circumstance prescribed by laws and regulations.
Maternity allowance shall be calculated and paid at the monthly mean wage of the prior-year of the employees from the unit where the beneficiary works.
Chapter VII Collection and Payment of Social Insurance Contributions
Article 57 An employer shall, within thirty days from the date of establishment of the entity, proceed with the business license, registration certificate or entity seal to the local social insurance agency to apply for social insurance registration. The social insurance agency shall complete the check and review process and issue social insurance registration certificate to the employer within fifteen days from receipt of the application.
When there are changes in the social insurance registration items of an employer, or the entity of an employer is terminated in accordance with law, the employer shall proceed to the social insurance agency to register the changes or cancel social insurance registration within thirty days from occurrence of the changes or cancellation of the entity.
Each administrative bureau for industry and commerce, department of civil affairs and public sector reform commission shall notify the social insurance agency in a timely manner of entity establishments and terminations; each department for public security shall notify the social insurance agency in a timely manner of citizen births and deaths, and of household registrations, transfers and cancellations.
Article 58 An employer shall, within thirty days after taking on labour, proceed to the social insurance agency to apply for social insurance registrations on behalf of the employees. For those whose social insurance registrations are not processed, the assessed scale of social insurance contributions shall be set by the social insurance agency.
The member who enrolls voluntarily in social insurance system as a proprietor of privately or individually-owned business with no hired labour, or a part-time worker who is not covered by social insurance system through his or her employer, or any other person in employment of flexible forms, shall apply for his or her social insurance registration with the social insurance agency.
The State provides each individual with a social security number valid across the whole country. The citizen’s identity number serves as his or her social security number.
Article 59 The People’s Governments at and above the county level shall devote more efforts for collecting social insurance contributions.
Collection of social insurance contributions shall be carried out in a consolidated way. The steps of implementation and the concrete approaches in this regard shall be regulated by the State Council.
Article 60 Each employer shall declare on its own and pay on time and in full social insurance contributions. The payment shall not be deferred, or lowered in amount or exempted unless due to lawful causes such as force majeure. Social insurance contributions payable by an employee shall be paid on his or her behalf by the employer through transfer from wage deduction. The employer shall notify each employee of details of social insurance contributions to his or her account on a monthly basis.
A member as proprietor of privately or individually-owned business with no hired labour, or part-time worker who is not covered by the social insurance system through his or her employer, or any other person in employment of flexible forms may pay social insurance contributions directly to a social insurance contributions collecting agency.
Article 61 Each social insurance contributions collecting agency shall collect social insurance contributions on time and in full according to law, and notify the employers and individuals concerned of their payments at regular intervals.
Article 62 When an employer fails to declare social insurance payables as prescribed, the payables by the employer shall be set as a 110% multiples of its prior-month payables. When the employer has completed a makeup payment declaration, the social insurance contributions collecting agency shall settle the accounts for the employer in accordance with relevant regulations.
Article 63 When an employer fails to pay on time and in full social insurance contributions, the social insurance contributions collecting agency shall compel the employer to pay or replenish the deficiency within the prescribed period.
When social insurance payables by the employer remain unpaid or deficient at the expiry of the prescribed period, the social insurance contributions collecting agency has the right to inquire from banks and other financial institutions regarding the employer’s bank accounts, and may apply to the relevant administrative department at or above the county level for a decision on capital transfer for social insurance contributions, and notify in writing the banks or other financial institutions where the employer has opened accounts to make the transfer for payment of social insurance contributions. When the balances in the employer’s accounts are less than the social insurance payables, the social insurance contributions collecting agency may require the employer to provide a guarantee, and sign an agreement on payment deferral.
When an employer fails to pay social insurance contributions in full and fails to provide a guarantee, the social insurance contributions collecting agency may request a people’s court to seize, seal up and sell at auction properties owned by the employer equivalent in value to the social insurance payables, and collect the auction earnings as social insurance contributions.
Chapter VIII Social Insurance Funds
Article 64 Social insurance funds consist of the basic old-age insurance fund, basic medical insurance fund, work injury insurance fund, unemployment insurance fund, and maternity insurance fund. Each fund shall have its own account, as corresponding to its social insurance category, and financial settlement of the accounts shall be kept within the category. The national standard accounting system shall apply herewith.
