Source: CCTV.com

02-06-2009 08:49

China is drawing up regulations for its millions of migrant workers to participate in specialized pension plan. A top social welfare authority has just announced a draft regulation. This draft will be open to the public to collect their opinions.

China is drawing up regulations for its millions of migrant workers to participate in specialized pension plan.

The Ministry of Human Resources and Social Security has just issued a draft regulation on migrant workers' basic pension.

The regulation states that contributing to the specialized pension is mandatory for both workers and their employers. It will take effect when they sign employment contracts. The regulation suggests that workers will pay 4 to 8 percent of their salary to the pension pool while their employers will pay another 12 percent. When a migrant worker moves to another company or city, the pension will be moved automatically. It's also suggested that migrant workers will be entitled to receive an annuity after paying into the pension fund for 15 years. Every pensioner will be able to get access to their account at any social welfare institute with their exclusive personal number.

China has about 200 million farmer-turned workers. The majority of them work in urban areas and are not covered by any medical or life insurance, let alone pensions. The government has been working on a insurance regulation to take care of these people since 2007.

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Editor:Xiong Qu