Provisions on Unemployment Insurance for Staff and Workers of State-owned Enterprises
Provisions on Unemployment Insurance for Staff and Workers of State-owned Enterprises
Provisions on Unemployment Insurance for Staff and Workers of State-owned Enterprises
Order of the State Council [1993] No.110
April 12, 1993
Chapter I General Provisions
Article 1 These Provisions are formulated in order to improve the labor system of State-owned enterprises, guarantee a minimum standard of living for the staff and workers waiting for employment, and maintain social stability.
Article 2 The "staff and workers waiting for employment" referred to in these Provisions shall be the staff and workers of the State-owned enterprises (hereinafter referred to as the "Enterprises"), who fit the following criteria:
1. Staff and workers of the Enterprises which have legally declared bankruptcy;
2. Staff and workers of the Enterprises facing bankruptcy laid off during the statutory streamlining period;
3. Staff and workers of the Enterprises closed or dissolved in accordance with relevant provisions of the State;
4. Staff and workers laid off in periods during which the Enterprises ceased production in order to be streamlined in accordance with relevant provisions of the State;
5. Staff and workers who have terminated or canceled their labor contracts;
6. Staff and workers who have been dismissed or fired by the Enterprises; or
7. Other staff and workers entitled to unemployment insurance in accordance with the laws and provisions or the provisions of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government.
Article 3 Unemployment insurance shall be closely incorporated with such employment services as vocational introductions, employment training and self-reliance, and shall be organized in an overall plan.
Chapter II Raising and Management of the Unemployment Insurance Fund
Article 4 The resources of the unemployment insurance funds shall come from the following sources:
1. Unemployment insurance premiums paid by the Enterprises;
2. The proceeds of the interest accrued by the unemployment insurance premiums; and
3. Financial subsidies.
Article 5 The Enterprises shall pay unemployment insurance premiums on the basis of 0.6% of the payroll of all staff and workers. Where unemployment insurance funds are insufficient, or where there is a cash surplus in such unemployment insurance funds, upon the approval by the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government, such premiums paid by the Enterprises shall be reasonably increased or reduced.
However, the maximum amount of such premiums shall not exceed 1% of the payroll of all staff and workers of the respective Enterprises.
Unemployment insurance premiums shall be paid before the Enterprises pay their income taxes, and shall be withheld on a monthly basis by the banks in which the Enterprises open their accounts.
Article 6 Unemployment insurance premiums paid by the Enterprises shall be transferred into "unemployment insurance fund special accounts" opened in banks by insurance
institutions in the locales of the Enterprises, deposited into banks as special deposits, and spent for authorized purposes only.
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