Social insurance funds are earmarked for intended purposes. Any organization or individual shall not usurp or divert for other purposes.
The basic old-age insurance fund shall be progressively put under nationwide pooling, and other social insurance funds shall be progressively put under social pooling at provincial level. The concrete timeframe and schedules shall be provided by the State Council.
Article 65 Social insurance funds shall maintain balance of payments through budgeting exercises.
The People’s Governments at and above the county level shall provide subsidies when there is a shortfall in social insurance funds to cover obligations.
Article 66 Budget for a social insurance fund shall be set up at the pooling level. Each social insurance fund budget shall correspond to its insurance category, and be compiled and formulated in separation from each other.
Article 67 Compilation, review and approval of budget and final account proposals for a social insurance fund shall be governed by laws and by regulations of the State Council.
Article 68 Social insurance funds shall be deposited into dedicated public financial accounts, and the administrative approaches shall be regulated by the State Council.
Article 69 With assured safety as a prerequisite, social insurance funds shall be invested and managed following rules set by the State Council so as to achieve maintenance and accrual of capital values of the funds.
Social insurance funds shall be excluded from investments and operations violating the rules, shall not be utilized to offset other government budgets, shall not be spent on building or altering offices, nor shall they be used to cover personnel expenses, operational and administrative costs. The funds shall not be embezzled for other purposes in violation of the laws and administrative regulations.
Article 70 Social insurance agencies shall provide at regular intervals to the public information concerning social insurance coverage, and incomes and expenditures, balances and investment returns of social insurance funds.
Article 71 The State establishes the National Social Security Fund, which is financed by fiscal allocation of the Central Government and other resources approved by the State Council. The fund is meant for supplementing and adjusting social security expenditures. The National Social Security Fund shall be put to the National Social Security Fund administrative and operating agency for management and fund operations. Maintenance and accrual of capital values of the fund shall be realized with assured safety as a prerequisite.
The National Social Security Fund shall provide at regular intervals to the public information concerning revenues and expenditures, management and investment operations of the Fund. The department of finance, social insurance administrative department and audit office under the State Council discharge supervision of the fund in relation to its revenues and expenditures, management and investment operations.
Chapter IX Social Insurance Operations
Article 72 Each pooling district shall set up a social insurance agency. A social insurance agency may, given its workload, set up branches and service network points within the pooling district with approval from the local social insurance administrative department and the local public sector reform commission.
Personnel expenses of a social insurance agency, its essential operational costs and administration expenses shall be appropriated from the government at the same administrative level as the agency in accordance with national provisions.
Article 73 Each social insurance agency shall establish and improve the institution for its business operations, finance, safety and risk management.
Social insurance agencies shall pay social insurance benefit obligations on time and in full.
Article 74 Social insurance agencies collect data required for their work on social insurance through business operations, statistics, and surveys. The employers and individuals concerned shall provide data faithfully and in a timely manner.
A social insurance agency shall create files in a timely manner for an employer, keep comprehensive and accurate records of the insured members and social insurance contributions, and guard in a safe way original proofs of social insurance registrations and declarations of contributions and accounting invoices of the payments made.
A social insurance agency shall keep an updated, comprehensive and accurate record for each insured member with regard to the contributions paid by the member and by the employer on his or her behalf, his or her social insurance benefit credits, and deliver to the member free of charge his or her credit account at fixed intervals.
An employer and an individual member may inquire about and verify their records of contributions and social insurance benefit credits with the social insurance agency free of charge, and demand from the social insurance agency social insurance consultancy and other services.
Article 75 In line with the overall design of the State, the National Social Insurance Information System shall be jointly constructed by the People’s Governments at and above the county level, following the principle of jurisdiction-based responsibility system.
Chapter X Social Insurance Supervision
Article 76 The Standing Committee of the People’s Congress at every level shall be briefed by the People’s Government at its corresponding level and review its report on income and expenditure accounts, management, investment operations and supervisions of social insurance funds, shall organize enforcement inspections on this law and discharge its supervisory functions by law.
