Narrow bridges

The national pension system fills the gaps

As the labor market grows steadily, China is rolling out a new national pension system to shore up the labor market and provide people across the country with a fairer and safer working environment.

The new national pension system, which came into effect on January 1, is expected to help close possible financial gaps in the payment of pensions and reduce economic imbalances between certain provinces and regions.

According to the Ministry of Human Resources and Social Security, the central government introduced an adjustable pension payment system at the state level for the first time in July 2018, to ease the burden on provinces whose economy is weaker. It has allocated more than 600 billion yuan ($95 billion) across provinces from 2018 to last year.

“The system will resolve the structural imbalance of pension payments between different provinces and regions to ensure that people receive their pensions in a timely manner,” Qi Tao, deputy director of the ministry’s pension insurance department, said at a meeting. a teleconference on Tuesday.

“We have seen a disparity in economic development and population structure in different provinces and regions, which compounds the problem of pension payments. Some provinces have leftovers while others with more elderly suffer difficulties. to meet pension payments. This means putting in place a national pension system to reduce imbalances.”

At the end of last year, China’s pension system covered more than 1.03 billion people. About 230 million people had unemployment insurance and 280 million workers’ compensation insurance.

Figures given by the ministry showed that about 12.7 million jobs were created in urban areas last year, exceeding the target of 11 million. The average unemployment rate surveyed was 5.1%, down 0.5 percentage points from 2020.

Employment of key groups, including university graduates, migrant workers and demobilized military personnel, was also stable last year, while the number of migrant workers continued to rise, returning to pre-start levels. of the COVID-19 pandemic.