10/05/2000
China Daily

Social security reform during the Ninth Five Year Plan period (1996-2000) has centred on reforming the social insurance system, in a bid to reinforce and aid the reform of State-owned enterprises and thus ensure social stability.

Pensions have expanded from just State-owned and collective enterprises to a variety of enterprises and organizations.

By the end of June, about 95 million employees and 30 million retirees had joined pension schemes. The number of employees in such schemes is expected to rise to 103 million by the end of the Ninth Five Year Plan period, according to the State Development Planning Commission.

Pension payments have shifted from directly from enterprises to from local banks and post offices. By the end of June, more than 60 per cent of pensions were paid through banks or post offices.

Since July 1999, more than 27 million retirees have received an increased pension. Retired officials are getting 145 yuan (US$17.55) more each month and the pension for the average worker has increased by 60 yuan (US$7.25).

The pension system has also been carried out to rural areas. Around 76 per cent of rural towns and villages throughout China participate in the welfare system paying pensions to about 80 million country dwellers.

Medical insurance

The medical insurance system in enterprises and institutions has undergone major changes. The new system is aimed at promoting quality medical services and controlling levels of medical expenditure to provide people with good services at reasonable prices.

It is estimated that by the end of the Nineth Five Year Plan period, medical insurance systems will have been set up in all China's major cities and towns, resulting in 50 million people benefiting from the system.

Unemployment benefits

Due to the further restructuring of State-owned enterprises unemployment has reached record levels.

The government has made great efforts to ensure a basic standard of living to people who have been laid-off and to help them find work again.

By the end of last year, 95 per cent of laid-off workers from State-owned enterprises had registered at reemployment centres, 90 per cent of which received financial aid.

The amount of unemployment benefit increased in July 1999 by 30 per cent.

Social welfare

The welfare system is no longer run only by the government. Private welfare organizations are developing rapidly. Community welfare networks have been piloted in 20 cities.

By the end of 1999, there were 6,629 community centres in cities and towns across China, up 7.3 per cent from last year.

The Regulations on the Minimum Living Standards for Urban Residents, issued last October, showed minimum living standards have got legal backing.