China's social insurance and housing fund system, commonly known as "五险一金" (wǔ xiǎn yī jīn), is a crucial part of employment benefits. For expats, bilingual professionals, or anyone dealing with international HR matters, knowing the correct English terms is essential. Below is a detailed breakdown of each component with explanations.

Pension Insurance (养老保险 – Yǎnglǎo Bǎoxiǎn)

English Equivalent: Pension Insurance / Endowment Insurance

• Purpose: Provides retirement benefits to employees after reaching legal retirement age.
• Key Terms:
  • Individual Contribution: Employee-paid portion (typically 8% of salary).
  • Employer Contribution: Company-paid portion (usually 16-20% of salary).
  • Accumulated Pension Balance: The total amount accrued in an employee’s pension account.

Medical Insurance (医疗保险 – Yīliáo Bǎoxiǎn)

English Equivalent: Medical Insurance / Health Insurance

• Purpose: Covers hospitalization, outpatient treatments, and prescription costs.
• Key Terms:
  • Personal Account: A sub-account for daily medical expenses.
  • Reimbursement Threshold: The minimum amount before insurance coverage applies.
  • Out-of-Pocket Maximum: The highest amount an employee pays annually before full coverage.

Unemployment Insurance (失业保险 – Shīyè Bǎoxiǎn)

English Equivalent: Unemployment Insurance

• Purpose: Provides financial aid to employees who lose their jobs involuntarily.
• Key Terms:
  • Claim Duration: Varies based on contribution years (max 24 months).
  • Monthly Benefit: Usually 70-90% of local minimum wage.
  • Job Placement Services: Government-assisted job search support.

Work-Related Injury Insurance (工伤保险 – Gōngshāng Bǎoxiǎn)

English Equivalent: Work Injury Insurance / Employment Injury Insurance

• Purpose: Covers medical costs and disability benefits for workplace injuries.
• Key Terms:
  • Disability Rating: Determines compensation level (Grade 1-10 in China).
  • Lump-Sum Disability Payment: One-time compensation for severe injuries.
  • Rehabilitation Coverage: Includes post-injury therapy and vocational training.

Maternity Insurance (生育保险 – Shēngyù Bǎoxiǎn)

English Equivalent: Maternity Insurance

• Purpose: Supports employees during pregnancy, childbirth, and postnatal recovery.
• Key Terms:
  • Maternity Leave Pay: Typically 98-128 days of full salary coverage.
  • Prenatal Checkup Reimbursement: Covers pregnancy-related medical visits.
  • Spousal Benefits: Some cities allow fathers to claim paternity leave subsidies.

Housing Fund (住房公积金 – Zhùfáng Gōngjījīn)

English Equivalent: Housing Provident Fund / Housing Accumulation Fund

• Purpose: Helps employees save for home purchases, rentals, or renovations.
• Key Terms:
  • Contribution Rate: Usually 5-12% of salary (matched by employer).
  • Housing Loan: Low-interest mortgage available to contributors.
  • Withdrawal Conditions: Permitted for home buying, rent payments, or retirement.

Why These Terms Matter for Professionals

For HR teams handling international payroll, understanding these terms ensures compliance and clear communication. Expats working in China should verify their coverage, as some cities have unique policies. Freelancers and gig workers may need to self-contribute, making awareness even more critical.

The Chinese social security system is evolving, with recent reforms integrating maternity insurance into medical insurance in some regions. Keeping updated ensures employees maximize their benefits while avoiding legal pitfalls.

Navigating China’s social insurance and housing fund system in English requires precision—whether drafting contracts, explaining benefits, or processing claims. Misinterpretations can lead to financial discrepancies, so always verify terms with local authorities or legal experts.