China plans to establish social security number system

(Xinhua)
Updated: 2008-12-23 00:06

BEIJING -- China announced plans Monday to establish a social security number system for the welfare of its citizens.

The draft of the social insurance law was discussed by the Standing Committee of the 11th National People's Congress, the country's top legislature, on Monday.

The draft said China would establish a standard social security number system across the nation by using each citizen's current identification card number.

The social insurance fund will be categorized into endowment insurance, medical insurance, insurance against injury at work, unemployment insurance and childbirth insurance, the draft said.

Currently, China's social insurance fund is managed by the Ministry of Human Resources and Social Security and its branches in provinces, municipalities and autonomous regions.

According to the country's labor law, the funding of endowment, medical and unemployment insurance is raised by both individuals and their employers. Workplace injury and childbirth insurance have to be paid by employers.

A series of social insurance fund embezzlement scandals have been exposed in China since 1998. More than 16 billion yuan (about 2.3 billion US dollars) was embezzled.

The new social insurance law's draft said any individual or organization has a right to complain or report illegalities about the social insurance fund. The measure is an endeavor to invite more supervision of the citizen's basic security.

The draft also determined that a new type of rural medical system, in which farmers and governments raise funds together, would be included in the medical insurance.

Governments will cover medical insurance expenses for citizens who live on low-income subsidies, have serious disabilities or are older than 60 years, the draft said.