China to Build Social Security System

Commensurate with Reality

Xinhua 

China

September 15, 2006

China aims to build a social security system commensurate with its reality and economic development stage, China 's Minister of Labor and Social Security Tian Chengping said on Thursday.

The Chinese government has made "social security for more people" the primary goal for the development of social security system, said Tian in a speech delivered at the Brookings Institution.

"The coverage of social security will be extended to workers in the non-state economic sector, workers in flexible forms of employment and migrant workers," he said.

By the end of 2005, the number of workers in China covered by the basic old-age pension system stood at 174 million, by basic medical insurance system 137 million, by work injury insurance 84 million and maternity insurance 54.08 million, he said.

"In 2005, 22.34 million people enjoyed benefits under the minimum living standard security program for urban residents," said the Chinese minister.

From 1998 to 2005, the old-age pension fund increased from less than 150 billion yuan (about 18.7 billion U.S. dollars) to 500 billion yuan (about 62.5 billion dollars), up nearly 20 percent annually, Tian said.

Meanwhile, financial departments at all levels have contributed a huge amount of capital to social security.

To address the payment pressure to be brought along by the ageing population, the central government has established a national social security fund as a strategic reserve, which so far has accumulated over 200 billion yuan (about 25 billion dollars), he added.