Regulations on Work-Related Injury Insurance (Revised in 2010)

Order of the State Council No. 586

December 20, 2010

(Promulgated by the Order of the State Council No. 375 on April 27, 2003; revised in accordance with the Decision of the State Council on the Revision of the Regulations on Work-Related Injury Insurance)

Chapter I General Provisions

Article 1 These Regulations are formulated in order to guarantee the availability of medical treatment and economic compensation to employees who suffer from work-related accidental injuries or occupational diseases, facilitate the prevention of work-related injuries and professional rehabilitation, and spread work-related injury risks assumed by employers.

Article 2 Enterprises, public institutions, social bodies, privately-owned non-enterprise entities, foundations, law firms, accounting firms, and other organizations as well as individual business operators with hired workers within the territory of the People's Republic of China in China ( hereinafter referred to as the "employers") shall participate in work-related injury insurance and pay work-related injury insurance premiums for all of their staff members or hired workers (hereinafter referred to as employees) in accordance with the provisions hereof.
The employees of public institutions, social bodies, privately-owned non-enterprise entities, foundations, law firms, accounting firms, and other organizations and the hired workers of individual business operators within the territory of the People's Republic of China shall have the right to enjoy the benefits of work-related injury insurance in accordance with the provisions hereof.


Article 3 The collection and payment of work-related injury insurance premiums shall be carried out in accordance with the provisions of the Interim Regulations on the Collection and Payment of Social Insurance Premiums relating to the collection and payment of basic endowment insurance premiums, basic medical care insurance premiums and unemployment insurance premiums.

Article 4 An employer shall make known within itself the relevant details of its participation in work-related injury insurance.
An employer and its employees shall abide by the laws and regulations regarding safe production and the prevention and treatment of occupational diseases, implement rules and standards for safety and sanitation, prevent the occurrence of work-related injury accidents and avoid and reduce occupational diseases.
Where an employee suffers from work-related injury, the Employer shall adopt measures to ensure that such employee receives timely medical treatments.

Article 5 The administrative department of social insurance of the State Council shall be in charge of the work of work-related injury insurance throughout China.
The administrative departments of social insurance of local people's governments at the county level and above shall be in charge of work-related injury insurance work within their respective administrative areas.
The social insurance agencies established by the administrative departments of social insurance in accordance with the relevant provisions of the State Council (hereinafter referred to as agencies) shall undertake the specific affairs of work-related injury insurance.

Article 6 The administrative departments of social insurance and other departments shall seek the opinion of trade unions and representatives of employers when formulating policies and standards for work-related injury insurance.

Chapter II Work-related Injury Insurance Funds

Article 7 Work-related injury insurance funds consist of work-related injury insurance premiums paid by employers, interest on work-related injury insurance funds and other funds included in the work-related injury insurance funds in accordance with law.

Article 8 The premium rate for work-related injury insurance shall be determined on the basis of the principles of payment-based receipt and balance between receipt and payment.
The State shall determine differential premium rates for industries according to the degree of risk of work-related injuries in different industries and shall determine several tiers of premium rates within each industry on the basis of circumstances such as the employment of work-related injury insurance premiums and the frequency of occurrence of work-related injuries. Differential premium rates for industries and intra-industry premium rate tiers shall be formulated by the administrative department of social insurance of the State Council and shall be promulgated and implemented upon approval by the State Council.
The agencies for regions which are integrally planed shall, on the basis of such circumstances such as the employment of work-related injury insurance premiums and the frequency of occurrence of work-related injuries of an employer, determine a premium rate payable by the employer by applying an appropriate premium rate tier applicable to the industry in which the employer is.


Article 9 The administrative department of social insurance of the State Council shall periodically obtain the details of receipt and payment of work-related injury insurance funds of all of the integrally planed regions throughout China, and shall promptly put forward a plan for the adjustment of differential premium rates for industries and intra-industry premium rate tiers. Such plan shall be promulgated and implemented upon approval by the State Council.

Article 10 Employers shall pay work-related injury insurance premiums on time. Employees need not pay work-related injury insurance premiums themselves.
The amount of work-related injury insurance premium payable by an employer shall be the total payroll of its employees multiplied by its premium rate.
For any industry in which it is difficult to pay work-related injury insurance premiums on the basis of the gross amount of wages, specific methods for paying such premiums shall be specified by the administrative department of social insurance of the State Council.


