• Last updated:2021-10-18

【Introduction】

　Labor insurance is a compulsory social insurance based on the principle of self-help and mutual help. It employs the risk sharing approach and combines the strength of the masses with government to protect labor's maintenance, while promoting social security.

【Insured persons】

　Labor insurance is composed of the incumbents, and is divided into compulsory and voluntary insurance.

1. Compulsory insurance
   Article 6 of the Labor Insurance Act stipulates that workers above 15 full years and below 65 years of age shall all be insured under this program as insured persons, with their employers, or the organizations or institutes to which they belong reckoned as the insured units:
   (1) Industrial workers employed by public or private factory, mine, salt field, range, pasturage, forest or tea plantation with more than five employees, as well as workers employed by a communication or transportation enterprise, or by a public utility;
   (2) Workers employed by a company or firm with more than five employees;
   (3) Employees in a journalistic, cultural, non-profit organization or cooperative enterprise with more than five persons;
   (4) Employees of government offices or public or private schools who are not legally entitled to join civil servants' insurance or the insurance of teachers and employees of private schools;
   (5) Workers employed in fishing production;
   (6) Persons receiving vocational training in vocational training institutes registered with the government;
   (7) Members of an occupational union who have no definite employer or who are self-employed; and
   (8) Fishermen who belong to Class A of Fishermen's Association and are either self-employed or do not have a definite employer.
   Preceding provisions contain that apply to workers whose employment has been recognized by the competent authority in accordance with the Employment Service Act or related law, and foreign workers employed in accordance with the law.
   
   
2. Voluntary insurance
   Paragraph 1, Article 8 of the Labor Insurance Act stipulates persons who may voluntarily join the labor insurance:
   (1) Persons employed in occupations outside of those mentioned in paragraph 1 of article 6;
   (2) Persons employed in enterprises which have less than five employees in occupations mentioned in paragraph 1 subparagraphs (1) to (3) inclusive of article 6;
   (3) Employers concurrently engaged in laboring services;
   (4) Seamen serving in vessels abroad-who are members of the Chinese Seamen's Union or the Association of Chinese Ship owners.

【Insurance coverage】

　From after the beginning and before the end of the effective period of the insurance, an insured person or his beneficiary may claim insurance benefit payments pursuant to the provisions of the Labor Insurance Act. Therefore, insurance coverage is closely related to the benefits of insured persons or their beneficiaries.

　Insured units shall notify insurer on the same day when the insured persons of the beginning or ending of their insurance coverage the day insured persons start or end their employment. Where an insured unit does not notify an insured person on the day insured persons start or end their employment, the insured unit shall be punished in accordance with Article 72 of the Labor Insurance Act, and the beginning of the insured person's coverage will be the day after the insurer is notified.

• Source:Department of Labor Insurance
• Publication Date:2015-04-20
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