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China Issues Draft Proposal on Maternity Insurance
Source: china.org.cn
Source Date: Wednesday, November 21, 2012
Focus: Institution and HR Management
Country: China
Created: Nov 27, 2012

All employers should pay maternity insurance for all employees, according to a draft proposal published by China's Legislative Affairs Office of the State Council.

The document on maternity insurance and birth allowance, which was released late Tuesday, said all employers should pay the cover. This includes government offices, enterprises, institutions, individual economic organizations and social bodies.

Maternity insurance will not only be confined to local citizens who have a registered permanent residence or hukou. It will cover all on-the-job workers, the draft said.

Employers should pay for maternity insurance in accordance with a rate to the total salaries of staff. The proportion should be no more than 0.5 percent.

Employers that do not pay insurance will be punished, according to the draft.

Birth allowance refers to the wage-equivalent subsidy which a female worker will receive during maternity leave. The sum should be the worker's average monthly income of the previous year, the draft said.

The public can submit comments via email before Dec. 21.
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