Article 11 Work-related injury insurance funds shall be gradually subject to planning as a whole on a province-wide basis.
An inter-region industry or an industry with a high degree of production mobility may participate in the work-related injury insurance in regions which are planed as a whole by way of relative concentration. Specific measures shall be formulated by the administrative department of social insurance of the State Council in conjunction with the department in charge of the relevant industry.

Article 12 Work-related injury insurance funds shall be deposited into a financial account dedicated for social security funds and shall be used for the payment of benefits of work-related injury insurance, the fees for the work capability assessment, the publicity and trainings with respect to work-related injury prevention and other expenses prescribed herein and the payment of other expenses required by laws or regulations to be used for work-related injury insurance.
Specific measures for the withdrawal ratio, use and administration of work-related injury prevention expenses shall be specified by the administrative department of social insurance of the State Council in conjunction with the department of finance, the administrative department of public health and the department of safe production supervision and administration under the State Council.
No entity or individual may use the work-related injury insurance funds for investment and operation, construction or reconstruction of offices or distribution of bonuses, or appropriate such funds for other purposes.

Article 13 A certain percentage of the work-related injury insurance funds shall be maintained as reserves for the payment of work-related injury insurance benefits in the event of major accidents in integrally planed regions. Where the reserves are insufficient for such payment, the people's governments of such regions shall make an advance payment. The specific ratio of reserves to the total amount of funds and the procedures for the use of reserves shall be specified by the people's governments of provinces, autonomous regions or municipalities directly under the Central Government.

Chapter III Determination of Work-related Injuries

Article 14 Under any of the following circumstances, an employee shall be determined as suffering a work-related injury:
1. Where he is injured in an accident at work during working hours in the workplace;
2. Where he is injured in an accident while engaging in preparatory or winding-up work related to his work before or after working hours in the workplace;
3. Where he is injured by violence or in any other accident in connection with the performance of his duties during working hours in the workplace;
4. Where he suffers from an occupational disease;
5. Where, during a work-related travel, he is injured in connection with his work or his whereabouts become unknown after an accident;
6. Where he is injured in a traffic accident for which he is not principally responsible or in a city rail transit, passenger ferry and train accident while going to or returning from work.; or
7. Other circumstances specified in laws and administrative regulations in which it is determined that he suffers a work-related injury.


Article 15 Under any of the following circumstances, an employee shall be deemed as suffering a work-related injury:
1. Where he dies immediately or within 48 hours after emergency treatment for a disease suddenly arising during working hours in the workplace;
2. Where he is injured in emergency rescue and disaster relief efforts and any other act to protect the interests of the State or the public interest; or
3. Where he is injured and disabled in war or on duty while in military service and has obtained a certificate for injured and disabled soldiers, and suffers from a relapse of the old injury while being employed by the employer.
Where an employee falls under the circumstances of Item (1) or (2) of the preceding paragraph, he shall be entitled to work-related injury insurance benefits in accordance with the relevant provisions hereof. Where an employee falls under the circumstance of Item (3) of the preceding paragraph, he shall be entitled to work-related injury insurance benefits other than the lump-sum disability allowance in accordance with the relevant provisions hereof.


Article 16 Under any of the following circumstances, an employee who meets the provisions of Articles 14 and 15 hereof shall not be determined or deemed as suffering a work-related injury:
1. Where he commits a crime willfully;
2. Where he is intoxicated or taking addictive drugs; or
3. Where he inflicts harm on himself or commits suicide.


Article 17 Where an employee is injured in an accident or is diagnosed or deemed after authentication as having an occupational disease pursuant to the provisions of the Law on the Prevention and Treatment of Occupational Diseases, his employer shall file an application for determination of work-related injuries to the administrative department of social insurance of an integrally planed region within 30 days of the date of occurrence of the accidental injury or the date of diagnosis or authentication of the occupational disease. Under special circumstances, the time limit for application may, subject to the consent of the administrative department of social insurance, be extended as appropriate.
Where the employer fails to file an application for determination of work-related injuries pursuant to the preceding paragraph, the employee with the work-related injury, his immediate family members or the trade union may directly file an application for determination of work-related injury to the administrative department of social insurance of an integrally planed region where the employer is located within one year of the date of occurrence of the accidental injury or the date of diagnosis or authentication of the occupational disease.
Matters related to the work-related injury which are required under the first paragraph of this Article to be ascertained by the administrative department of social insurance at the provincial level shall be handled in accordance with the principle of territory-based jurisdiction by the administrative department of social insurance of a city divided into districts where the employer is located.
Where the employer fails to file an application for determination of work-related injuries within the time limit prescribed in the first paragraph of this Article, the relevant expenses incurred during the time limit such as the work-related injury benefits which comply with the provisions hereof shall be borne by the employer.


