China

 

In China, social security is organized by scheme, by region and by groups of population. In general, the formal system is composed of five formal social insurance schemes and a social assistance program, which is complemented by supplementary schemes, such as occupational pensions, trade-union-run programs, commercial insurance, etc.

Social security is much more developed in the urban areas in terms of of the scope of social security coverage, and tends to extend more widely in terms of personal coverage, benefit level and contingency packages.

There  has been significant extension of social security coverage in China over the past ten years, specifically in terms of health insurance and income assistance, certain improvements include:

  • 1000 million people, equal to more than 70 per cent of the whole population, are now insured under one of the three main health insurance schemes, two of which were introduced in 2003 and 2007 respectively. The government's goal is to have more than 90 per cent of the population insured by 2020.
  • Since 2007, every household is protected from falling below defined poverty lines by the Minimum Living Standard program.

There are multiple contributing factors for the vast progress in China's extension of social security. One of the most important reasons is the Government's new adoption of social security as a national priority, which has been supported by an increased amount of dedicated fiscal resources: a total of CNY1950 billion has been earmarked to social security over the period of 2003-2007, accounting for about 11.6 per cent of the government budget.

Total population : 1.4 billion
(UN Population Division | World Population Prospects, 2012)
GDP per capita (PPP US $) : 8442
(World Bank | WDI, 2011)
GDP growth (in %) : 9.1
(World Bank | WDI, 2011)
Human Development Index (HDI) : 0.687 [Rank: 101]
(UNDP | Human Development Indicators, 2011)
Total expenditures on health as % of GDP : 5.1
(WHO | WHO Statistical System, 2010)
Public expenditure on health as % of GDP : 2.7
(WHO | WHO Statistical System, 2010)
Govt. expenditure on health as % of total govt. Expenditure : 12.1
(WHO | WHO Statistical System, 2010)
Health expenditure not financed out of pocket by private households (% total health expenditure) : 63.4
(WHO | WHO Statistical System, 2010)
Public social security expenditure (including health) as % of PIB : 5.71
(IMF, 2008)
Share of population above the statutory retirement age benefiting from an old-age pension : 44.6
(ILO Social security inquiry, 2009) Map
Share of economically active population contributing to a pension scheme : 31.5
(ILO Social security inquiry, 2009) Map
Share of unemployed receiving regular periodic unemployment benefits : 10.2
(ILO Social security inquiry, 2009) Map

Link to SSI: China | Data & indicators (the ILO Social Security Inquiry)


Social security schemes and programs by branch


RESOURCES

德国法国医疗保险体系简介
Zhuang, B., 2010
Assessment Report on the ILO Performance Indicators (PIS)
Research Association of Medical, Work Injury and Maternity Insurance of Hunan Province, the People's Republic of China, 2010
Research report on issues concerning the expansion of social security coverage in China
Li, M.F.; Institute of International Labor and Social Security, MOHRSS, 2009

Innovative scheme

Health insurance for urban economically inactive residents
Unemployment insurance scheme

NEWS & Calendar

China’s latest revolution: Basic health care for all
Can China get old and rich at the same time?
China is piloting Old Age Allowance (OAA) scheme

Links

China Social Security responses to the economic crisis
Ya Shu, 2009
ILO Office for China and Mongolia
ILO Office for China and Mongolia, 2008
National Bureau of Statistics of China
National Bureau of Statistics of China, 2006

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