Migrant workers in this southern city can now get the same
retirement pension as their resident counterparts, due to a recent
revision in endowment insurance policy.
The local government has waived a regulation that made it
mandatory for workers without a hukou, or registered permanent
residency, in Shenzhen to pay their endowment insurance premium for
five consecutive years before their statutory retirement age to
enjoy the benefit.
Since December 29, they can claim the retirement pension as long
as they have paid the insurance premium for 15 cumulative years the
same criterion that locals have to fulfill.
"It's a symbol of social progress. The millions of hard-working
migrant laborers, who are actually the major contributors to the
economic miracle of the city, should get the same treatment as
their local counterparts," Shenzhen Academy of Social Sciences
professor Yang Lixun said.
With nearly five-sixths of its 8.3 million population being
migrant laborers, Shenzhen leads the country in this field, he
said. "The move could help increase the cohesive force of the city
and create a more harmonious society. It could increase the city's
attraction and improve its investment environment, too."
According to official data, about 4.3 million people were part
of the city's endowment insurance scheme until December 31, 2006.
Though a whopping 3.2 million of them are non-permanent residents,
only 200 get retirement pension of an average 1,100 yuan (US$141) a
month.
"We hope more migrant laborers will continue working in
Shenzhen, and live a happy life after retirement," said Yuan
Jianyong, director of the city's management office on social
security fund.
Since it is not possible to transfer the personal endowment
insurance account within the country, most migrant laborers
withdraw their savings from the scheme before leaving the city.
Yuan said the social security fund could now have a balance even
after the revisions. "We have adjusted the retirement pension
calculation methods to make it more closely linked to the duration
and base of payment. Migrant laborers, who usually have a low
payment base and short payment period, will get a smaller pension
compared to some local residents," Yuan said.
According to existing endowment insurance regulations, a
policyholder has to pay 8 percent of his or her salary while the
employer pays another 10 percent to the social security fund.
Most migrant laborers polled by China Daily said that
though they were happy to get a fairer status, the retirement
pension was not the vital most factor to hold them back in the
city.
Yang Lingyan, 25, who has worked for a listed manufacturing
company for three years, said factors such as housing and living
costs were more important.
(China Daily January 24, 2007)