China will end its fragmented work injury insurance system by
extending its coverage to 27.24 million people working in the
non-profit making sector, the Ministry of Labor and Social Security
(MLSS) said Wednesday.
China has a fragmented work injury insurance system which sets
various compensation rules according to different sectors people
are working for, such as governments, profit making companies and
public institutions, including non-government ones.
"This system has caused chaotic counterclaim activities from
employees of various work units," said Hu Xiaoyi, a spokesman with
On December 29, 2005, four central government departments
including the MLSS jointly issued a circular on extending the
present insurance coverage to non-profit making sectors, or public
institutions, said Hu.
"It is a measure in China to improve its social security
system," he added.
China now has 27.24 million people working in the non-profit
making sector, but only 20 percent of them will be surely included
in the newly issued insurance system.
In 1996, China issued a temporary regulation on compensation
methods targeting employees only in companies, and in 2003, the
State Council announced that the coverage should extend to all
companies within Chinese territories and private business companies
which have their own employees.
(Xinhua News Agency January 12, 2006)