Social Insurance in Shanghai

Social Insurance in Shanghai

In this post, social insurances indicates  employment related social insurances only. (There are also other social insurances in China, which may be related to farmers or students.)

1. Defination of Social Insurance System

It is a social security system built by compulsive law to protect labourer when they are getting old, sick, unemployed, etc.

2. Types of Social insurance

Five types:  employment injury insurance, basic endowment Deluxe Mechanical Bull insurance, medical  insurance, unemployed insurance and maternity insurance.

3. Types of Workers

In Shanghai, with “hu kou”(户口), the policy divides workers into  local workers and migrant worker, and migrant east jump worker could subdivide into City&Town migrant worker and rural migrant worker.

All kinds of  workers has at least three kinds of social insurance-employment injury insurance,  endowment insurance and medical insurance. Local worker and City & town migrant workers (16-45 years old ) may have other 2 kinds of social insurances that mentioned above.

4.The difference of different types of workers when paying social insurance

The Caculation of “Social insurance” could  be applied to the fomula:Payment base* percentage (provided by local government)

(1)Comprehensive Insurance

It’s a type of social insurance for migrant workers, especially for rural migrant workers. The employer shall pay all of it.

Payment base of Comprehensive Insurance=Shanghai employees’ average monthly income of last year * 60%=3896RMB(average monthly salary of year 2010)*60%=2338RMB


Thus, the comprehensive insurance =2338RMB*12.5%=293RMB

(2) City Social Insurance

Except for rural migrant workers, other kinds of worker may be covered by City social insurance or town social insurance. If the company is registered at a town of Shanghai, then the workers of it could only have town social insurance; and if the company is registered at downtown, then the workers shall have city social insurance.

The way of caculation:

First of all, payment base of city social insurance shall be limited to a range of :

Shanghai employees’ average monthly income of last year * 60%  ~Shanghai employees’  average monthly income of last year* 300%

( It is from 2338 RMB to 11688RMB between  April 1st 2011 and March 31st 2012  )

Secondly, Payment base shall also be equal to your actual average monthly income of last year

Thirdly, following are the percentage employer and employee shall pay for city social insurance.

Social Insurance Paid by Employer Paid by employee
Endowment Insurance 22% 8%
Medical Insurance 12% 2%
Unemployed Insurance 2% 1%
Maternity Insurance 0.5%  -
Employment Injury Insurance 0.5%  -

(3)Town Social Insurance

Payment base=Shanghai employees’ average monthly income of last year * 60%=2338RMB

Percentage=25%( Employer 25%, Employee o%)

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