Article 77 The social insurance administrative department of the People’s Government at or above the county level shall devote more vigorous efforts for supervision and inspection on compliance by employers and individuals with social insurance laws and regulations.
When a social insurance administrative department performs an inspection or supervision, the employers and individuals questioned shall faithfully provide documents and data related to social insurance, and shall not refuse inspection nor provide fraudulent information or practice under-reporting.
Article 78 Finance departments and audit offices within their respective jurisdiction shall carry out supervisions on social insurance funds in terms of income and expenditure accounts, management and investment operations.
Article 79 Social insurance administrative departments shall exercise supervisions and inspections over social insurance funds in terms of income and expenditure accounts, management and investment operations. When an administrative department identifies a problem, it shall put forward rectifying recommendations, and make a punitive decision or recommend a punitive proposal to the relevant authorities according to law. Inspection reports on social insurance funds shall be provided to the public at regular intervals.
A social insurance administrative department shall have the right to adopt the following measures when discharging supervision and inspection over social insurance funds:
(1) Accessing, recording and copying materials related to income and expenditure accounts, management and investment operations of social insurance funds, and sealing materials liable to be transferred, concealed or destroyed for the sake of safekeeping;
(2) Questioning the employers and individuals involved in an investigation, and demanding them to explain and provide relevant evidence on the matters under investigation; and
(3) Interdicting and ordering for rectification the acts of concealing, transferring, misappropriating or embezzling social insurance funds.
Article 80 The People’s Government in a pooling district shall establish a social insurance supervisory committee, composed of representatives of employers, insured persons and trade unions, and professional experts. The committee shall have full knowledge and conduct analysis of social insurance funds in terms of income and expenditure accounts, management, and investment operations. The committee can provide consultancies and recommendations on social insurance affairs, and perform public oversight.
A social insurance agency shall brief the social insurance supervisory committee at regular intervals on performance of social insurance funds, and report the funds’ income and expenditure accounts, management and investment operations. A social insurance supervisory committee can hire an accounting firm to conduct annual audits and specified audits for income and expenditure accounts, management and investment operations of social insurance funds. The auditing reports should be provided to the public at regular intervals.
When a social insurance supervisory committee identifies a problem associated with income and expenditure accounts, management, and investment operations of social insurance funds, it shall have the right to put up rectifying recommendations, and shall have the right to recommend a punitive measure stipulated in law to the authoritative department for any unlawful act of a social insurance agency and its employees.
Article 81 Social insurance administrative departments and other administrative departments concerned, social insurance agencies, social insurance contributions collecting agencies and their employees shall keep secret the data of the employers and the individuals according to law, and shall not disclose data in any manner.
Article 82 Any organization or individual shall have the right to report or complain about any non-compliance of social insurance laws and regulations.
Any social insurance administrative department, health administrative department, social insurance agency, social insurance contributions collecting agency, finance department and audit office shall deal with the complaints or reporting that fall under its jurisdiction according to law; for a case beyond its jurisdiction, a notification in writing together with the documents received shall be passed on to the proper authoritative department or agency to address. The proper authoritative department or agency shall handle the complaints and reporting in a timely manner, and any act of shifting of responsibility shall be prohibited.
Article 83 When an employer or individual believes that their legitimate rights have been violated by an act or acts of a social insurance contributions collecting agency, the employer or individual in question can apply for an administrative review or initiate administrative proceedings according to law.
For any non-compliance by a social insurance agency with regard to social insurance registration, calculation and determination of social insurance contributions, paying social insurance benefit obligations, processing transfer or renewal of social insurance relationships, or any other act violating social insurance rights, the employer or individual concerned can apply for an administrative review or initiate administrative proceedings according to law.
When a dispute on social insurance occurs between an individual and his or her employer, the person in question can apply for mediation, arbitration or initiate court proceedings according to law. When an employer infringes upon the social insurance rights of an individual, the individual in question may also demand a lawful settlement by the social insurance administrative department or social insurance contributions collecting agency.
Chapter XI Legal Liabilities
Article 84 When an employer fails to process social insurance registration, the social insurance administrative department shall deliver to the employer concerned an order for rectification within a prescribed period. When rectification does not occur at the expiry of the prescribed period, the employer shall be liable for a fine in excess of its assessed social insurance contribution but less than its triple, and the principals who bear direct responsibilities and other persons with direct responsibilities shall be liable for a fine over 500 but less than 3000 Yuan RBM.
