The Department Responded to "All Contract Staff to Participate in the Social Security Plan" Saying It Does Not Mean Wage Reform-人事招聘网

The Department Responded to "All Contract Staff to Participate in the Social Security Plan" Saying It Does Not Mean Wage Reform

■ Summary: Recently, the "Regulations" for the personnel management institutions/companies began being carried out. The about 30,000,000 employees will pay social security because of these new laws, and the signing of labor contracts with the units leads to the implementation of the "salary for each position". In this regard, the Ministry of Human Resources and Social Security, stressed that in the majority of the institutions and companies the employment contract system started in 2003 and is an important content of the of the personnel system reform. The Regulations come in the form of laws established by this institution. The Regulations are rules that concern only the existing wage system and existing social insurance policy, which means the implementation of these normative acts does not mean that a wage system reform and the reform of endowment insurance system has started in institutions.

Responding to Rumors regarding the new Regulations

Xinhua Beijing, 1 July Xinhua (reporter Zhang Xiaosong, Cui Qingxin)

The "Regulations" for the personnel management institution are beginning to be implemented this 1st of July. The Ministry of Human Resources and Social Security released a statement recently regarding the emergence of misleading information regarding the new laws, rumors that made many concerned with the wage and pension insurance.

The new normative acts concern the 1,110,000 institutions, which hire 31,530,000 staff members. They have the potential to affect these employees’ vital interests, therefore creating a social concern. The new laws do not bring significant change to the existing work contract system and do not force the participation in the social security scheme, but rather come as a continuation to the existing rules.

In this regard, the Ministry of Human Resources and Social Security, stresses the fact that in institutions the employment contract system started in 2003, and was and is an important aspect of the of personnel system reform. Up to now, the vast majority of institution staff signed employment contracts with their employing units. The Regulations come in the form of laws established by this institution.

The Ministry of Human Resources and Social Security would like to make clear the fact that the new regulations are rules that concern only the existing wage system and existing social insurance policy, which means the implementation of these normative acts does not mean that a wage system reform and the reform of endowment insurance system has started in institutions.

Updated July the 1st 2014