Article 18 To file an application for determination of work-related injuries, the following materials shall be submitted:
1. An application for determination of work-related injuries;
2. Evidence materials for any labor relationship with the employer (including the de facto labor relationship); and
3. A certificate of medical diagnosis or a certificate of diagnosis of occupational disease (or a letter of authentication of diagnosis of occupational disease).
The application for determination of work-related injuries shall include the basic details of the accident such as the time and place of its occurrence, the cause of the accident and the degree of injury suffered by the employee.
Where materials provided by the applicant for determination of work-related injuries are incomplete, the administrative department of social insurance shall inform the applicant of all materials that need to be supplemented in a written notice. After the applicant has supplemented the materials as required by the written notice, the administrative department of social insurance shall accept the application.


Article 19 After the administrative department of social insurance has accepted an application for determination of work-related injuries, it may, in light of the requirements of the examination and verification of the application, investigate for the purpose of verification the accident and injury and the employer, the employee, the relevant trade union, the relevant medical institution and other relevant departments shall provide assistance. The authentication of diagnosis of occupational disease and diagnosis dispute shall be handled in accordance with the relevant provisions of the Law on the Prevention and Treatment of Occupational Diseases. Where a certificate of diagnosis of occupational diseases or a letter of authentication of diagnosis of occupational diseases is obtained in accordance with the law, the administrative department of social insurance shall not carry out further investigations for verification purposes.
Where an injury is considered as a work-related one by the employee or his immediate family members but not by the employer, the burden of proof shall be borne by the employer.


Article 20 The administrative department of social insurance shall make a decision on determination of work-related injuries within 60 days of the date of acceptance of the application for determination of work-related injuries and shall send a written notice to the employee who applies for determination of work-related injuries or his immediate family members and his employer.
With respect to any application for determination of work-related injuries involving clear facts and definite obligations and rights, the administrative department of social insurance shall make a decision on determination of work-related injuries within 15 days of the date of acceptance of any such application.
Where a decision on determination of work-related injuries relies on the conclusion of a judicial authority or relevant competent administrative authority, the time limit for making the decision on determination of work-related injuries shall be suspended during the period in which the judicial authority or relevant competent administrative authority does not reach a conclusion.
Any staff member of the administrative department of social insurance who has interest in the applicant applying for determination of work-related injuries shall withdraw from the case.


Chapter IV Work Capability Assessment

Article 21 Where an employee suffers a work-related injury and is disabled after the injury is in a stable condition upon treatment or his work capability is affected, the employee shall go through a work capability assessment.

Article 22 A work capability assessment is an assessment of the degree of impairment in work function and self-care ability.
Impairment in work function is classified into ten disability grades, with the grade one being the most severe disability and the grade ten being the mildest disability.
Impairment in self-care ability is classified into three grades: total self-care disability, substantial self-care disability and partial self-care disability.
Standards for work capability assessment shall be formulated by the administrative department of social insurance of the State Council in conjunction with the administrative department of public health and other departments of the State Council.


Article 23 An application for work capability assessment shall be filed by an employer, an employee with a work-related injury or his immediate family members to the work capability assessment committee of a city divided into districts, and the decision on determination of work-related injuries and information relevant to the medical treatment of the work-related injury of the employee shall be provided.


Article 24 The work capability assessment committees of provinces, autonomous regions, municipalities directly under the Central Government and cities divided into districts shall be composed of representatives of the administrative department of social insurance, the administrative department of personnel, the administrative department of public health, trade unions, agencies and employers of the provinces, autonomous regions, municipalities directly under the Central Government and cities divided into districts respectively.
The work capability assessment committee shall set up a pool of medical and health experts. Medical and health professional technicians included in the expert pool shall satisfy the following requirements:
1. Possessing the qualification for a senior technical position in the medical or health profession;
2. Possessing the relevant knowledge for work capability assessment; and
3. Having sound professional conduct.

