Sui Ren She Gui Zi [2020] No. 1
Toall district human resources and social security bureaus, finance bureaus, tax bureaus and emergency management bureaus, the Third Taxation Branch of the Guangzhou Municipal Tax Office, and all other parties concerned:
Pursuantto the Regulations on Work Injury Insurance, Regulations of Guangdong Province on Work Injury Insurance,and other relevant regulations, and with the approval of the Guangzhou Municipal Government, the Measures for the Management of VariableWork Injury Insurance Contribution Rates in Guangzhou is hereby issued for your due implementation.
Guangzhou Municipal Human Resources and Social Security Bureau
Guangzhou Municipal Finance Bureau
Guangzhou Municipal Office of the State Taxation Administration
Guangzhou Emergency Management Bureau
April 3, 2020
Measures for the Management ofVariable Work Injury Insurance Contribution Rates in Guangzhou
Article 1. These Measures are formulated in accordance with the Social Insurance Law of the People’s Republic of China, the Regulations on Work Injury Insurance, the Regulations of Guangdong Province on Work Injury Insurance, and the Notice of the Ministry of Human Resources and Social Security and the Ministry of Finance on Adjusting Work Injury Insurance Contribution Rate Policies(Ren She Bu Fa [2015] No. 71), in order to improve the mechanisms underlying variable work injury insurance contribution rates and give full play to the leverage of work injury insurance contribution rates in encouraging sound work injury prevention efforts on the part of employers.
Article 2.These Measures are applicable to the determination of work injury insurance contribution rates for employers enrolled in the work injury insurance system in the pooling district of Guangzhou.
Article 3.In these Measures, variable work injury insurance contribution rates refer to the determination by the municipal social security agency, on the basis of the industry benchmark work injury insurance contribution rates applicable to an employer, and in connection to factors such as the employer’s work injury insurance payout-contribution rate, production safety, and occupational hazards in the previous calendar year, as to the tiers by which work injury insurance contribution rates should or should not float.
The work injury insurance payout-contribution rate, as mentioned in the above paragraph, refers to the ratio of the work injury insurance benefits (excluding the benefits not included in the scope of assessment) assessed to be payable by the municipal social security agency to the work injury insurance contributions paid by an employer according to the benchmark contribution rates for its industry.
Article 4.The following work injury insurance benefits paid by the work injury insurance fund are not included in the scope of assessment as regards the work injury insurance payout-contribution rate of an employer:
4.1 Costs arising from an employee’s sudden death during working hours at the place of work or such death within 48 hours despite emergency resuscitation efforts;
4.2 Costs arising from an employee’s injury sustained during activities to safeguard national or public interests such as emergency rescue and disaster relief;
4.3 Costs arising from an employee’s infection with a disease due to being dispatched by the employer to work in a location that has been, in accordance with law, declared as an epidemic area;
4.4 Costs arising from an employee’s recurrence of an old injury after being employed by the employer, where the employee has received a Disabled Revolutionary Serviceman Certificate for a disability sustained during combat or public duty when serving in the armed forces;
4.5 Costs arising from an injury during commutes to and from the workplace sustained by an employee from a traffic accident for which he does not bear primary responsibility or an accident on urban rail transit, passenger ferry or railway train;
4.6 Costs arising from an old (existing) work injury, covered by the work injury insurance fund, of an employee hired by the employer;
4.7 Costs for disability allowances, expenses of personal care, and pension allowances for dependents approved in the previous calendar year;
4.8 Costs paid by the work injury insurance fund for medical treatment verified to be required due to the recurrence of a work injury in an employee.
Article 5.For employers in Category I industries, contribution rates are classified into three tiers, namely floating upward to 120% or 150% of their industry benchmark contribution rates, but not floating downward. For those in Category II to Category VIII industries, contribution rates are classified into five tiers, namely floating upward to 120% or 150% or downward to 80% or 50% (see the specific contribution rates in the Annex) on the basis of the benchmark contribution rates for their respective industries.
The minimum work injury insurance contribution rate shall not be lower than the benchmark contribution rate for Category I industries in Guangzhou.
Article 6.Variable work injury insurance contribution rates in Guangzhou shall be effective for a period of 1 year from July 1 of the current year to June 30 of the following year. The period of assessment for the work injury insurance payout-contribution rate is from January 1 to December 31 of the preceding year.
When contribution rates are to be adjusted again, adjustments shall be based on the respective industry benchmark contribution rate.
During the period of assessment for the work injury insurance payout-contribution rate, if an employer is participating in the insurance system for the first time and has made contributions for less than 12 months, it will be exempt from variable work injury insurance contribution rates and subject to the benchmark contribution rate for its industry. If an employer is not participating in the insurance system for the first time but has made contributions for less than 12 months, it will be subject to variable work injury contribution rates based on its work injury insurance payout-contribution rate as calculated by its actual months of contributions.
Article 7.The municipal social security agency shall determine the tier of variation with regards to work injury insurance contribution rates based on the work injury insurance payout-contribution rate of the employer:
7.1 If the work injury insurance payout-contribution rate is zero, the contribution rate shall be lowered by two tiers on the basis of the relevant industry benchmark contribution rate for the belonging industry;
7.2 If the work injury insurance payout-contribution rate is higher than zero but lower than or equal to 50%, the contribution rate shall be lowered by one tier on the basis of the relevant industry benchmark contribution rate;
7.3 If the work injury insurance payout-contribution rate is higher than 50% but lower than or equal to 100%, the contribution rate shall be subject to the industry benchmark contribution rate;
7.4 If the work injury insurance payout-contribution rate is higher than 100% but lower than or equal to 150%, the contribution rate shall be raised by one tier on the basis of the industry benchmark contribution rate;
7.5 If the work injury insurance payout-contribution rate is higher than 150%, the contribution rate shall be raised by two tiers on the basis of the industry benchmark contribution rate.
