Provisions of Shanghai Municipality on Collection and Contribution of Social Insurance Premiums
(Promulgated on March 5 2002 by Decree No.117 of
the Shanghai Municipal People¡¯s Government)
Article 1 (Purpose and Basis)
In order to regulate and strengthen the collection and contribution of social insurance premiums and ensure the distribution of social insurance benefit, these Provisions are formulated according to the ¡°Interim Regulations on Collection and Contribution of Social Insurance Premium¡±, the ¡°Regulations of Shanghai Municipality on Collection and Contribution of Social Insurance Premium of Urban Staff and Workers¡± and the State¡¯s relevant stipulations as well as with full consideration of the actual conditions in the Municipality.
Article 2 (Scope of Application)
These Provisions shall apply to the collection and contribution of social insurance premiums such as basic pension premium, basic medical insurance premium, unemployment insurance premium and maternity insurance premium (hereinafter referred to as social insurance premiums) in the jurisdiction of the Municipality.
Article 3 (Definition)
The employing unit contributors and individual contributors under these Provisions refer to the employing units and individual workers that shall make social insurance contributions according to relevant laws, regulations and provisions of the State Council and the Municipal People¡¯s Government.
Article 4 (Administrative Department)
Shanghai Municipal Labour and Social Security Bureau (hereinafter referred to as SMLSSB) takes charge of the administration and supervision on the collection and contribution of social insurance premiums in the Municipality.
Labour inspection departments under SMLSSB take charge of supervision and inspection on the collection and contribution of social insurance premiums.
Social insurance agencies take charge of the collection and contribution of social insurance premiums, and are entrusted by SMLSSB to conduct investigations and audit relevant to the collection and contribution of social insurance premiums.
Article 5 (Working Principle)
Social insurance premiums shall be collected in a concentrated and uniform way.
Employing unit contributors and individual contributors shall timely make due social insurance contributions.
Social insurance premiums shall not be reduced or exempted.
Article 6 (Employing Unit Registration)
New employing unit contributors shall, within 30 days upon its establishment, go through social insurance registration procedures with the social insurance agencies, bringing with them the business licenses or registration certificates and other relevant documentation. Social insurance agencies shall issue social insurance registration certificates after examination and verification.
Social insurance registration items include the names of the unit, residence, business location, unit type, legal representative or person in charge, bank account number and other items as stipulated by the labour & social security administrative department of the State Council.
In case of alteration of social insurance registration items, employing unit contributors shall, within 30 days upon alteration, handle the alteration formalities of social insurance registration with the original registering organizations.
In case of revocation, dissolution, bankruptcy or closing down due to other reasons, employing unit contributors shall, within 30 days upon termination, go through the cancellation formalities of social insurance registration with the original registering organizations.
Article 7 (Declaration and Verification)
Employing unit contributors shall declare and report the sum of social insurance premiums that shall be paid to the social insurance agencies.
In case of alteration of the number of employee contributors and other issues concerning contributions of premiums, the employing unit contributors shall, within the month of alteration, declare and report the altered sum of social insurance premiums that shall be paid to the social insurance agencies.
The social insurance agencies shall verify the sum of social insurance premiums declared by employing unit contributors.
Article 8 (Contribution Time set for Units)
Employing unit contributors shall make contributions of social insurance premiums on the date set by the social insurance agencies between the first to 15th day of each month.
Article 9 (Contribution Method for Individual workers)
The social insurance premiums that shall be paid by individual contributors shall be deducted from the individual workers¡¯ salaries or wages and then paid by the employing unit contributors for them.
Freelancers and employees with the informal employment organizations who make contribution by themselves may apply in person to the social insurance agencies for social insurance registration, and declare and pay social insurance premiums.
Article 10 (Conditions for Applying for Deferred Contribution)
Under any of the following cases, employing unit contributors that are unable to make due monthly contributions of social insurance premiums may, with the approval of the employee representative congress or trade union, apply to SMLSSB for deferred payment of the premiums:
(1) Under the bankruptcy procedure declared by the People¡¯s Court according to law;
(2) Suspending production or having suffered continuous economic imbalances for over one year or verging on bankruptcy;
(3) Other cases approved by the Municipal People¡¯s Government.
Article 11 (Application for Deferred Contribution)
Employing unit contributors that apply for deferred payment shall submit competent certificate of their property rights (including certificate of real estate property rights, negotiable securities, certification of equity rights, the same below).
Employing unit contributors with independent disposal rights of property may apply for deferred payment of the social insurance premiums. Those without independent property disposal rights may jointly make the application with the third party that has the property disposal rights.
Article 12 (Duration for Deferred Contribution)
In applying for deferred payment of social insurance premiums, the applicant shall suggests the duration for deferred payment as well as the plan for contribution.
The maximum duration for deferred contribution shall not exceed one year.
Article 13 (Property Reporting for Record)
Employing unit contributors that meet the conditions for deferred contribution shall, with the notice of SMLSSB, have their corresponding property assessed by a qualified evaluation organization.
The result of property evaluation shall be taken as reference to determine the sum of the deferred contribution.
After evaluation process, the concerned employing unit contributors shall, with the notice of SMLSSB, go through formalities of property record with the Shanghai Municipal Housing & Land Resources Administration and other administrative Departments concerning certificates of property rights.
The property that the deferred contribution applicant uses for record shall not be used as other loan guarantee and should not have been sealed up or frozen by judicial organs.
