Ministry of Human Resources and Social Security, Ministry of Finance

Notice on the Adjustment of Work-Related Injury Insurance Premium Rate Policy

Ministry of Human Resources and Social Security [2015] No. 71

I. On the Division of Industry Work-Related Injury Risk Classes

According to the Classification of the National Economy Industries (GB/T 4754-2011) Classification of industries, according to the degree of risk of work-related injuries in different industries, from low to high, the risk category of work-related injuries in the industry is divided into one to eight categories (see annex).

II. Differentiated rates for industries and the determination of their grades

Industries with different occupational injury risk categories are subject to different industrial benchmark rates for occupational injury insurance. The national benchmark rates of industrial injury insurance corresponding to the risk categories of each industry are 0.2%, 0.4%, 0.7%, 0.9%, 1.1%, 1.3%, 1.6%, 1.9% of the total wages of employees of the employing units in the industry from the first to the eighth category respectively.

The rate brackets within each industry are determined by means of rate fluctuations. Category 1 industries are divided into three bands, i.e., on the basis of the benchmark rate, they can be floated upward to 120% and 150%, and Category 2 to 8 industries are divided into five bands, i.e., on the basis of the benchmark rate, they can be floated upward to 120% and 150% or downward to 80% and 50%, respectively.

The human resources and social security departments of the integrated regions, in conjunction with the financial departments, in accordance with the principle of "expenditure to determine revenue, balance of payments", to reasonably determine the specific standards of the benchmark rate of the industrial injury insurance industry in the region, and to seek the views of the trade union organizations, employers' representatives, and report to the people's governments of the integrated regions for approval and implementation. The specific standard of the benchmark rate may be adjusted in due course in accordance with the changes in the economic and industrial structure of the co-ordination area and the utilization of the industrial injury insurance premiums.

Three: Determination and fluctuation of unit rates

The social insurance administration organizations in the integrated areas determine the rate of occupational injury insurance premiums based on the use of such premiums, the incidence of occupational injuries, the degree of occupational disease hazards, etc., and determine whether to fluctuate the rates among different rate brackets of the industries to which they belong, every one to three years, in accordance with the changes in the above factors. For employers that meet the conditions for fluctuation, they may fluctuate up or down one or two steps at a time. The minimum rate for work-related injury insurance in the co-ordinated region shall not be lower than the benchmark rate for the first category of risky industries in the region. The specific methods of floating rates by the coordinated area human resources and social security departments, business finance departments to develop, and seek the views of trade union organizations, employer representatives.