Article 85 When an employer refuses to provide documentation on termination or rescinding of labour relations, a sanction shall be given in accordance with the Labour Contract Law of the People’s Republic of China.
Article 86 When an employer fails to pay social insurance contributions on time and in full, the social insurance contributions collecting agency shall place an order with the employer demanding full payment within a prescribed period, and an overdue payment fine at the rate of 5 per 10,000 shall be levied as of the date of indebtedness. When the payment is not made at the expiry of the prescribed period, a fine above the overdue amount but less than its triple shall be demanded by the authoritative administrative department.
Article 87 When a social insurance service agency such as a social insurance agency, medical institution, or pharmaceutical entity defrauds payment from social insurance funds by cheating, fake documentation or other means, the social insurance administrative agency shall order a return of the defrauded fund, and demand a sanction larger than double but lower than quintuple of the amount defrauded. If the agency involved is one with a contract for provision of social insurance services, such contract shall be terminated; if the principals who bear direct responsibilities and other persons with direct responsibilities are licensed, their licenses shall be revoked according to law.
Article 88 For any offence of making fraudulent claims for social insurance benefits through cheating, fake documentation or other means, the social insurance administrative department shall order a return of the social insurance benefits defrauded, and levy a fine larger than double but less than quintuple of the amount defrauded.
Article 89 When a social insurance agency and its staff commit an offence included in the following list, the social insurance administrative department shall order for rectification. When damage has been done to social insurance funds, an employer or an individual, liability for damage shall be assumed by the person(s) responsible according to law. The principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law.
(1) Not discharging social insurance statutory functions;
(2) Not depositing social insurance funds into dedicated financial accounts;
(3) Underpaying or refusing to pay on time social insurance benefit obligations;
(4) Missing or interpolating social insurance data such as contribution records, payment records of social insurance benefits, and individuals’ credit records; or
(5) Any other non-compliance of social insurance laws and regulations.
Article 90 When a social insurance contribution collecting agency amends without authorization the calculating base and rate of social insurance contributions, which leads to under or over collection of social insurance contributions, the authoritative administrative department shall order for payment of the overdue or return of the overpayment. The principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law.
Article 91 For any act in violation of this law involving concealing, transferring, misappropriating or embezzling social insurance funds, or engaging in investment operations in defiance of rules, the social insurance administrative department, finance department, audit office shall give an order for repayment of the misappropriated funds. If any illegal gains have been obtained, the gains shall be confiscated. The principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law.
Article 92 When a social insurance administrative department or any other relevant administrative department, social insurance agency, social insurance contributions collecting agency and its staff disclose illegally information concerning an employer or an individual, the principals who bear direct responsibilities and other persons with direct responsibilities shall be sanctioned by law. If damage has been done to the employer or individual, liability for damage shall be assumed by the person(s) responsible according to law.
Article 93 The public officials who abuse their power, neglect their duties, or engage in fraudulent acts for personal gains shall be sanctioned according to law.
Article 94 Any offence in violation of this law amounting to a crime shall be liable for criminal penalty.
Chapter XII Supplementary Provisions
Article 95 Rural residents who migrate to work in urban areas shall enroll in the social insurance system in accordance with this law.
Article 96 When land acquisition is carried out on properties collectively owned by a farming community, a full payment of social insurance expenses shall be arranged for the farmers who lose their land, and the farmers in question shall be covered in relevant social insurance schemes in accordance with the regulations of the State Council.
Article 97 Foreign nationals who are employed in the Chinese territory shall enroll in the social insurance system in accordance with this law.
Article 98 This law shall enter into force on July 1, 2011.
Reference Link: https://www.cecc.gov/resources/legal-provisions/social-insurance-law-of-the-peoples-republic-of-china
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
Individual Income Tax Law of the People's Republic of China
Article 1 An individual who is domiciled in China, or an individual who is not domiciled in China but has resided in China for an aggregate of 183 days or more within a tax year, shall be regarded as a resident individual. Income received by a resident individual from within China or overseas shall be subject to individual income tax pursuant to the provisions of this Law.
