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ARTICLE · 01 DECEMBER 2010

Changes Introduced by the New PRC Social Insurance Law

Mayer Brown
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The new PRC Social Insurance Law (the Social Insurance Law) was promulgated by the 11th session of the Standing Committee of the National People's Congress on 28 October 2010 after four readings and will take effect as of 1 July 2011.

ChinaEmployment and HR
Duncan Abate
Duncan Abate
Susan Deng
Susan Deng
Hong Tran
Hong Tran
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Originally published 1 December 2010

Keywords: PRC social insurance law, Social Insurance Law, key changes

The new PRC Social Insurance Law (the Social Insurance Law) was promulgated by the 11th session of the Standing Committee of the National People's Congress on 28 October 2010 after four readings and will take effect as of 1 July 2011. This article takes a look at some of the main changes under this new social insurance regime and analyses its impact on HR management for employers operating in the PRC.

Overview of the New Law

The Social Insurance Law regulates five basic social security insurances, i.e. basic pension, basic medical insurance, work-related injury insurance, unemployment insurance and maternity insurance. It is the first comprehensive law of PRC to regulate the five social insurance schemes and associated administrative issues, such as collection of social insurance premiums, management of social insurance funds and supervision of social

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