China to blacklist those who misuse social insurance

Chinese authorities plan to implement a blacklist system that punishes those who illegally use social security benefits, reported China News on Tuesday.

Under the new rule, individuals or companies involved in social insurance misconduct, such as refusing to pay insurance fees, forging certificate materials and trafficking personal data, could be prohibited from working at government positions and traveling by train or plane.

The Ministry of Human Resources and Social Security published the draft guideline on Oct 16 to solicit public opinion.

In China, the social insurance system is composed of several parts: pension, medical insurance, work-related injury insurance, unemployment insurance, maternity insurance and the housing providence fund.

Employers are required by law to cover social insurance for their employees, but in reality, many of them shy away from their responsibilities.

More than 70 percent of companies failed to pay mandated social insurance premiums for their employees, and 32 percent of them only paid the minimum, according to a report published this year by 51shebao, an independent social insurance agency.

The new rule is the latest attempt by the Chinese government to blacklist people for dishonest behavior. In March, authorities published a regulation, stating that individuals who spread rumors, engage in fraudulent activities or misbehave on planes, could be banned from traveling by airplanes for a year.

The country's social credit blacklist has punished 12 million people as of Oct 26, according to the National Development and Reform Commission.