Under the planned economy, government took care of the pensions,
medical services and other benefits of all civil servants, and
staff and workers of enterprises and institutions. Anyone employed
by a state enterprise or institution could expect life-long
security, even if at a low level. As Chinese society ages, the
number of retirees is increasing, some organizations having more
pensioners than workers on their pay-roll, representing a very
great burden. Since the 1990s, China has actively pursued reform of
the old-age, unemployment and medical insurance systems. The State
Council has promulgated the Regulations on Unemployment Insurance,
the Interim Regulations on the Collection of Social Insurance
Premium, and the Regulations on Guaranteeing Urban Residents'
Minimum Standard of Living, providing legal guarantee for the
implementation of social security system. Now a social security
system integrating old-age, unemployment, medical insurance and
minimum standard of living has taken preliminary shape, under
socialized management, quite separated from enterprises and
institutions.
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-- Old-age Insurance. The coverage of basic old-age insurance has
kept expanding from state- and collective-owned enterprises to
enterprises of various types and institutions. The security rights
and interests of employees of enterprises of non-public ownership
are also guaranteed. At the end of 2004, 122.5 million staff and
workers and 41.03 million retirees participated in the basic
old-age insurance program.?
-- Medical Insurance. Basic medical insurance is one of the social
insurance systems with widest spread, covering various enterprises
and institutions, state organs and social organizations, in cities
and towns. By the end of 2004, 124.04 million people had
participated in basic medical insurance.
-- Unemployment Insurance. With its large population, China is
under great unemployment pressure. To alleviate employment
problems, since 1993 the government has operated a labor market
policy, opening various channels for employment. The government has
implemented a re-employment project for staff members and workers
in state-owned enterprises laid off in recent years during
industrial restructuring; in 2004 alone, the government allocated
10 billion yuan to re-employment projects, which helped 5.1 million
laid-off people back into work. By the end of 2004, a total of
105.84 million people had participated in the unemployment
insurance program, and there were 4.19 million people drawing
unemployment benefit.
-- Guaranteed Minimum Standard of Living. A minimum standard of
living system has been established in all cities and county towns,
providing a basic guarantee for all residents whose families' per
capita income is below the lowest local standard. In 2004, there
were 22.05 million urban residents receiving such living standard
support. In the countryside, the establishment of the system for a
minimum standard of living has begun in many areas.