An individual who is not domiciled in China and does not reside in China, or an individual who is not domiciled in China but has resided in China for less than an accumulated 183 days within a tax year, shall be regarded as a non-resident individual. Income received by a non-resident individual from within China shall be subject to individual income tax pursuant to the provisions of this Law.
A tax year shall start from January 1 and end on December 31 within a calendar year.
Article 2 The following categories of individual income shall be subject to individual income tax:
(1) Income from salary and wages;
(2) Income from remuneration for personal services;
(3) Income from author’s remuneration;
(4) Income from royalties;
(5) Income from business operation;
(6) Income from interest, dividends or bonuses;
(7) Income from leasing of assets;
(8) Income from transfer of assets; and
(9) Incidental income.
For forms of income (1) through (4) in the preceding paragraph (hereinafter collectively referred to as “Comprehensive Income”) earned by a resident individual, they shall be aggregated on a tax year basis to calculate the individual income tax payable while the same earned by a non-resident individual shall be calculated separately on a monthly or transaction basis. For forms of income (5) through (9) in the preceding paragraph, the individual income tax payable shall be calculated separately pursuant to the provisions of this Law.
Article 3 Individual income tax rates:
(1) For comprehensive income in excess of the specified amounts, progressive tax rates ranging from 3 percent to 45 percent shall apply (see schedule of tax rates attached);
(2) For income from business operation in excess of the specified amounts, progressive tax rates ranging from 5 percent to 35 percent shall apply (see schedule of tax rates attached); and
(3) For income from interest, dividends or bonuses, income from leasing of assets, income from transfer of assets, and incidental income, a flat tax rate of 20 percent shall apply.
Article 4 The following categories of individual income shall be exempted from individual income tax:
(1) Prize money for achievements in such fields as science, education, technology, culture, public health, sports and environmental protection, granted by at least people’s governments at the provincial level, ministries and commissions under the State Council, or corps of the Chinese People’s Liberation Army, or by foreign or international organizations;
(2) Interest on the national debt or on financial bonds issued by the State;
(3) Subsidies and allowances paid according to the uniform provisions issued by the State;
(4) Welfare benefits, benefits for the family of the deceased or disabled, and relief payments;
(5) Insurance compensation;
(6) Military severance pay, demobilization pay and gratuities for army personnel;
(7) Settlement pay, severance pay, basic pension or retirement pay, payments and living allowances for retired veteran cadres, that are paid to cadres and employees according to the uniform provisions issued by the State;
(8) Income of diplomatic representatives, consular officers and other personnel of foreign embassies and consulates to China, which, pursuant to provisions of relevant laws, shall be exempted from tax;
(9) Tax-exempt income stipulated under the international conventions to which the Chinese government is a member, or agreements which the Chinese government has signed; and
(10) Other tax-exempt income as stipulated by the State Council.
Any tax exemption provisions aforementioned in item (10) of the preceding paragraph shall be submitted by the State Council to the Standing Committee of the National People’s Congress for the record.
Article 5 Individual income tax may be deducted in any of the following circumstances. The specific range and period of validity of the tax reduction shall be determined by the people’s government of a province, autonomous region or municipality directly under the Central Government and be submitted to the Standing Committee of the People’s Congress at the same level for the record:
(1) Income received by disabled persons, elderly persons with no family, or the close family of martyrs; or
(2) Individuals suffering heavy losses as a result of natural disasters;
The State Council may stipulate other circumstances for tax deduction, and the stipulation shall be submitted to the Standing Committee of the National People’s Congress for the record.
Article 6 The amount of taxable income shall be calculated as follows:
(1) For comprehensive income received by a resident individual, the amount of taxable income shall be the balance after deduction of RMB 60,000 yuan, special deductions, itemized deductions for specific expenditures, and other deductible items determined pursuant to law, from the modified income in a tax year.
(2) For income received from salary and wages by a non-resident individual, the amount of taxable income shall be the balance after deduction of RMB 5,000 yuan from his or her monthly income. For income from remuneration for personal services, author’s remuneration or royalties, the taxable income shall be the amount received in a single payment.
(3) For income from business operation, the amount of taxable income shall be the balance after deduction of costs, expenses and losses from the gross income in a tax year.
