The Regulations on Social Insurance Administration were published on 16 August 2023 and take effect on 1 December 2023, with seven chapters and sixty-three articles. They consolidate registration, benefit transfers, claims, administration and supervision from scattered policy documents into a single administrative regulation.
For employers, the compliance focus is rarely whether contributions are required, but whether registration is timely, the base is accurate and cross-region employment is properly structured. After the regulations take effect, inspection standards in these areas will be clearer.
Registration and changes
Employers must register employees for social insurance within thirty days of employment. The regulations set out procedures for registration, change and cancellation, and allow administrations to obtain information through cross-departmental sharing.
The practice of waiting until an employee raises the issue carries higher risk. Registration data will be cross-checked against employment contracts, individual income tax filings and payroll, making delay easier to identify.
Contribution base and withholding
The base should be declared on total wages, not a uniform minimum, and wages should not be split into labels to avoid contributions. The regulations emphasise truthful declaration and verification, so employers should retain payroll, bank records and tax filings.
For remote employment, labour dispatch, outsourcing and flexible work, the contributing entity and base are more easily mismatched. Employers should distinguish employment, service and platform relationships, and avoid disguising de facto employment as cooperation.
Transfers and cross-region employment
The regulations address transfers of pension and medical insurance relationships, simplifying procedures and documents. For interprovincial transfers, branch employment and secondees, employers must clarify the contribution location, transfer timing and continuity of benefits.
Common problems include contributing in one city while working in another, or using third-party payment agents. Where no genuine employment relationship supports the arrangement, it may be treated as fabricated eligibility, affecting benefits and triggering penalties.
Claims and fraud liability
The regulations govern claims for work injury and unemployment benefits, require timely review and set liability for fraud. For employers, the timing of work injury recognition and filing is especially important; for employees, false claims may lead to recovery and penalties.
Employers should establish an accident reporting process covering medical treatment, notification, document collection, recognition application and benefit claims, with named owners and deadlines. Without a process, disputes between employer and employee often follow.
What can be prepared
First, check that registration occurs within thirty days of employment. Second, verify that the contribution base matches total wages. Third, review cross-region and agent payment arrangements for consistency between employment and contribution location. Fourth, improve work injury and termination benefit processes. Fifth, retain consistent payroll, tax and social insurance evidence.
For employment and social insurance arrangements, see our employment compliance service; for payroll and IIT filing, see tax compliance; for ongoing HR compliance, see annual legal counsel.
This article is based on the Regulations on Social Insurance Administration published on 16 August 2023 and effective from 1 December 2023. It is for reference only and does not constitute legal advice.