Zhejiang Province Adjusts Basic Pension Standard

May 24, 2012 Posted by China Briefing Reading Time: 2 minutes

May 24 – The Zhejiang Provincial Department of Labor and Social Security readjusted the minimum pension base for social endowment insurance for both rural and urban residents from RMB66 per person per month to RMB80 per person per month, which will be effective from June 1, 2012.

The readjustment of the minimum pension base answers the call of the “Opinion from Zhejiang Government regarding Accelerating the Construction of the Social Endowment Insurance System (shezhengfa [2011] No. 19),” which emphasizes the importance of taking growth of income and discretionary income per capita into consideration when adjusting pension standards.

Up until the end of 2011, there were 13.12 million people in Zhejiang Province participating in the social endowment insurance program and the enlisting rate exceeds 90 percent, with approximately 5.85 million people receiving pension.

As the economy develops, the minimum pension base has been raised twice from the original RMB60 per person per month. In the meantime, different cities and towns in Zhejiang have their own minimum pension base built on the provincial standard according to the local economy, and the highest minimum pension base in Zhejiang has reached RMB140 per person per month in the city of Ningbo.

Dezan Shira & Associates is a specialist foreign direct investment practice and can advise international companies investing in China on the country’s complete legal, tax and operational issues. The firm was established in 1992 and maintains 12 offices throughout China, in addition to practicing in Hong Kong, India, Vietnam and Singapore. The firm can advise on all matters of China HR, payroll and costs. Please contact the firm at china@dezshira.com or visit our web site at www.dezshira.com.

Related Reading

The Yangtze River Delta: Business Guide to the Shanghai Region (Fourth Edition)
This guide takes a practical, city-focused approach, walking you through the economy of important cities in the region with a level of specificity available through few other English sources. Its pages overview the region from a business standpoint, examine the economy of the region’s provinces and prominent cities in depth, and introduce the basics of establishing a business in the region.

China’s Social Insurance Law
A summary of some of the key points in the newly implemented Social Insurance Law, which covers a great deal more than just incorporating foreigners into the system. We explain the costs and benefits of participation by foreign employees to both companies and individuals as well as take a look at some of the trends across the country relating to the implementation of the law.