China vows to improve social security system in CPC plenum resolution

A document released after the third plenary session of the 20th Communist Party of China (CPC) Central Committee has vowed to improve the country’s social security system.

The resolution of the CPC Central Committee on further deepening reform comprehensively to advance Chinese modernization said China will improve the system for the unified national management of basic old-age insurance funds and the unified national platform for social insurance public services.

According to China’s Social Insurance Law, China establishes “a social insurance system consisting of basic old-age insurance, basic medical insurance, work injury insurance, unemployment insurance and maternity insurance to guarantee citizens’ rights to receive material assistance.”

The resolution said China will refine the mechanisms for financing basic old-age insurance and basic medical insurance and adjust the benefits of both as appropriate. Basic pension benefits for rural and non-working urban residents under the basic old-age insurance scheme will also be raised gradually. 

“We will build a sound social security system to serve people in flexible employment, rural migrant workers, and those in new forms of employment and expand the coverage of unemployment insurance, workers’ compensation, and childbirth insurance programs,” the resolution added.

The number of people covered by basic old-age insurance in China had reached 1.071 billion by the end of June 2024, an increase of 14.23 million people compared with the same period last year, data released by the Ministry of Human Resources and Social Security showed on Tuesday. 

By the end of June, 243 million people were covered by unemployment insurance, an increase of 3.88 million year on year, the data revealed. The number of people covered by work-related injury insurance had reached 299 million, a year-on-year increase of 4.78 million people.

China will see to it that all restrictions preventing people from accessing social security in the places where they work but do not hold permanent residency are lifted and that policies for transferring social security accounts are improved, the resolution said.

In addition, China will move faster to develop a multi-tiered, multi-pillar old-age insurance system, expand the coverage of the annuity system, and promote the implementation of private pension schemes.

“We will work toward provincial-level unified management of basic medical insurance funds, further reform medical insurance payment models, improve major disease insurance and medical assistance schemes and tighten oversight over medical insurance funds,” the resolution added.

The resolution also said China will improve the social assistance system, the system for protecting the lawful rights and interests of women and children, and the social security and service systems for people with disabilities.