According to "Provisions of Shanghai Municipality
on Pension Insurance of Urban Employees", the adjustment
of contribution base of employees' social insurance premium
for the year 2007 has started. This year, the government
will continue to reinforce the inspection and management
of social insurance contribution. The Standing Committee
of the National People's Congress, while deliberating the
draft of Labor Contract Law at the meeting held recently,
put forth some decisions to protect laborers' basic rights
and interests such as gradually realizing national-wide
mobility of the individual accounts of pension. 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 your company of
issues concerning the contribution of Chinese employees'
social insurance premium for the year 2007.
1. The social insurance contribution base shall be settled
according to employee's average monthly salary of the previous
year. Declaration of the annual salary of each employee
of your company in the previous year (January through December
in 2006) is required. For those whose average monthly salary
is above 300% of the city average in the previous year,
the actual salary shall be declared and 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. Composition of Social Insurance for 2007 is as follows,
||The contribution base of the
social insurance premium for individual shall be settled
according to the employee's average monthly salary in
2006. The upper and lower limits of the contribution
base shall be settled respectively as 300% and 60% of
the city average monthly salary, 2006 about to be declared.
? The contribution bases of social insurance premium of
Chinese employees, as determined in the present Labor Service
Contract between your company and SFSC, shall be valid till
the end of March 2007.
? The period from the present day to March 10th shall be
the adjustment period for the contribution base of social
insurance premium of Chinese employees. You are requested
to confirm the contribution base of each Chinese employee
of your company. In due course, both parties shall update
relevant cooperation documents or agreements.
After March 10th, SFSC shall declare to the social insurance
administration institution the adjusted contribution bases,
which shall come into effect as of April 1st, 2007.
4. Position code
The position code declaration is an important part of the
adjustment work this year. Each employee's position code-a
six-figure code, is required in the declaration document.
Please fill the relevant column with the position code of
all the employees involved in this year's adjustment. To
get the code, please check the web link as followed http://www.12333.gov.cn/servlet/wonders.ExtWeb.DocServlet?
FLBH=FL02&XGWJ=FL02093.xls . Please download "Position
Code Guide" for reference and copy and paste the code
needed. Or please call SFSC Call Center at 962002 for further
5. Confirmation by signature
According to the relevant regulations in Shanghai, each
employee's signature is required when submitting the declaration.
While declaring the contribution base, companies shall have
every employee sign the declaration form as confirmation.
Companies shall keep file of the original signed materials
and submit a Letter of Commitment stamped by official seal
to Social Insurance Center to ensure that every employee
has signed to confirm his own contribution base.
6. Declaration via email
Facilitated with the progress of governmental e-business,
and the electronic data transmission equipments adopted
by clients, the declaration of the new contribution bases
shall be submitted via email.
The process of email declaration,
① SFSC sends the declaration documents to clients, and confirm
receipt via email;
② Clients fill out and return the declaration documents
③ Please find the declaration documents and specifications
The adjustment of social insurance contribution is in line
with relevant government policy with a time limit. Could
you please kindly determine and confirm with our service
staff the new contribution base for your Chinese employees
no later than March 10th.
Should you have any further queries, please contact our
Your kind cooperation is highly appreciated.
Shanghai Foreign Service Co., Ltd.