Shenzhen Adjusts Social Insurance Policy

Jan. 23 – Shenzhen’s Social Insurance Bureau recently released a circular concerning social insurance payments in the city, which came into effect from January 1, 2013. The circular provides new policies regarding the payment of pension insurance and unemployment insurance in Shenzhen, and cancels over-age pension insurance contributions for individuals with Shenzhen hukou.

Detailed information can be found below.

Pension Insurance

Shenzhen Hukou Individuals holding a Shenzhen hukou are entitled to the standard pension insurance, plus a local supplementary pension.

The social insurance contribution base is the monthly salary of an employee, but it cannot be higher than 300 percent of the average monthly salary of an employee in the city during the previous year, and cannot be lower than the city’s minimum monthly wage level.

• Monthly Pension Payment = 22 percent of contribution base (14 percent employer, 8 percent employee)

Non-Shenzhen Resident Individuals working in Shenzhen without a local hukou are entitled to the standard pension insurance, but not the additional local supplementary pension.

The social insurance contribution base is the monthly salary of an employee, but it cannot be higher than 300 percent of the average monthly salary of an employee in the city during the previous year, and cannot be lower than the city’s minimum monthly wage level.

• Monthly Pension Payment = 21 percent of contribution base (13 percent employer, 8 percent employee)

Unemployment Insurance

The contribution formula for unemployment insurance is:

• Minimum monthly wage of Shenzhen × 3 percent (2 percent paid by employer and 1 percent paid by employee)

The payment method for work-related injury insurance remains the same and over-age pension insurance contributions have been cancelled for individuals holding a Shenzhen hukou. New regulations concerning medical insurance and maternity insurance contributions are currently under revision, and the payment of these two insurances should still be carried out according to the existing methods.

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