Social Security and Pension System in China

Table of Contents

Contents

Abstract

1.0 Introduction

2.0 Old-Age Insurance

3.0 Unemployment Insurance

4.0 Medical Insurance

5.0 Insurance for Work-related Injuries

6.0 Maternity Insurance

7.0 Social Welfare

8.0 Special Care and Placement

9.0 Social Relief

10.0 Housing Security

11.0 Social Security in Rural Areas

12.0 Observations

13.0 Conclusion

13.0 References

Abstract

Social security is a government program that provides economic assistance to persons faced with unemployment, disability, or agedness, financed by assessment of employers and employees. To establish and improve a social security system corresponding to the level of economic development is a logical requirement for coordinated economic and social development of any country. It is also an important guarantee for the social stability and the long-term political stability of a country.

China is the biggest developing country with a largest population in the world and its economic base being weak at a time, its social security was not well organized, but now the economic base is getting stronger and stronger and is the second largest economy in the World, second to USA. Within 20 years it is projected to take over from USA. With the improvement of the economy, China needs to put its house in order, as far as social security is concerned. China’s development between coastal regions and inland and between town and countryside is unbalanced. In this regard, establishing a sound social security system in China is an extremely arduous task and urgent one. In light of China's actual situation and adhering to the principle of "putting people first , " the Chinese Government attaches great importance and devotes every effort to establishing and improving its social security system. The Constitution of the PRC stipulates that the state shall establish and improve a social security system corresponding to the level of economic development. Therefore, the Government regards economic development as the basic prerequisite for improving people's livelihood and their social security.

After years of experiments and practice, a social security framework with Chinese attributes has started unfolding. However, China still has a long way to go to develop its social security services to a satisfactory level. Even though China has tried to put a comprehensive social security in place, the figures of accessibility is considerably low, further some places such as the rural areas do not have most of social security programs offered to their counterparts in urban areas. Further, the aging of the population will put more pressure on the old-age pension and medicare expenditure, while the progress of urbanization will make the establishment and improvement of a social security system covering both urban and rural areas more urgent.

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