Article 25 After the work capability assessment committee of a city divided into districts has received an application for work capability assessment, it shall select three or five relevant medical and health experts at random from its expert pool to form an expert panel to issue an assessment opinion. The work capability assessment committee of the city divided into districts shall reach a work capability assessment conclusion with respect to the employee with a work-related injury on the basis of the assessment opinion of the expert panel. Where necessary, it may entrust a qualified medical institution to assist in the relevant diagnosis.
The work capability assessment committee of the city divided into districts shall reach a work capability assessment conclusion within 60 days of the date of receipt of the application for work capability assessment. The time limit for reaching a work capability assessment conclusion may be extended for a period of 30 days where necessary. The work capability assessment conclusion shall be served in a timely manner upon the entity or individual who applies for the assessment.

Article 26 Where any entity or individual who applies for an work capability assessment is dissatisfied with the assessment conclusion of the work capability assessment committee of a city divided into districts, the entity or individual may, within 15 days of the date of receipt of the assessment conclusion, apply to the work capability assessment committee of the province, autonomous region or municipality directly under the Central Government for reassessment. The work capability assessment conclusion of the work capability assessment committee of the province, autonomous region or municipality directly under the Central Government shall be final.


Article 27 A work capability assessment shall be conducted in an objective and impartial manner. Where any member of the work capability assessment committee or expert who participates in the assessment is related to the parties concerned, he shall withdraw from the assessment.

Article 28 Where, within one year after an work capability assessment conclusion is reached, the employee with a work-related injury or his immediate family members, his employer or the agency believes that there is a change in his disability, he may apply for a work capability reexamination and assessment.

Article 29 The time limit for a work capability assessment committee to make another assessment or review assessment in accordance with the provisions of Articles 26 and 28 hereof shall be subject to the provisions of Paragraph 2 of Article 25 hereof.

Chapter V Work-related Injury Insurance Benefits

Article 30 Any employee who receives treatment for work-related accidental injury or occupational disease shall be entitled to work-related injury medical benefits.
An employee shall seek medical treatment for a work-related injury at a medical institution which has entered into a service agreement. In the case of an emergency, the employee may first seek emergency treatment at the nearest medical institution.
Where expenses required for treating the work-related injury fall within the catalogue of treatments, the catalogue of pharmaceuticals and hospitalization service standard for work-related injury insurance, they shall be paid from work-related injury insurance funds. The catalogue of treatments, the catalogue of pharmaceuticals and hospitalization service standard for work-related injury insurance shall be prescribed by the administrative department of social insurance of the State Council in conjunction with the administrative department of public health, the pharmaceutical regulatory department and other departments of the State Council.
Meal allowance for an employee who is hospitalized for the treatment of a work-related injury and travel and food and boarding expenses required for the employee with the work-related injury to seek medical treatment outside an integrally planed region with the referral certificate of a medical institution and the consent of the handling agency, shall be paid from work-related injury insurance funds and the specific standards for such payment shall be specified by the people's government of the integrally planed region.
An employee with a work-related injury shall not be entitled to work-related injury medical benefits for treatment of a disease not arising from work-related injury, and such matter shall be handled in accordance with measures for basic medical insurance.
Where expenses incurred for the rehabilitative treatment of an employee with a work-related injury at a medical institution that has entered into a service agreement satisfy the applicable provisions, they shall be paid from work-related injury insurance funds.

Article 31 Where administrative review or administrative litigation occurs after the administrative department of social insurance makes a decision on determination of work-related injuries, the payments of medical expenses to the employee with a work-related injury for medical treatment of the work-related injury shall not be stopped during the period of administrative review or administrative litigation.


Article 32 An employee with a work-related injury may, due to daily life or employment needs and subject to the confirmation of the work capability assessment committee, wear artificial limbs, orthosis, artificial eyes and false teeth or equip himself with an aiding device such as a wheelchair, and the necessary costs shall be paid from work-related injury insurance funds at a rate specified by the State.

Article 33 Where an employee needs to suspend his work in order to receive medical treatment for a work-related accidental injury or an occupational disease, his original wage and welfare benefits shall remain unchanged and payable monthly by his employer during the suspension-of-work-with-pay period.
The suspension-of-work-with-pay period shall normally not exceed 12 months. Where the injury is severe or the circumstances involve are exceptional, such period may, subject to confirmation by the work capability assessment committee of a city divided into districts, be extended as appropriate. However, such extension shall not exceed 12 months. After the disability grade of the employee with a work-related injury is assessed, the original benefits shall be terminated, and the employee shall be entitled to disability benefits according to the relevant provisions of this Chapter. Where the employee with a work-related injury still needs medical treatment after the end of the suspension-of-work-with-pay period, the employee shall continue to enjoy work-related injury medical benefits.
Where an employee with a work-related injury and self-care disability needs nurse care during the suspension-of-work-with-pay period, his employer shall be responsible for nurse care.


