Guiding Opinions of the Ministry of Human Resources and Social Security on the Mechanism for Adjusting and Determining Work-related Injury Insurance Benefits has been released

MOHRSS released Guiding Opinions of the Ministry of Human Resources and Social Security on the Mechanism for Adjusting and Determining Work-related Injury Insurance Benefits (REN SHE BU FA [2017] No.58, hereinafter refers to “No.58”) on 28th July 2017. No.58 has adjusted some rules on the work-related injury insurance benefits, by considering many factors, such as the increase of workers’ wages, the change of CPI, the payment ability of work-related injury insurance fund, the adjustments of other relevant social security benefits, and the differences on the benefits among different areas. The main content includes:

1.No.58 requires every province shall adjust the local work-related injury insurance benefits at least once every two years in principle.

2.No. 58 has adjusted the calculation formula of the following items:

(1)The disability allowance

The calculation formula for a worker’s disability due to his work is assessed to fall in Grade 1 to 4: Z1=S×（G×a+X×b）±C

Note: a+b=1，a>b，C≥0。Z1 is the average adjustment amount of the disability allowance for Grade 1 to 4; S is the average amount of the disability allowance for Grade 1 to 4 in the local province (district, or city) in the preceding year; G is the increase rate of the average wages of the workers in the local province (district, or city) in the preceding year; X is the CPI in the local province (district, or city) in the preceding year; a is the weight coefficient of the increase rate of the average wages of the workers; b is the weight coefficient of CPI; C is the comprehensive adjustment amount calculated according to the payment ability of work-related injury insurance fund of each province (area or city) and the adjustments of other relevant social security benefits. While the average wages of workers have decreased, G=0; and while CPI is a minus, then X=0.

(2)The pension for supporting the relatives

The calculation formula: Z2=F×（G×a+X×b）±C

Note: a+b=1，a，C≥0. Z2 is the average adjustment amount of the pension for supporting the relatives; F is the average amount of the pension for supporting the relatives in the local province (district, or city) in the preceding year; G is the increase rate of the average wages of the workers in the local province (district, or city) in the preceding year; X is the CPI in the local province (district, or city) in the preceding year; a is the weight coefficient of the increase rate of the average wages of the workers; b is the weight coefficient of CPI; C is the comprehensive adjustment amount calculated according to the payment ability of work-related injury insurance fund of each province (area or city) and the adjustments of other relevant social security benefits. While the average wages of workers have decreased, G=0; and while CPI is a minus, then X=0.

(3)The fee for taking care of life shall be increased with the same rate of the average wages of workers in the local province (district, or city) in the preceding year, if the average wages decreases, then this fee shall not be adjusted.

(4)The hospital food allowance shall be decided by considering the local consumption structure of urban residents. In principle, the hospital food allowance shall not exceed the 40% of the daily average consumer amount of urban residents in the local province (district, or city) in the preceding year.

(5)Other benefits

The lump-sum subsidy for disability employment and the lump-sum subsidy for death shall be decided by the local province (district, or city) by considering the disability grade, the category of the hurt/disease, age and etc..

Following with the releasement of No.58, each province (district, or city) might adjust the work-related injury insurance benefits, each enterprise shall pay special attention to the local adjustments.