Insurance for all

Announced with a great amount of fanfare, the Standing Committee of the National People's Congress passed the PRC Social Insurance Law (社会保险法) (SIL) on October 28 2010. Despite the adoption of the law after 16 years of deliberation, the law does not represent an immediate and dramatic shift in China's social insurance system. Instead, the law could be seen a step in the continuing evolution of China's social insurance system as the country tries to include all citizens under benefit programmes and reflects the government's often stated goals of promoting stability and equality throughout the country.

For many foreign investors, there will not be noticeable changes after the law becomes effective on July 1 2011. The employer will still be faced with the same five social insurance programmes: pension insurance, basic medical insurance, occupational injury insurance, unemployment insurance, and maternity insurance.