Gov't widens social security net
By Sun Xiaohua (China Daily)
Updated: 2006-09-25 09:10
China will extend its social security coverage to employees of private
businesses, migrant workers and other groups, the top official in charge of
social security said at a forum held in Beijing over the
weekend.
"Covering a large number of people is one of the social security
system's fundamental principals," said Tian Chengping, minister of labour and
social security, at the first China Social Security Forum.
"Only broad
coverage brings equality. Therefore, our mission that social security should
cover more people is a priority," he said.
Under the new rules, the
interests of migrant workers will get special attention.
Tian promised to
make sure they get work injury insurance, and said the government would
encourage them to participate in illness insurance and explore pension schemes
for them.
The government also aims to provide employment, training and
social security services to farmers who have lost their land.
However,
such promises fall short of what is needed, according to Khalid Malik, who is
the United Nations' resident co-ordinator in China.
"China has made a
good beginning to set up a social security system," said Malik. "But the system
needs to be extended to cover rural areas."
Malik urged the authorities
to pay attention to the impact of increased labour mobility when it improves its
social security system.
He said social services should be provided not
only to migrant workers, but also to the families that they leave
behind.
"The demand for reliable rural social security arrangements is
growing just as the active rural labour force that can contribute to their
financing is shrinking," he said.
And since women are disproportionately
represented in the group remaining in the countryside, issues of social security
in rural areas also have to take into account gender issues.
The pension
policy today, according to Malik, also faces challenges from China's shifting
demographics.
A recent World Bank paper indicated that the system
dependency ratio, which means the number of old people as a proportion of those
working, will increase rapidly over the next few years.
The UN suggests
China use its general budget to subsidize pensions for the next group of
retirees.
By the end of 2005, the total income of five social insurance
funds for older people, those who are ill, the unemployed, those suffering
from work-related injuries and pregnant women reached 696.8 billion yuan
(US$87 billion). By last year there were 174.87 million old people and 106.48
million who were jobless.
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