Notice on the Contribution of Social Insurance Premium of Employees for 2011
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Company:

According to “Provisions of Shanghai Municipality on Pension Insurance of Urban Employees”, the adjustment of contribution base of employees’ social insurance (for urban staff) premium for the year 2011 has started. To ensure that the annual adjustment is accomplished as scheduled, and to fulfill the service duty of Shanghai Foreign Service Co., Ltd. (SFSC), we would like to inform you of several issues concerning the contribution of employees’ social insurance premium for the year 2011.

  1. The social insurance contribution base shall be basically defined according to employees’ average monthly salary of the previous year. Declaration of the actual average monthly salary of each employee in the previous year (January through December in 2010; calculation is based on actual number of months if less than 12 months) is required so as to meet the requirements of the annual inspection of social insurance contribution. For those whose average monthly salary is above 300% of the city average in the previous year, Shanghai Municipal Social Insurance Centre will settle their contribution base as 300% of the city average; for those whose average monthly salary is below 60% of the city average in the previous year, the base shall be 60% of the city average. Declaration submitted, the upper and lower limits of contribution base will be checked by Shanghai Municipal Social Insurance Centre.
  2. According to the document of Shanghai Municipal Social Insurance Centre (Shanghai Labor Insurance Base Publishing [2006] No.7) and the relevant regulations on contribution base adjustment, the declaration rules of contribution base for new employees (with joining date from January to March of 2011) of the current year are as follows,
    • New employees’ social insurance contribution base shall be settled according to the actual salary of the first full month, or of the second month if no full salary incurred in the first month.
    • For new employees joining from January to March in 2011, the contribution base adopted in the first month is exactly the contribution base for April in 2011.
  3. Composition of Social Insurance for 2011 is as follows,

No.

Item

Contribution Base

Contribution Proportion

Sub-
total

Enterprise

Individual

1

Pension Insurance

The contribution base of the social insurance premium for individual shall be settled according to the employee’s average monthly salary in 2010. The upper and lower limits of the contribution base shall be settled respectively as 300% and 60% of the city average monthly salary of the year 2010 which is scheduled to be announced soon.

22%

8%

30%

2

Medical Insurance

12%

2%

14%

3

Maternity Insurance

0.5%

0

0.5%

4

Unemployment Insurance

2%

1%

3%

5

Work-related
Injury Insurance

0.5%

0

0.5%

Total

37%

11%

48%

  1. Schedule of the adjustment of the contribution base of social insurance premium for the year 2011
    • The current contribution base of social insurance premium of your staff shall be valid till the end of March 2011.
    • Period from the present till March 4th shall be the adjustment period for the contribution base of social insurance premium. You are requested to confirm the contribution base of each employee and return “Declaration Form of Social Insurance Contribution Base for 2011” to SFSC before March 4th for the following reasons:
      • The regulation promulgated by Social Insurance Centre in July 2009: employees’ maternity allowance shall be set according to the new contribution base of April delcared in March every year. Any adjustment made later than the end of March is not valid on this issue.
      • Accuracy of employees’ average monthly salary data of 2010, which is calculated according to the new contribution base of April declared in March 2011, is the basis for whether the company will be selected for social insurance auditing. Any adjustment made later than the end of March is not valid on this issue.
    • After March 4th, SFSC shall declare to the social insurance administration institution the adjusted contribution base which shall come into effect as of April 1st, 2011.
  2. Position code
    Please fill “Declaration Form of Social Insurance Contribution Base for 2011” correctly with the position code—a six-figure code of all the employees involved in this year’s adjustment. To get the code, please check the following web link, http://www.12333sh.gov.cn/200912333/2009wsbs/bgxz/01/201008/P020101109365779062110.pdf or http://www.efesco.com/pub/notice/2011/0118_1.pdf. Please download “Position Code List of 2011” for reference and then copy and paste the code needed. Or please call SFSC Call Center at 962002 for necessary assistance.
  3. Letter of Commitment
    According to the relevant regulations in Shanghai, each employee’s signature is required for the declaration of his or her average salary. While reporting to us the contribution base via email, please have every employee sign on the declaration form as confirmation. You shall also keep file of the original signed materials and submit “Statement of the Declaration of the Average Monthly Salary of the Year 2010 (Letter of Commitment)” (chopped with your official stamp) to us before April 26th. We will forward the original to the social insurance centre.
  4. Declaration via email
    The declaration of the new contribution base shall be submitted via email. The process of declaration is as follows,
    • We send the declaration documents to you via email and will confirm receipt with you then. Please find the declaration documents and specifications in attachment.
    • Please fill out and return the completed declaration documents via email and submit the original copies of Letter of Commitment to our relevant service centers.

The adjustment of social insurance contribution is required by the relevant government policy and with a time limit. Please kindly determine and confirm with our service staff the new contribution base for your employees by March 4th.

Should you have any further queries, please contact our service centers.

Your kind cooperation is highly appreciated.

Shanghai Foreign Service Co., Ltd.

Appendix:
1. Declaration Form of Social Insurance Contribution Base for 2011 with Specification
2. Statement of the Declaration of the Average Monthly Salary of the Year 2010 (Letter of Commitment)
3. Relevant Rules and Policies on Salary by Government

    • Labor Social Insurance Centre Notice [2006] No.60
    • Shanghai Labor Insurance Base Publishing [2006] No.7
    • Supplementary Specifications on the Calculation of Employees’ Contribution Base