China had seen 103.73 million people participate in the unemployment insurance scheme by the end of 2003, according to a white paper issued by the Information Office of the State Council on Tuesday.

The white paper, titled China's Social Security and Its Policy, also revealed that China provided unemployment insurance benefits of varying time limits to 7.42 million laid-off employees last year.

The white paper said the Chinese government issued in 1999 the "Regulations on Unemployment Insurance," which effectively standardized and improved the unemployment insurance system.

According to the regulations, all enterprises and institutions in urban areas and their employees must participate in the unemployment insurance program.

The unemployed person whose former employers and himself or herself have continually paid unemployment insurance premiums for more than one year but less than five years are eligible for benefits for up to 12 months. If they have paid the premiums for more than five years but less than 10 years, the unemployed are eligible for benefits for up to 18 months. The benefits can last 24 months if their payment exceeds 10 years, stipulate the regulations.

Employers are also required to pay unemployment insurance premiums for their farmers-turned-contract-workers. Those who have worked for one year continuously, who do not renew their contracts upon expiration or who terminate their contracts before they expire can apply for a living allowance, which shall come in a lump sum depending on the length of time they have been employed.

While guaranteeing the basic livelihood of the unemployed, China has also strengthened the link between unemployment insurance services and re-employment services, said the white paper.

According to the while paper, the state tries to help the unemployed to enhance their competitiveness in both skills and mentality through prompt registration of unemployment, active provision of employment information and giving comprehensive employment guidance and job agency services.

"It also increases the input of unemployment insurance funds into job agency services and occupational training," the white paper said.

Meanwhile, the Chinese government also set up a basic livelihood guarantee system for people laid off from state-owned enterprises in 1998, in view of the increased pressure on state-owned enterprises in re-positioning their redundant personnel and the inadequate bearing capacity of the unemployment insurance.

Under the system, re-employment service centers have been established in all state-owned enterprises with laid-off personnel.

They offer laid-off people basic livelihood allowances and also pay old-age, medical and unemployment insurance premiums for them, the white paper said.

From 1998 to 2003, some 24 million laid-off people from state-owned enterprises in China had registered at such centers, and nearly 19 million of them had found new jobs.

With the steady improvement of the unemployment insurance system and the increase of the fund accumulations, state-owned enterprises have ceased to establish any new re-employment service centers since 2001, and registration for the newly laid-off also stopped.

"Instead, enterprises just terminate their labor contracts according to law, and the laid-off persons will then be entitled to unemployment insurance benefits according to relevant regulations," said the white paper.

It also pointed out that the problems of surplus labor force and irrational employment structure will still exist for some time in the future, and the unemployment insurance will continue to face considerable pressure.

The Chinese government will make every effort to expand the coverage of unemployment insurance, and standardize fund raising and payment as well as its use and management. While guaranteeing the basic livelihood of unemployed people, it will give further play to the role of unemployment insurance in promoting re-employment, the white paper said.

Source: Xinhua