Long-term Care Pension Insurance in Shenzhen since October 2021
In order to enrich the system for pension insurance, provide medical and economic support for insurant at a time of insufficient self-care, the Standing Committee of the National People’s Congress in Shenzhen announced a “Regulation on Long-term Care Pension Insurance in Shenzhen Special Economic Zone” (the Regulation thereinafter) on 29th October 2020. which will be effective from the 1st October 2021. The detailed regulation is as follows:
The Regulation enlarged the scope of insurant. It covers employees from Shenzhen entities who currently participated in basic medical insurance, as well as non-employed individuals who have reached the age of 18 and are not enrolled in schools.
Payment Subjects and Amount
The payment base for long-term care pension insurance shall be the average monthly salary of Shenzhen employees in previous year, and the monthly rate is 0.1%. Employees are bound for half of the amount, equals to their employer, who is bound for the other half. Non-employees, including retirees, residents and other insurant, shall pay the full amount by themselves. Individuals who have difficulties in paying the amount may receive subsidies from authorities.
Taking the average monthly salary RMB10,646 of 2019 as an example, an insurant shall pay RMB128 annually (approximately RMB10.6 monthly). In which, RMB5.3 per month shall be paid by themselves, the other RMB5.3 per month shall be paid by their employer. Retirees, residents and other insurant shall pay the full RMB10.6 per month by themselves.
With considered with the overall economic development level, the fund balance and other relevant factors, the Regulation reserves the right to adjust insurance rates accordingly to Shenzhen government.
The benefit of long-term care pension insurance will be provided with specific consideration. Such as the intensity of care required, provision of caring service, duration of long-term care needed. The Shenzhen government will initiate a comprehensive appraisal system for the elderly, which aims on assessing the physical flexibility, caring service type and caring intensity in a scientific way. The system will be a supportive base for release relevant subsidy, long-term care pension insurance benefit, homecare or community care service, caring facilities or similar institution sort of decisions.
is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.