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Accounting - China

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Q&A Regarding Disability Allowance of Employment Injury Insurance

Answer
Q:
What is disability allowance?
A:
The disability allowance is a reasonable compensation for the loss of wages and income of the injured workers who quit their jobs due to work-related disability.

Q:
Can I get disability allowance as long as I get injured at work?
A:
According to the Regulations on Employment Injury Insurance, employees who are disabled due to work are identified as 1 to 6 levels of disability, and can enjoy disability allowance in accordance with relevant regulations. Employees injured at work who have been identified as 7 to 10 levels of disability unable to enjoy disability allowance, but they can enjoy a one-time disability subsidy according to law.

Q:
Are all disability allowances paid by the employment injury insurance fund?
A:
Employees injured at work who have been identified as 1 to 4 levels of disability, the disability allowance shall be paid by the employment injury insurance fund; Employees injured at work who have been identified as 5 or 6 levels of disability, the disability allowance shall be paid by the employer.

Q:
What is the payment standard of disability allowance?
A: The payment standard of disability allowance is: 90% of employee's salary for level 1 disability, 85% of employee's salary for level 2 disability, 80% of employee's salary for level 3 disability, 75% of employee's salary for level 4 disability, 70% of employee's salary for level 5 disability, 60% of employee's salary for level 6 disability. If the actual amount of disability allowance is lower than the local minimum wage standard, the payer of disability allowance will make up the difference.

Q:
Can I still get disability allowance after retirement?
A: Employees injured at work who have been identified as 1 to 4 levels of disability will stop receiving disability allowance after reaching retirement age and going through retirement procedures, and enjoy basic pension insurance benefits in accordance with relevant regulations. If the basic pension insurance benefits are lower than the disability allowance, the industrial injury insurance fund will make up the difference.

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