Be Prepared: Work Related Injury and Death in China

Be Prepared: Work Related Injury and Death in China

For companies around the world, work related injury and death is inevitable. China is no different, but of course China’s laws and regulations governing the phenomena are. There is a complex process in China for determining and certifying an injury or death as “work related.” Foreign Companies should be aware of these requirements and procedures.

Firstly, Chinese regulations as to work related injury insurance apply to all employers and work to ensure employers pay toward work related injury insurance. According to regulations, injuries, illnesses, or death within 48 hours from performing work duties are all subject to review for potential work related injury insurance benefits. After a incident is discovered, the company or legal counsel must work with relevant government agencies to make an official determination that the matter is work related and justifies compensation.

Of course, medical treatments and other form of remedial care are covered by the insurance. After an injury, the capacity of the employee to continue to work and earn income will be evaluated cooperatively between the local government, the employer, and the health department. Disability is graded on a scale of 1 to 10 with a set figure of compensation in accordance with the level of disability. The highest level of disability will earn 27 months of the employee’s monthly wage in insurance compensation.

Following the evaluation, required medical appliances and aids will be further subsidized by the work related injury insurance fund at a percentage of the workers monthly wage. Where employees must take temporary leave, they are required to receive full wages for a leave period of up to 12 months, and the leave is granted in addition to other legally granted leave, such as maternity leave or marriage leave.

For employees that die on the job, or within 48 hours after work the required funeral subsidy is six months payment of the average monthly salary of the employee over the previous 12 months. Additional lump sum work related death compensation is set at 20 times the national average disposable income per capita in the preceding year. This figure is set by the relevant government agencies, so the calculation is not as complicated for the company is it may seem.

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