Article 14 (Approval of Deferred Contribution)
After the deferred contribution applicant completes the formalities of property record, the SMLSSB shall give an official reply and issue the Letter of Approval Decision on Deferred Contribution of Social Insurance Premiums within 10 days.
The actual deferred contribution duration refers to the duration approved by SMLSSB.
Article 15 (Verification and Definition of the Sum of Deferred Contribution)
The sum of deferred social insurance contributions shall be defined according to the unit¡¯s payable sum of the month that deferred payment is applied for, multiplied by the number of deferred months. Within the duration of deferred payment, the amount of deferred social insurance contributions shall not exceed that have been reviewed.
No overdue penalty shall be imposed on the deferred social insurance contributions within the duration of deferred contribution.
Article 16 (Prohibitive Provisions)
No shift or transfer of property recorded shall be allowed before the deferred contributor pays off the deferred social insurance premiums.
Article 17 (Priority of paying off Deferred Social Insurance Contributions)
The property that has been recorded, if disposed and transferred for other reasons, shall be given priority to pay off the deferred social insurance contributions.
Article 18 (Provisions on Merger, Acquisition and Reshuffle)
In case of dissolution for merger, acquisition or reshuffle or other reasons by the deferred contributor, the approved duration for deferred contribution shall be deemed as expired. The deferred contributor shall pay off the deferred social insurance contributions before going through the cancellation registration.
The merging party, acquiring party or the unit newly established after reshuffle, if meeting relevant requirements, may make new application for deferred contribution.
Article 19 (Cancellation of Property Report Record)
The employing unit contributor approved for deferred payment of social insurance premiums shall make contributions according to the approved repayment plan. After the deferred contributor pays off the deferred social insurance premiums, the SMLSSB shall, within 10 days, notify them in written form to go through the formalities of cancelling the property report record.
The deferred contributor shall, with the notice of SMLSSB, go through the filing procedure for property report record cancellation with the original property record filing Departments.
Article 20 (Enforcement on the Property Reported for Record)
In case that the employing unit contributor fails to pay off social insurance premiums according to the repayment plan upon expiration of deferred duration, or the deferred contributor shifts or transfers the recorded property within the duration of deferred payment, SMLSSB has the right to apply for enforcement to the People¡¯s Court according to laws and regulations.
Article 21 (Disposal of the Property Reported for Record)
In case that the deferred contributor fails to pay off the deferred social insurance premiums upon expiration of the enforcement period for the deferred social insurance contributions by the People¡¯s Court, the People¡¯s Court may liquidate the recorded property of the deferred contributor according to laws and regulations. The corresponding proceeds shall be put into the social insurance funds. Once an agreement has been reached by the deferred contributor and SMLSSB through consultation, the People¡¯s Court may turn over the recorded property to the Municipal Social Insurance Agency. In case that the recorded property cannot be liquidated temporarily, or an agreement could not be reached through consultation, and that SMLSSB is consent to accept such recorded property, the People¡¯s Court may decide to put such property under the management of the Municipal Social Insurance Agency for liquidation at appropriate time.
Article 22 (Repayment in case of Bankruptcy)
In case of bankruptcy, the deferred social insurance contributions of the employing unit contributor shall be repaid in the bankruptcy liquidation.
Article 23 (Inquiry)
Employing unit contributor and individual contributor have the right to inquire the records of social insurance premiums of their units or the relevant individual accounts.
Article 24 (Supervision of Employees)
Employing unit contributors shall every year make their employees informed of the issues about social insurance premiums they have paid in the year and be supervised by their staff and workers.
Article 25 (Audit)
Social insurance agencies shall check the number of employees of the employing unit contributors, the social insurance contribution base and financial status to confirm if the employing unit contributors make due payment of social insurance premiums according to laws and regulations. The units audited shall provide actual materials of employment, payrolls, financial statements, and other materials related to social insurance premiums.
Article 26 (Notification)
In case that the employing unit contributor fails to go through social insurance registration as stipulated, or fails to make full payment of social insurance premiums as scheduled, social insurance agencies have the right to notify the employing unit contributor¡¯s trade union or individual contributors of the facts and the consequent infringements upon the legitimate rights and interests of the individual contributors. SMLSSB has the right to notify the supervisory trade unions of the concerned employing unit contributors and the Municipal Trade Union of the facts and the consequent infringements upon the legitimate rights and interests of the individual contributors; and may make known to the public the concerned employing unit contributors according to the specific infringement situation.
Article 27 (Overdue Fine)
In case that the employing unit contributor fails to go through social insurance registration procedure as stipulated, or fails to make full contribution of social insurance premiums as scheduled, the Labour & Social Security Administrative Department shall request payment within a set time. Those that still fail to pay within the set time shall pay an overdue fine of 0.2 percent per day since the date of default. The overdue fine shall be included into the social insurance funds.
Article 28 (Dealing with the Defaulter)
In case that the employing unit contributor fails to make full payment of social insurance premiums as scheduled, the social insurance agency shall urge the concerned unit for payment. Those that still fail to contribute within the month shall be referred to the labor inspection authority according to laws and regulations in the next month.
Article 29 (Report for Breaches)
Any organizations and individuals that find out any breaches in the collection and contribution of social insurance premiums have the right to inform the labour inspection authorities and social insurance agencies. The labour inspection authorities or social insurance agencies shall timely conduct investigations on the allegations and deal with the case established according to the relevant provisions and regulations.
The labour inspection authorities or social insurance agencies shall keep confidentiality for the informers.
Article 30 (Effective Date)
These Provisions shall become effective as of April 10, 2002.
