Measures on Payments of Work Injury Insurance Fees for Enterprises in Certain Sectors Released

The Ministry of Human Resources and Social Security promulgated the Measures on Payments of Work Injury Insurance Fees for Enterprises in Certain Sectors (the “Measures”), which came into effect on January 1, 2011.

According to the Measures, “enterprises in certain sectors” refers to construction enterprises, small-scale service enterprises, small-scale mining enterprises (the latter two are determined in accordance with the Interim Measures on the Standards for Small and Medium Enterprises) in the construction, service and mining sectors, for which it is difficult to calculate the work injury insurance fees directly based on gross wages.

Specifically, the Measures stipulate that construction enterprises may pay work injury insurance fees based on a fixed ratio of the total construction cost of each project.

Small-scale service enterprises engaging in trading, food and beverage, lodging, cosmetics and grooming, bathing, and cultural and sports entertainment and individual industrial and commercial households with employees can determine the number of insurance participants based on the size of their business premises, and calculate and pay work injury insurance fees based on a fixed ratio of the previous year’s average monthly income and the corresponding fee rate of the unified planning district. They can also calculate and pay the work injury insurance fee based on a fixed ratio of their turnover.

The Measures also provide that the specific methods of calculating the work injury insurance fees of the enterprises in the sectors listed in the Measure will be determined by the provincial level administrative departments of social insurance based on the actual circumstances of their localities.

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