AP Features, June 11th, 2007
China's 140 million migrant rural workers, who have rebuilt the country's cities in recent years, will soon be covered by a pension scheme, state media reported Monday.
The workers _ equal to the population of Russia _ flooded China's major cities looking for work as the communist welfare system disintegrated under the pressure of economic reforms, leaving them with no access to public education, health care and other basic social services.
Xinhua News Agency quoted Zhang Xiaojian, vice minister of labor and social security, as saying a draft of the national old-age insurance system for migrant rural workers will be submitted to the State Council for approval.
According to the draft, rural workers with stable jobs will be included in the basic old-age insurance system that already exists for company employees in urban areas, Zhang told a conference on regional labor cooperation.
Those who do not have stable jobs can join a new old-age insurance scheme in which companies and individuals both make compulsory contributions. The employee's contribution is limited to 5 percent of his or her monthly salary.
The old-age scheme will be managed by provincial social security institutions.
A safety insurance program was launched in 2006 to protect migrant workers, and the government says nearly 27 million of the workers are now covered by work injury insurance, Xinhua said.
In March, in a speech to the National People's Congress, or legislature, Premier Wen Jiabao pledged to protect China's elderly and migrant workers, including with providing pension plans and basic medical and other social insurance.