Article 34 Where an employee with a work-related injury has been assessed with respect to his disability grade and confirmed by the work capability assessment committee as requiring daily life care, expenses incurred for daily life care shall be paid monthly from work-related injury insurance funds.
Expenses incurred for daily life care shall be paid according to the three different grades of self-care disability, namely, total self-care disability, substantial self-care disability and partial self-care disability, and the rates shall be 50%, 40% or 30% of the average monthly wage of employees in an integrally planed region in the preceding year respectively.


Article 35 Where an employee with a work-related disability is assessed as having a disability between grade one and grade four, the labor relationship shall remain unchanged, and the employee shall withdraw from his post and enjoy the following benefits:
1. A disability allowance paid from the work-related injury insurance funds according to the disability grade in a lump sum at any of the following rates: for grade one disability, the employee's wages for 27 months; for grade two disability, the employee's wages for 25 months; for grade three disability, the employee's wages for 23 months; and for grade four disability, the employee's wages for 21 months;
2. A monthly disability subsidy paid from the work-related injury insurance funds at any of the following rates: for grade one disability, 90% of the employee's wage; for grade two disability, 85% of the employee's wage; for grade three disability, 80% of the employee's wage; and for grade four disability, 75% of the employee's wage. Where the actual amount of the disability subsidy is lower than the local minimum wage standard, the difference shall be paid from the work-related injury insurance funds; and
3. The disability subsidy shall be terminated after the employee reaches the retirement age and go through retirement formalities and the employee shall then be entitled to basic endowment insurance benefits in accordance with the relevant provisions of the State. Where the basic endowment insurance benefits are lower than the disability subsidy, the difference shall be paid from the work-related injury insurance funds.
Where an employee with a work-related disability is assessed as having a disability between grade one and grade four, the employer and the employee shall base on the disability subsidy to pay the basic medical care insurance premium.


Article 36 Where an employee with a work-related disability is assessed as having a disability between grade five and grade six, the employee shall be entitled to the following benefits:
1. A disability allowance paid from work-related injury insurance funds according to the disability grade in a lump sum at any of the following rates: for grade five disability, the employee's wages for 18 months; and for grade six disability, the employee's wages for 16 months; and
2. His labor relationship with the Employer shall remain unchanged and the employer shall arrange appropriate work for the employee. Where it is difficult to arrange any work for the employee, the employer shall pay a monthly disability subsidy to the employee at any of the following rates: for grade five disability, 70% of the employee's wage and for grade six disability, 60% of the employee's wage, and the employer shall also pay as required on behalf of the employee all the social insurance premiums payable by the employee. Where the actual amount of the disability subsidy is lower than the local minimum wage standard, the difference shall be made up by the employer.
Upon the request of an employee with a work-related injury, the labor relationship between the employee and the employer may be dissolved or terminated, the work-related injury medical allowance shall be paid to the employee in a lump sum from the work-related injury insurance funds and the employer shall pay to the employee a disability employment allowance in a lump sum. Specific standards for the lump-sum work-related injury medical allowance and the lump-sum disability employment allowance shall be specified by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.


Article 37 Where an employee with a work-related disability is assessed as having a disability of grade seven to ten, the employee shall be entitled to the following benefits:
1. A disability allowance paid from work-related injury insurance funds according to the disability grade in a lump sum at any of the following rates: for grade seven disability, the employee's wages for 13 months; for grade eight disability, the employee's wages for 11 months; for grade nine disability, the employee's wages for 9 months; and for grade ten disability, the employee's wages for 7 months; and
2. Upon termination of the labor or employment contract after the expiration of the term thereof, or upon dissolution of the labor or employment contract at the request of the employee, the work-related injury medical allowance shall be paid to the employee in a lump sum from the work-related injury insurance funds and the employer shall pay to the employee a disability employment allowance in a lump sum. Specific standards for the lump-sum work-related injury medical allowance and the lump-sum disability employment allowance shall be specified by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.


Article 38 Where an employee suffers a relapse of a work-related injury and is confirmed as requiring medical treatment, the employee shall be entitled to the work-related injury benefits specified in Articles 30, 32and 33 hereof.