(4) For income from leasing of assets, the amount of taxable income shall be the balance after deduction of RMB 800 yuan from the amount received in a single payment not exceeding RMB 4,000 yuan; or after deduction of 20 percent from the amount for a single payment of RMB 4,000 yuan or more.
(5) For income from transfer of assets, the amount of taxable income shall be the balance after deduction of the original value of the asset and reasonable expenses, from the income gained from such transfer.
(6) For interest, dividends, bonuses, and incidental income, the amount of taxable income shall be the full amount received in each payment.
The modified income from remuneration for personal services, author’s remuneration and royalties shall be the balance after deduction of 20 percent from the income received. Income from author’s remuneration shall be further reduced and taken as 70 percent of the amount calculated from above.
Amounts donated out of individual income to education, poverty alleviation or other public welfare undertakings, may be deducted from the taxable income, so long as the donation does not exceed 30 percent of the declared taxable income. Where the State Council stipulates that the full amount of a donation made to public welfare undertakings is deducted from the taxable income, such provisions shall prevail.
Special deductions stipulated in Subparagraph (1) of the first paragraph of this Article shall include basic old-age insurance, basic medical insurance, unemployment insurance and other social insurance contributions, as well as housing provident fund contributions made by resident individuals in accordance with the scope and standards provided by the State; itemized deductions for specific expenditures shall include expenditure on children’s education, his own continuing education, medical treatment for serious illness, housing loan interest or housing rent, and supporting the elderly, whose details in scope, standards and implementation steps shall be determined by the State Council, and then be submitted to the Standing Committee of National People’s Congress for the record.
Article 7 Where a resident individual obtains income from outside of China, individual income tax paid overseas can be credited against their tax payable in China; however, the tax credit may not exceed the individual income tax that would be payable on the foreign income if calculated in accordance with this Law.
Article 8 In any of the following circumstances, the tax authorities have the power to make a tax adjustment by using reasonable methods:
(1) Where a transaction between an individual and his or her related party that is not in accordance with the arm’s length principle has been completed, without good cause, and led to decreased tax payable for the individual or his/her related party;
(2) Where a resident individual, who by himself or jointly with a resident enterprise controls an enterprise that was established in a country (region) where the effective tax burden is distinctly low, does not distribute the profits attributable to the resident individual or reduces the distribution of those profits, without a reasonable cause of operation or management; or
(3) Where an individual enters into an arrangement without a reasonable commercial purpose, leading to inappropriate tax benefits.
Where additional tax payment is required after tax adjustment made by a tax authority under the preceding paragraph, the payment shall be made, with late payment surcharge levied according to law.
Article 9 The taxpayer, for individual income tax purposes, shall be the person who receives the income. Organizations or individuals that make a payment of income shall be the withholding agents.
Where a taxpayer has the Chinese Citizens’ Identity Number, his Identity Number shall be the taxpayer identification number; where a taxpayer has no Chinese Citizens’ Identity Number, the tax authority shall issue a taxpayer identification number to the taxpayer. A taxpayer must provide his taxpayer identification number to the withholding agent when the latter withholds and pays the tax.
Article 10 In any of the following circumstances, a taxpayer shall file a tax return in accordance with the law:
(1) Where the taxpayer obtains comprehensive income for which the annual tax reconciliation return is required;
(2) Where the taxpayer obtains taxable income but there is no withholding agent;
(3) Where the taxpayer obtains taxable income but the withholding agents has failed to withhold and pay the tax;
(4) Where the taxpayer obtains income from overseas;
(5) Where the taxpayer emigrates to another country and cancels his Chinese household registration;
(6) Where a non-resident individual obtains salary and wages from two or more sources within China; or
(7) Any other circumstances stipulated by the State Council.
The withholding agent shall, in accordance with the national rules, withhold and pay tax in full for all its taxpayers, and furnish each individual taxpayer with information on his individual income and the tax withheld and paid, etc.
Article 11 Where a resident individual obtains comprehensive income, his individual income tax shall be calculated on an annual basis. Where there is a withholding agent, the withholding agent shall withhold and prepay tax on a monthly basis or when the taxable income arises; where the annual tax reconciliation return is needed, it shall be filed within the period from March 1 to June 30 of the year following that in which the income was obtained. Regulation for withholding and prepayment shall be formulated by the department under the State Council responsible for tax administration.
