At Work in Beijing


Unemployment Benefits in Beijing


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The current rate of unemployment in China is reported at 4.3 percent. However, young graduates are having a very difficult time finding work and are one of the largest groups if unemployed, and they are unprotected by unemployment insurance. Besides benefits to provide cost of living, the fund seeks to encourages re-employment.

The Beijing Municipal Bureau of Labor and Social Security oversees the fund and determines benefits for the city.

Contributions

There are several contributes to the Unemployment Insurance fund. Employers are the largest contributor and are required to pay in all major cities. Most cities also require a contribution from the employee.

    Contributes
  • Unemployment Insurance premium paid by the employer;
  • Unemployment Insurance premium paid by the employee;
  • Interest of the Unemployment Insurance fund;
  • Late fee for the Unemployment Insurance payment;
  • Fiscal subsidies;
  • other funds that are incorporated into the Unemployment Insurance fund according to the law.

The part of premium covered by the employer will be deducted from the employer's bank account and processed by the bank every month on behalf of the social insurance processing institution. The employee's contributions are automatically deducted via social security payments from wages.

Benefits

The level of benefit is set between the minimum wage and the minimum living allowance by individual provinces, autonomous regions and municipalities. It is usually the amount of minimum wage for that area. In Beijing, that is 1,160 RMB per month.

In the event an individual becomes unemployed, they will be able to make a claim to receive unemployment benefits.

    They must:
  • Be aged 16 and older
  • Made contributions for a period of at least one year to receive benefits.
  • Have non-agricultural residence card
  • Be able to work
  • Unemployment is not voluntary
  • Unemployment has been registered with the local labor exchange
  • Application for re-employment completed

The amount received is a fixed amount unrelated to the salary received by the individual previously or the amount of accumulated contribution. The benefits can be received for a maximum of 24 months.


Update 12/05/2011

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