Article 39 Where an employee dies as a result of his work, the immediate family members of the employee shall receive a funeral allowance, a bereavement payment to dependent family members and a lump sum work-related death allowance from work-related injury insurance funds in accordance with the following provisions:
1. The funeral allowance shall be 6 months' average monthly wage of an employee in the integrally planed region in the preceding year;
2. A bereavement payment to dependent family members shall be made at a certain percentage of the employee's wage to each of the family members of the employee who, before the employee's death, is dependent on the employee as the primary source of income and who has no work capability. Rates for such payment are as follows: 40% per month for the spouse, 30% for each of other family members per month, an additional 10% plus the afore-mentioned rate for each widowed elder or orphan per month. The sum of the bereavement payment to all dependent family members so determined shall not be higher than the wage of the employee before his work-related death. The specific scope of dependent family members shall be specified by the administrative department of social insurance of the State Council; and
3. The rate for the lump sum work-related death allowance shall be twenty times of the average per capita disposable income of national urban residents for the previous year.
Where a disabled employee dies as a result of the work-related injury during the suspension-of-work-with-pay period, the immediate family members of the employee shall be entitled to the benefits specified in the first paragraph of this Article.
Where an employee with a disability between grade one and grade four dies after the suspension-of-work-with-pay period, the immediate family members of the employee shall be entitled to the benefits specified in Items (1) and (2) of the first paragraph of this Article.


Article 40 Disability subsidies, bereavement payments to dependent family members and daily life care expenses shall be adjusted from time to time by the administrative department of social insurance of an integrally planed region in light of changes in the average wage and the living expenses of employees. Methods for such adjustment shall be specified by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government.

Article 41 Where, during a business travel, an employee's whereabouts become unknown after an accident or in the course of emergency rescue or disaster relief, his wage shall continue to be paid for three months from the month in which the accident occurred and be terminated on the fourth month, and thereafter the dependent family members of the employee shall be paid a bereavement payment to dependent family members on a monthly basis from work-related injury insurance funds. Where the family members have living difficulties, 50% of the lump sum work-related death allowance may be paid in advance. Where the employee is declared dead by a people's court, the case shall be handled according to the provisions of Article 37 for work-related death.


Article 42 und any of the following circumstances, an employee with a work-related injury shall cease enjoying work-related injury insurance benefits:
1. Where he has lost eligibility to receive the benefits;
2. Where he refuses to undergo a work capability assessment;
3. Where he refuses to receive medical treatment.


Article 43 In case of a division, merger or transfer in respect of the employer, the succeeding entity shall bear the responsibility for work-related injury insurance of the original employer. Where the original employer has already participated in work-related injury insurance, the succeeding entity shall make a change registration for work-related injury insurance with the local agency.
Where the employer is operated on a contract basis, the responsibility for work-related injury insurance shall be borne by the employer that has a labor relationship with the employee.
Where an employee is injured in a work-related accident during the period of a temporary transfer to another entity, the original employer shall bear the responsibility for work-related injury insurance, but the original employer may reach an agreement with the entity on compensation methods.
In the case of the bankruptcy of an enterprise, work-related injury insurance benefits which shall be paid by the enterprise in accordance with the law shall be set aside and paid in accordance with law during liquidation.


Article 44 Where an employee is dispatched to work abroad and is required to participate in local work-related injury insurance in accordance with the laws of the destination country or region, the employee shall participate in local work-related injury insurance and his work-related injury insurance relationship in China shall be suspended. Where the employee cannot participate in local work-related injury insurance, his work-related injury insurance relationship in China shall not be suspended.


Article 45 Where an employee suffers a work-related injury for a second time and is entitled to disability subsidy in accordance with the relevant provisions, the employee shall enjoy the disability subsidy benefits according to the newly determined disability grade.

Chapter VI Supervision and Administration

Article 46 Agencies shall be specifically responsible for the matters of work-related injury insurance and perform the following duties:
1. Collecting work-related injury insurance premiums in accordance with the provisions of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government;
2. Verifying the total payrolls and the number of employees employed by employers, carrying out work-related injury insurance registration and being responsible for keeping records of premium payments of employers and receipts by employees of work-related injury insurance benefits;
3. Carrying out investigations and compiling statistical data in respect of work-related injury insurance;
4. Administering payments from work-related injury insurance funds as required;
5. Assessing work-related injury insurance benefits as required; and
6. Providing free information services to employees with a work-related injury or their immediate family members.