Where a resident individual provides the withholding agent with information on his itemized deductions for specific expenditures, the withholding agent shall deduct relevant items from the resident individual’s taxable income in accordance with regulations when making the monthly withholding and prepayment, and may not refuse the deduction.
Where a non-resident individual obtains income from salary or wages, remuneration for personal services, author’s remuneration or royalties and where there is a withholding agent, the withholding agent shall withhold and pay tax on a monthly basis, or when taxable income arises. Annual tax reconciliation return shall not be required for that case.
Article 12 Where a taxpayer obtains income from business operation, the individual income tax shall be calculated on an annual basis. The taxpayer shall file the tax return for such income with the tax authority and prepay the tax within 15 days after the end of each month or quarter. The annual tax reconciliation return shall be filed by March 31 of the following year after obtaining the income.
Where a taxpayer obtains income from interest, dividends and bonuses, leasing of assets, transfer of assets or incidental income, the individual income tax shall be calculated on a monthly basis or when the taxable income arises. Where there is a withholding agent, the withholding agent shall withhold and pay tax on a monthly basis or as and when the taxable income arises.
Article 13 Where a taxpayer obtains taxable income but there is no withholding agent, the taxpayer shall file the tax return with the tax authority and pay tax by the 15th day of the month following that in which the income was obtained.
Where a taxpayer obtains taxable income and the withholding agent has failed to withhold and pay tax, the taxpayer shall pay the tax before June 30 of the year following that in which the income was obtained. Where a tax authority sets a time limit for the tax payment, the taxpayer shall pay within the allotted time.
Where a resident individual obtains income from overseas, he or she shall declare such income within the period from March 1 to June 30 of the year following that in which the income was obtained.
Where a non-resident individual obtains salary and wages from two or more sources within China, he shall declare such income by the 15th day of the month following that in which the income was obtained.
Where a taxpayer cancels the Chinese household registration as a result of emigration, he shall complete tax settlement and clearance before de-registration.
Article 14 Where tax is withheld by a withholding agent, whether on a monthly or transaction basis , it shall be turned over to the state treasury by the 15th day of the month following that in which it was withheld. The tax return for individual income tax withheld shall also be filed with the tax authority.
Where a taxpayer files an annual tax reconciliation in order to obtain a tax refund or where a withholding agent does so for the taxpayer, the tax authority shall deal with the tax refund after review and confirmation in accordance with the relevant regulations on administration of the state treasury.
Article 15 The public security authorities, the People’s Bank of China, financial regulator and other relevant departments shall assist the tax authorities in verifying taxpayers’ identities and information of their financial accounts. Departments of education, health, medical security, civil affairs, human resources and social security, housing and urban-rural development, public security, the People’s Bank of China, financial regulator and other relevant departments shall provide tax authorities with information on itemized deductions for specific expenditures of taxpayers, including expenditures on their children’s education, their own continuing education, medical treatment of a serious illness, housing loan interest or housing rent, and supporting the elderly.
For transfer of immovable property by individuals, the tax authorities shall verify the payable individual income tax based on relevant information such as the registration for the immovable property. Where a transfer of immovable property is being registered, the registration authority shall examine the certificate for payment of individual income tax on the transfer. Where a transfer of equity shares is being registered, the registration authority for market players shall examine the certificate for payment of individual income tax on the share transfer.
The relevant departments shall incorporate information on compliance with this Law by taxpayers and withholding agents into the credit information system in accordance with law, and implement joint incentives or sanctions.
Article 16 All forms of income shall be calculated in RMB. Where an income is paid in a foreign currency other than RMB, it shall be taxed after being converted into RMB based on central parity rate.
Article 17 A handling fee of 2 percent of the amount of tax withheld shall be paid to withholding agents.
Article 18 The levy, reduction and cessation of levying individual income tax on interest from saving deposits, as well as specific measures thereof, shall be stipulated by the State Council, and be submitted to the Standing Committee of National People’s Congress for the record.
