The Compensation Policy of Work Injury Insurance in China Mr. ZHANG HAN Division Chief Department of Work Injury Insurance Ministry of Human Resources and Social Security, China

I.The Outline of Work Injury Insurance in China – Regulation on Work Injury Insurance – Coverage – Financing and Determination of the Contribution Rates – Compensations of Work Injury Insurance II.The Benefits of the Compensation – Medical treatment and rehabilitation benefits – Injury and disability benefits – Benefits for the deceased due to employment accidents

The Outline of Work Injury Insurance in China The Outline of Work Injury Insurance in China  Regulation on Work Injury Insurance The Chinese government promulgated the Regulation on Work Injury Insurance in April 2003 and became effective as of January 1, 2004,which amended in 2010 and came into effect on January 1,2011 in all 31 provinces, autonomous regions, and the metropolitan cities directly under the administration of the central government The Chinese government promulgated the Regulation on Work Injury Insurance in April 2003 and became effective as of January 1, 2004,which amended in 2010 and came into effect on January 1,2011 in all 31 provinces, autonomous regions, and the metropolitan cities directly under the administration of the central government

 Coverage All enterprises, institutions, social organizations, private non-enterprise units, foundations, law firms, accounting firms and individual businesses with employees within the territory of the People’s Republic of China All enterprises, institutions, social organizations, private non-enterprise units, foundations, law firms, accounting firms and individual businesses with employees within the territory of the People’s Republic of China The Outline of Work Injury Insurance in China The Outline of Work Injury Insurance in China

 The Financing and the Determination of the Contribution Rates – The work injury insurance is managed in the way of social pooling, which is at the city level, including the metropolitan cities that are directly under the central government, as well as cities that have districts that are attached. The Outline of Work Injury Insurance in China The Outline of Work Injury Insurance in China

 The Financing and the Determination of the Contribution Rates –The State fixes differential contribution rates for various trades in light of the degree of their risks of work injuries, and grades contribution rates within each trade on the basis of such factors as the use of work injury insurance fund and the incidence of work injuries. The Outline of Work Injury Insurance in China The Outline of Work Injury Insurance in China

The Outline of Work Injury Insurance in China  Compensations of Work Injury Insurance A staff member or worker is entitled to work injury medical benefits when such staff member or worker needs to receive medical treatment due to the injury caused by any work-related accident or due to the affliction of any occupational disease.

As a kind of occupational disease, asbestosis is listed on the Occupational Disease Formulary. The workers who got asbestosis, as long as their work units attend Work Injury Insurance, their costs of medical treatments, as well as the living guarantee of themselves and their dependants, are afforded by the FUND of Work Injury Insurance

Benefits of the Compensation can be divided into 3 types : Medical treatment and rehabilitation benefits Medical treatment and rehabilitation benefits Injury and disability benefits Injury and disability benefits Benefits for the deceased due to employment accidents Benefits for the deceased due to employment accidents The Benefits of the Compensation

Medical treatment and rehabilitation benefits Medical treatment and rehabilitation benefits  Medical treatment benefits  Rehabilitation expenses  Expenses for the installation of auxiliary aid and equipment

The Benefits of the Compensation Medical treatment and rehabilitation benefits Medical treatment and rehabilitation benefits  Medical treatment benefits »A staff member or worker shall receive medical treatment of work injury at a medical institution with which a service agreement has been concluded, or may first go to a medical institution nearby for emergency treatment in case of an emergency.

The Benefits of the Compensation Medical treatment and rehabilitation benefits Medical treatment and rehabilitation benefits  Rehabilitation expenses »Where a staff member or worker injured at work receives rehabilitation treatment in a medical institution with which a service agreement has been concluded, the costs, if spent in compliance with the provisions, shall be paid from the work injury insurance fund.

The Benefits of the Compensation Medical treatment and rehabilitation benefits Medical treatment and rehabilitation benefits  Expenses for the installation of auxiliary aid and equipment »Upon confirmation of the work capacity assessment committee, a staff member or worker injured at work may, if necessary for daily life or employment, wear prosthetic limb, orthopedic equipment, prosthetic eye, or prosthetic tooth and/or be equipped with wheelchair or other auxiliary apparatus, and the cost thereof shall be paid from the work injury insurance fund in accordance with the standard set by the State.

Injury and disability benefits Injury and disability benefits  Lump sum allowance benefits  Disability allowance  Life nursery benefits The Benefits of the Compensation

Injury and disability benefits Injury and disability benefits  Lump sum allowance benefits »A lump sum injury or disability allowance paid out of the work injury insurance fund according to the level of injury or disability.  Disability allowance »The injury or disability subsidy for a injured/disabled worker from Level 1 to 4 paid monthly out of the work injury insurance fund, while Level 5 to 6 paid monthly by the employing unit The Benefits of the Compensation

Injury level (1-10) Injury and disability benefits* Injury and disability benefits* Lump sum allowanceDisability allowance 1 27 months 90% per month 2 25 months 85% per month 3 23 months 80% per month 4 21 months 75% per month 5 18 months 70% per month 6 16 months 60% per month 7 13 months NA 8 11 months NA 9 9 months NA 10 7 months NA * Based on monthly wage of the staff member or worker

Injury and disability benefits Injury and disability benefits  Life nursery benefits »For a staff member or worker injured at work whose level of injury or disability has been identified and who needs to be nursed as confirmed by the work capacity assessment committee, the nursing fee shall be paid monthly from the work injury insurance fund. The Benefits of the Compensation

Disability level Injury and disability benefits* Injury and disability benefits* Life nursery benefits Complete loss of self-caring ability50% per month Loss of majority self-caring ability40% per month Partial loss of self-caring ability30% per month *Based on monthly wage paid to staff members and workers in the previous year in a pooling area

Benefits for the deceased due to employment accidents Benefits for the deceased due to employment accidents  Lump sum benefits for the deceased due to employment accidents  Funeral services expenses  Benefits to the dependants of the deceased The Benefits of the Compensation

Benefits for the deceased due to employment accidents Benefits for the deceased due to employment accidents  Lump sum benefits for the deceased due to employment accidents » the rate of a lump sum allowance for the death due to work shall be twenty times of the national average disposable income of urban residents in the previous year. The Benefits of the Compensation

Benefits for the deceased due to employment accidents Benefits for the deceased due to employment accidents  Funeral services expenses » the amount of funeral allowance shall be 6-month average monthly wage paid to staff members and workers of the pooling area in the previous year; The Benefits of the Compensation

Benefits for the deceased due to employment accidents Benefits for the deceased due to employment accidents  Benefits to the dependants of the deceased » the dependant’s pension shall be paid at a certain proportion of the wage of the staff member or worker to the relatives to whom such staff member or worker provides the main source of living before the death and who are incapable of working. The Benefits of the Compensation

Benefits for the deceased due to employment accidents Lump sum benefits * Funeral services expenses ※ Benefits to the dependants of the deceased ＃ 20 times 6 months Spouse : 40% Other relatives: 30% (Elderly person with no family or an orphan is 10% higher ) * Based on national average disposable income of urban residents in the previous year ※ Based on monthly wage of the staff member or worker ＃ Based on monthly wage paid to staff members and workers in the previous year in a pooling area

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