Article 47 Agencies shall enter into a service agreement with medical institutions and aiding device supply institutions on the basis of equal negotiations and shall announce the list of the medical institutions and aiding device supply institutions that have entered into a service agreement. Specific measures shall be formulated by the administrative department of social insurance of the State Council in conjunction with the administrative department of public health and the department of civil affairs and other departments under the State Council respectively.

Article 48 Agencies shall check medical, rehabilitation and aiding device expenses incurred by employees with a work-related injury in accordance with the agreement and the relevant catalogues and standards of the State, and shall settle such expenses in full in a timely manner.

Article 49 Agencies shall periodically publish the details of the receipt and payment of in respect of work-related injury insurance funds and make timely recommendations to the administrative departments of social insurance regarding premium rate adjustments.

Article 50 The administrative departments of social insurance and agencies shall periodically seek opinions from employees with a work-related injury, medical institutions, aiding device supply institutions and all sectors of society on improving the work of work-related injury insurance.

Article 51 The administrative departments of social insurance shall supervise and inspect the collection of work-related injury insurance premiums and the receipt and payment of work-related injury insurance funds in accordance with the law.
Financial departments and audit departments shall supervise the receipt, payment and management of work-related injury insurance funds in accordance with the law.

Article 52 Every organization or individual has the right to report illegal acts relating to work-related injury insurance. The administrative departments of social insurance shall investigate such report in a timely manner, handle it in accordance with the relevant provisions, and maintain the confidentiality of the informant.

Article 53 Trade unions shall safeguard the lawful rights and interests of employees with a work-related injury and conduct supervision over the work-related injury insurance work of employers in accordance with the law.

Article 54 Disputes arising between employees and employers with respect to work-related injuries shall be handled in accordance with the relevant provisions for the settlement of labor disputes.

Article 55 Under any of the following circumstances, the relevant entity or individual may either apply for administrative review in accordance with the law or institute an administrative action with a people's court in accordance with the law:
1. The employee who applies for determination of work-related injuries, his immediate family member or his employer is dissatisfied the decision not to accept the application for the determination of work-related injuries;
2. The employee who applies for determination of work-related injuries, his immediate family member or his employer is dissatisfied with the conclusion of the determination of work-related injuries;
3. The employer is dissatisfied with its premium rate determined by the handling agency;
4. The medical institution or the aiding device supply institution that has entered into a service agreement deems that the handling agency fails to comply with the relevant agreement or provisions; or
5. The employee with a work-related injury or his immediate family members is dissatisfied with the work-related injury insurance benefits verified by the handling agency.

Chapter VII Legal Liability

Article 56 Where an entity or an individual misappropriates work-related injury insurance funds in violation of Article 12 hereof and such act constitutes a criminal offence, the entity or individual shall be pursued for criminal liability in accordance with law. Where the act is not sufficient to constitute a criminal offence, an administrative penalty or disciplinary punishment shall be imposed in accordance with law. The misappropriated funds shall be recovered by the administrative department of social insurance and be included in work-related injury insurance funds. Illegal income which is confiscated shall be handed over to the State treasury in accordance with the law.


Article 57 Where any staff member of the administrative department of social insurance falls under in any of the following circumstances, he shall be subjected to administrative penalty in accordance with the law. Where the circumstances involved are serious and a criminal offence is constituted, any such staff member shall be pursued for criminal liability in accordance with the law:
1. Where he refuses to accept an application for determination of work-related injuries without any proper reason, or determines by fraudulent means a person who does not meet the requirements for work-related injury as an employee with a work-related injury by way of falsehood;
2. Where he fails to properly preserve evidence materials with respect to an application for determination of work-related injury, thereby causing the loss of the relevant evidence; or
3. Where he accepts property from any of the parties concerned.

Article 58 Where an agency commits any of the following acts, the administrative department of social insurance shall order it to make rectifications and impose a disciplinary punishment on the principal person directly in charge and other persons in charge in accordance with the law; where the circumstances are serious and a criminal offence is constituted, they shall be pursued for criminal liability in accordance with the law; where economic loss is caused to the party concerned, the agency shall be liable for compensation in accordance with the law:
1. Where the agency fails to maintain the records of payment of premiums by employers and the payment of work-related injury insurance benefits to employees as required;
2. Where the agency fails to determine work-related injury insurance benefits as required; or
3. Where the agency accepts property from any of the parties concerned.

