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Extending social security coverage to the rural sector in C hina
Author(s) -
Chen Tianhong,
Turner John A.
Publication year - 2014
Publication title -
international social security review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.349
H-Index - 28
eISSN - 1468-246X
pISSN - 0020-871X
DOI - 10.1111/issr.12030
Subject(s) - subsidy , incentive , government (linguistics) , social security , business , labour economics , pension , economic growth , public economics , economics , finance , market economy , linguistics , philosophy
In late 2009 C hina launched an innovative, voluntary programme that by 2011 had extended pension coverage to 326.4 million people in the rural sector, including contributors and beneficiaries. It requires one contribution per year and provides a flat‐rate benefit and a contributions‐related benefit through a contributory individual account, with a government guarantee that the benefit will continue for life. The programme encourages participation of persons who do not pay income taxes, and thus have no tax incentive to participate, by providing substantial government subsidies. As a further incentive, old‐age benefits are provided to older parents when all their adult children participate in the contributory programme.