Following the Provisions on Filing and Payment of Social Insurances issued on September 26th, last, and effective from November 1st, the PRC Ministry of Human Resources and Social Security has recently promulgated an implementing notice on the same issue. Most of the provisions of such Notice are related to providing guidelines to the local authorities on how handle their duties and accept payments: however, we believe that some clauses may be of of interest for employers.

One of such clause is related to the calculation of the fine for late payment of the welfare contribution: the Notice clearly state that employers shall be fined for an amount equal to the 0.05% of the amount due for each day of the delay until the date fixed by the local authority for the deadline for the late payment. If, after such deadline, the employer still refuse the payment, an additional fee equal to 300% of the mount due may be imposed.

Other provisions govern the way of payment of the fines (also by installments, if the employer is able to provide sufficient collateral for its debts), administrative and judicial actions against employers in breach, and the periodical check that the authorities should carry out to verify the correct implementation of laws and regulations by employers.

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