Article 19 Where a taxpayer, withholding agent or a tax authority or a staff member thereof, violates this Law, its legal liability shall be investigated in accordance with the Law of the People’s Republic of China on the Administration of Tax Collection and other relevant provisions of laws and regulations.
Article 20 The administration of the collection of individual income tax shall be subject to provisions of this Law and the Law of the People’s Republic of China on the Administration of Tax Collection.
Article 21 The State Council shall, pursuant to provisions of this Law, formulate regulations for its implementation.
Article 22 This Law shall go into effect from the date of its promulgation.
Reference Link: Individual Income Tax
Disclaimer: This content is provided for general informational purposes only and does not constitute legal advice.
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Regulation Updates in China
Discover the latest employment and compliance updates in China — helping you stay ahead in a changing regulatory landscape.
Interim Provisions on the Protection of the Basic Rights and Interests of Over-Age Workers
What it is: The Interim Provisions on the Protection of the Basic Rights and Interests of Over-Age Workers establish new requirements for employers when hiring Over-Age Workers, with an effective date in July 2026.
What it changes: Employers must sign written work agreements with Over-Age Workers, ensure remuneration is not lower than the local minimum wage, include them in work-injury insurance, and reasonably limit working time.
Who is affected:
- Employers that hire Over-Age Workers
What employers should do:
- Ensure a written work agreement is signed with Over-Age Workers
- Maintain remuneration at least equal to the local minimum wage
- Include Over-Age Workers in work-injury insurance
- Reasonably limit the working time of Over-Age Workers
Notes: Effective month: 2026-07. Manual verification recommended.
Implementation Plan for Accelerating the Establishment of the Long-term Care Insurance System
What it is: The implementation plan requires participants to join and fund a new national Long-term Care Insurance scheme, creating new private employer obligations for social contributions and payroll withholding that EORs and payroll providers must operationalize.
What it changes: Employers and employees must participate in and jointly fund the new Long-term Care Insurance. This creates private employer obligations for social contributions and payroll withholding that must be implemented by EORs and payroll providers.
Who is affected:
- Employers
- Employees
What employers should do:
- Prepare to implement social contribution payments and payroll withholding for the new Long-term Care Insurance through EORs and payroll providers.
- Coordinate with payroll providers to ensure the new scheme is operationalized.
Notes: Effective month: 2026-03. Manual verification recommended.
Notice of the Jin'an District Human Resources and Social Security Bureau on Agreeing to the Implementation of an Irregular Working Hours System and a Comprehensive Calculation Working Time System for Certain Positions of Fuzhou Meike Food Co., Ltd.
What it is: The Jin’an District Human Resources and Social Security Bureau approved that certain positions at Fuzhou Meike Food Co., Ltd. may adopt an irregular working hours system and a Comprehensive Calculation Working Time system.
What it changes: This approval creates employer obligations under working time rules for scheduling and overtime accounting for the specified employees, effective March 2026.
Who is affected:
- Certain positions at Fuzhou Meike Food Co., Ltd. designated by the approval.
What employers should do:
- Prepare to apply an irregular working hours system and a Comprehensive Calculation Working Time system for the specified employees starting 2026-03.
Notes: Effective month: 2026-03. Manual verification recommended.
Notice on Carrying Out the 2026 'Spring Warm Migrant Workers' Service Action
What it is: A national-level Notice directing a 2026 Spring Warm Migrant Workers service action to support migrant workers around the Spring Festival.
What it changes: It mandates transport and point-to-point travel support, conducts concentrated online/offline recruitment drives, and implements a training-to-placement model described as ‘job-demand + skills training + skills assessment + employment service,’ along with health outreach and strengthened labor-rights protection for migrant workers.
Who is affected:
- Workers or employers explicitly mentioned or clearly implied by the policy summary.
What employers should do:
- Provide or facilitate access to transport and point-to-point travel support as part of onboarding or worker services.
- Participate in or support the collaboration for recruitment drives (online and offline).
- Align with the training-to-placement model components: address job demand, offer or support skills training and skills assessment, and connect workers with employment services.
- Support health outreach initiatives and reinforce labor-rights protection efforts for migrant workers.
Notes: Effective month: 2026-01. Manual verification recommended.
