Unemployment Insurance to Extend Coverage to Non-Hukou Holders

Unemployment Insurance to Extend Coverage to Non-Hukou HoldersA spokesperson for the municipal human resources and social security bureau said that the government run unemployment insurance of the city will be extending its coverage to 6 million employees without hukou or permanent residency permits.

Currently the insurance only covers those people holding Shenzhen hukou, but according to the new law which will take effect on January 1, 2013 the insurance will now include people without Shenzhen hukou. Under the new law, the premium which is 45 yuan a month for an insured person will be shared by the employer and the insured worker. This means that the workers will only pay 15 yuan while the employers pay 30 yuan. Also the municipal human resources and social security bureau are planning to lower the premium payable by employers of up to 40 percent.

When employer fires workers, they will only get discounts on the premium by next year, this is done to encourage the employers to hold onto their employees. Once an insured employee is fired, they can receive up to 24 months of unemployment compensation or about 1,056 yuan a month. The compensation will also pay the medical insurance for up to 24 months.

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