Article 59 Where a medical institution or aiding device supply institution fails to provide services pursuant to a service agreement, the agency may terminate the service agreement.
Where the agency fails to settle expenses in full on time, the administrative department of social insurance shall order it to make rectifications and the medical institution or aiding device supply institution may terminate the service agreement.

Article 60 Where an employer, an employee with a work-related injury or his immediate family members by fraudulent means obtains work-related injury insurance benefits, or a medical institution or aiding device supply institution by fraudulent means obtains payments from work-related injury insurance funds, the administrative department of social insurance shall order the return of such benefits or payments and impose a fine of no less than two times but not more than five times the amount obtained by fraudulent means. Where the circumstances are serious and a criminal offence is constituted, the relevant party shall be pursued for criminal liability in accordance with the law.


Article 61 Where an organization or individual that is engaged in work capability assessment commits any of the following acts, the administrative department of social insurance shall order it or him to make rectifications and impose a fine of between CNY2,000 and CNY10,000. Where the circumstances are serious and a criminal offence is constituted, the relevant party shall be pursued for criminal liability in accordance with the law:
1. Providing a false assessment opinion;
2. Providing a false diagnosis certificate; or
3. Accepting property from a party concerned.

Article 62 Where an employer is required by these Regulations to participate in work-related injury insurance but fails to do so, the administrative department of social insurance shall order it to participate in the insurance, pay work-related injury insurance premiums payable and pay a late fee in the amount of 0.05% of the premiums from the date of payment default; if those payments fail to be made within the stated time limit, a fine of up to three times the payments in default shall be imposed.
Where an employee employed by an employer that shall participate in work-related injury insurance in accordance with these Regulations but fails to do so suffers a work-related injury, the employer shall make a payment according to such item of work-related injury insurance benefits and at such a rate as is specified herein.
After the employer participates in work-related injury insurance and pay work-related injury insurance premiums and late fees payable, new expenses incurred shall be paid from work-related insurance funds and by the employer in accordance with the provisions of these Regulations.


Article 63 Where an employer, in violation of the provisions of Article 29 hereof, refuses to assist the administrative department of social insurance in investigating and verifying the incident in question, the administrative department of social insurance shall order the employer to make rectifications and impose a fine of more than CNY2,000 but less than CNY20,000.


Chapter VIII Supplementary Provisions

Article 64 For the purposes of these Regulations, total payroll shall refer to the aggregate amount of remunerations directly paid by an employer to all of its employees.
For the purposes of these Regulations, an employee's wage shall refer to the average monthly wage of an employee with a work-related injury for the 12 months before the employee suffers the work-related accidental injury or occupational disease as a result of his work. Where the employee's wage is higher than 300% of the average wage of employees in an integrally planed region, it shall be calculated at 300% of the average wage of the employees in the integrally planed region. Where the employee's wage is lower than 60% of the average wage of the employees in an integrally planed region, it shall be calculated at 60% of the average wage of the employees in the integrally planed region.

Article 65 Where a staff member of a government agency or any public institution or social body whose personnel affairs are managed pursuant to the Civil Servant Law suffers a work-related accidental injury or occupational disease, expenses shall be shall be paid by the entity in which he works. Specific measures shall be specified by the administrative department of social insurance of the State Council in conjunction with the department of finance under the State Council.

Article 66 Where, in a entity that has no business license or has not registered or filed for record in accordance with the law or a entity whose business license has been revoked or whose registration or record filing has been cancelled, an employee suffers an accidental injury or occupational disease, the entity shall pay compensation in a lump sum to the injured employee or the immediate family members in the case of the death of the employee. The compensation standard shall not be lower than the work-related injury insurance benefits specified herein. No employer shall employ child laborers. Where an employer employs a child laborer and causes the disability or death of such a child laborer, the employer shall pay compensation in a lump sum to the child laborer or the immediate family members of the child laborer. The compensation standard shall not be lower than the work-related injury insurance benefits specified herein. Specific measures shall be specified by the administrative department of social insurance of the State Council.
Where a dispute in respect of the amount of compensation arises between the injured employee or the immediate family members of the deceased employee described in the preceding paragraph and the entity concerned, or between the child laborer or the immediate family members of the child laborer specified in the preceding paragraph and the entity concerned, the dispute shall be settled in accordance with the relevant provisions for the settlement of labor disputes.


Article 67 These Regulations shall come into effect on January 1, 2004. Where an employee who suffers an accidental injury or occupational disease before the implementation of these Regulations has not completed the determination of the work-related injury, the provisions of these Regulations shall apply.