The Shanghai’s Government issued new rules for the payment of basic medical insurance by employees. Such rules set provide that the taxable amount shall be equal to the monthly average salary of the employee for the previous year. In case such amount exceeds 300% of the monthly average wage of employees in Shanghai, the taxable amount shall be equal to such 300%, while in case the taxable amount is lower than 60% of the monthly average wage of employees in Shanghai, 60% of the previous year’s monthly average wage of employees in Shanghai shall be considered. In addition, the rules set that an employee should pay 2% based on his/her basis of contribution as the basic medical insurance premium, and that retired persons shall not pay basic medical insurance premiums.

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