If an employer belongs to a Category I industry and satisfies the requirements of Paragraph (I) or (II) above, its contribution rate will not vary and shall be subject to the benchmark contribution rate for Category I industries.
Article 8.If any of the following circumstances apply to an employer, its contribution rate shall be lowered by two tiers on the basis of the contribution rates defined in Article 7 herein:
8.1 Having a Grade I work safety standardization certificate;
8.2 Designated as deserving of commendation in the field of work safety according to law.
If an employer has a Grade II work safety standardization certificate, its contribution rate shall be lowered by one tier on the basis of the variable contribution rate tier defined in Article VII herein.
Contribution rates may not be lowered beyond the minimum applicable contribution rate for its industry category.
Article 9.If an employer was, in accordance with law, designated as a recipient of penalties in the field of work safety (including all work safety and occupational hazard “blacklists”) in the previous calendar year, its contribution rate shall be raised by two tiers on the basis of the variable contribution rate tier defined in Article VII and Article VIII herein. Contribution rates may not be raised beyond the maximum applicable contribution rate for its industry category.
Article 10.If an employer is entitled to a decrease in its contribution rate with respect to its industry benchmark contribution rate according to the provisions of Article VII and Article VIII herein, but was found to be in any of the following circumstances in the previous calendar year upon formal investigation, its work injury insurance contribution rate will not be lowered, and the benchmark contribution rate for its industry shall apply:
10.1 It has outstanding work injury insurance contributions;
10.2 It has defrauded the work injury insurance system;
10.3 It has understated or concealed the total wages subject to insurance contributions or the number of employees thereto.
Article 11.If an employer believes it meets the conditions for enjoying preferential contribution rates, it shall submit a valid Grade I or Grade II work safety standardization certificate to the municipal social security agency before the end of March in the year in which variable contribution rates are implemented. The municipal social security agency shall submit the valid Grade I or Grade II work safety standardization certificate to the municipal emergency management authority before April 10 for verification, which shall inform the municipal social security agency of the results before April 20. An employer thus verified to be qualified will be entitled to preferential contribution rates. To confirm the accurate contribution rate tier for the employer, the municipal social security agency shall inquire with the municipal emergency management authority about the employers listed according to law as deserving of commendation or a recipient of penalty in the field of work safety and their relevant information before April 10 of the current year.
The municipal social security agency shall be responsible for preparation of the implementation plan for the variation of work injury insurance contribution rates in Guangzhou on a regular basis according to these Measures, and shall release the list of employers that will be subject to variable work injury insurance contribution rates, their payout-contribution rate, their variable contribution rate tier, the determination basis, and other relevant information for a period not less than 10 working days in May of the current year.
If an employer disagrees with the new contribution rate to be determined by a relevant agency, it may raise the dispute to the municipal social security agency for reassessment. If such to-be-determined contribution rate for the employer is inappropriate, the municipal social security agency shall correct it and notify the employer.
After the announcement expires, the municipal social security agency shall provide the confirmed employer work injury insurance contribution rates to the Guangzhou Municipal Tax Office before June 15 of the current year. The Guangzhou Municipal Tax Office shall collect work injury insurance contributions from employers as per the confirmed rates.
Article 12.Errors in employer contribution rates confirmed by the municipal social insurance agency shall be corrected. If such errors result in an employer overpaying more or underpaying work injury insurance contributions, shortfalls or refunds shall be handled in accordance with the relevant procedures in effect for social insurance contributions.
Article 13.If an employer disagrees with work injury insurance contribution rates determined by the municipal social security agency, it may apply for administrative reconsideration or lodge an administrative lawsuit according to law, but the implementation of the original contribution rate shall not suspended during the period of reconsideration or litigation.
Article 14.The Guangzhou Municipal Human Resources and Social Security Bureau shall strengthen guidance for the municipal social security agency on the implementation of policies on work injury insurance contribution rates.
The municipal social security agency shall report the implementation progress and effect of variable work injury insurance contribution rates in Guangzhou to the Guangzhou Municipal Human Resources and Social Security Bureau and the Municipal Finance Bureau, as the basis of reference for further improvements in policies with respect to contribution rates.
Article15.For the purpose of the Measures, employers with a Grade I or Grade II work safety standardization certificate refer to those employers whose overall work safety conditions have been rated to meet the corresponding standardization tiers according to law. This excludes circumstances where only some of the affiliates, projects or facilities of an employer have been rated to meet the work safety standardization grades.
Article 16.The Measures shall come into force on April 15, 2020 for a period of five years. The Notice of the Guangzhou Municipal Human Resources and Social Security Bureau, Guangzhou Municipal Finance Bureau, Guangdong Provincial Tax Service, State Taxation Administration and the Guangzhou Municipal Administration of Work Safety on the Issuance of Measures for the Management of Variable of Work Injury Insurance Contribution Rates in Guangzhou (Sui Ren She Gui Zi [2020] No. 8) is concurrently repealed.