Policy Interpretation of the Notice of Guangdong Provincial Department of Human Resources and Social Security, Guangdong Provincial Department of Finance, State Administration of Taxation, Guangdong Provincial Taxation Bureau on Printing and Distributing the Provincial Overall Implementation Plan of Guangdong Industrial Injury Insurance Fund

With the consent of the provincial party committee and the provincial government, the Provincial Department of Human Resources and Social Security, the Provincial Department of Finance, and the Provincial Taxation Bureau issued the Notice of the Guangdong Provincial Department of Human Resources and Social Security, the Guangdong Provincial Department of Finance, the State Administration of Taxation, and the Guangdong Provincial Taxation Bureau on Printing and Distributing the Provincial Plan for the Implementation of Guangdong Industrial Injury Insurance Fund (YRSG [2019] No. 20, hereinafter referred to as the Implementation Plan), It is stipulated that from July 1, 2019, our province will implement the provincial pooling of industrial injury insurance funds. The relevant provisions of the Implementation Plan are interpreted as follows:

1、 Development background

According to the Social Insurance Law of the People's Republic of China and the Regulations on Work related Injury Insurance, the work related injury insurance fund is gradually implemented as a whole at the provincial level. In 2017, the Ministry of Human Resources and Social Security and the Ministry of Finance issued the Guiding Opinions on Provincial Overall Planning of Industrial Injury Insurance Fund, which requires all provinces to achieve provincial overall planning of industrial injury insurance fund by the end of 2020. The provincial party committee and provincial government attach great importance to the promotion of the overall planning of the industrial injury insurance fund at the provincial level, which will be included in the key points of the provincial party committee's deepening reform and the provincial government's key tasks in 2019. To this end, the Provincial Department of Human Resources and Social Security took the lead in drafting the Provincial Overall Plan for the Implementation of Guangdong Industrial Injury Insurance Fund together with relevant departments, which was issued after being approved by the provincial party committee and the provincial people's government to promote the implementation of the provincial overall plan for the industrial injury insurance fund from July 1, 2019.

2、 Main objectives

Promote the unified fund management, unified insurance coverage and insured objects, unified rate policies and payment standards, unified treatment payment standards, unified industrial injury identification and labor capacity identification methods, unified handling procedures and information systems throughout the province, and promote the high-quality development of industrial injury insurance in our province.

3、 Document basis
（1） Regulations on Industrial Injury Insurance
（2） Regulations of Guangdong Province on Industrial Injury Insurance
（3） Guiding Opinions of the Ministry of Social Security and the Ministry of Finance on Provincial Overall Planning of Industrial Injury Insurance Fund (RSBF [2017] No. 60)
（4） Notice on Adjustment of Work related Injury Insurance Rate Policy (RSBF [2015] No. 71)
（5） Guiding Opinions on Further Strengthening Fund Management in the Work related Injury Insurance Rate Adjustment (RSBF [2015] No. 72)
（6） Guiding Opinions of the Ministry of Human Resources and Social Security on the Adjustment and Determination Mechanism of Industrial Injury Insurance Benefits (RSBF [2017] No. 58)

4、 Description of main contents

The Implementation Plan mainly stipulates the realization of "six unifications" of industrial injury insurance. The specific interpretation is as follows:
The work injury insurance fund shall be collected and managed at the provincial level.

From July 1, 2019, the industrial injury insurance fund will be subject to unified management of provincial income and branch, that is, unified management and use, unified accounting and settlement. First, the fund is collected and disbursed at the provincial level. The tax authorities at all levels directly transfer the industrial injury insurance premium into the special financial account of the provincial fund during the collection process. Each city shall propose a quarterly fund use plan. After being reviewed and approved according to the procedure, the required funds shall be transferred from the provincial fund financial special account to the provincial social security bureau expenditure account, and then transferred to the municipal social security bureau expenditure account. Second, the original accumulated balance fund of each city was handled as a whole. In accordance with the method of "incremental income and retention", all localities shall, before July 5, transfer 3 months' expenditure from the original accumulated balance fund to the expenditure account of the Municipal Social Security Bureau as working capital, and entrust the remaining accumulated balance fund to each city for deposit, with the right of use at the provincial level. When there is a gap in provincial funds, it shall be allocated from the original accumulated balance funds of each city in the same proportion. In order to make up for the gap of provincial overall planning fund during the period of periodic fee reduction, each city shall release 12% of the accumulated balance of the original fund to the province before the end of July 2019 as the starting fund of the provincial overall planning fund. Third, improve the provincial reserve system. The provincial reserve consists of the retained amount of the original provincial reserve, the provincial fund balance of the current year, and the original accumulated balance fund of each city (including the provincial level). It is mainly used to make up the fund gap of the current period, pay for serious accident work-related injury benefits, etc. The scale is controlled at the provincial average salary payment level of the previous year in nine months.
Unified insurance coverage and objects.

First, define the obligation of insurance payment. In June 2019, our province fully implemented the policy of civil servants participating in industrial injury insurance, and realized the integration of the industrial injury insurance system of government agencies and enterprises and public institutions. The Implementation Plan specifies that all kinds of employers in our province shall participate in industrial injury insurance for all employees according to laws and regulations. The second is to clarify the principle of assigning insurance collection tasks. The prefecture level listed and county (district) governments are the responsible subjects for the expanded collection and payment of industrial injury insurance and the timely and full payment of industrial injury insurance benefits. With reference to the provincial overall planning of endowment insurance, it is stipulated that the provincial department of human resources and social security, the financial department, the tax bureau, and the statistics bureau should formulate the plan for insurance coverage expansion and fund collection every year, and submit it to the provincial government for distribution to each city.

（3） Unify the rate policy and payment standard of work-related injury insurance.
First, the provincial industrial benchmark rate standard of industrial injury insurance premium was proposed. According to the principle of balance of revenue and expenditure of the whole province, the proposed provincial standard of benchmark rates for Class I to Class VIII industries is 0.2%, 0.4%, 0.6%, 0.8%, 0.9%, 1.0%, 1.2% and 1.4%, which is lower than the national standard as a whole. Considering that our province is currently implementing a phased fee reduction policy, and the current rate standards vary greatly among regions, in order to avoid the sharp fluctuations in fund collection and unit payment in the short term, the method of "setting standards first and implementing them in a timely manner" is adopted, and the current rate policies and standards are temporarily maintained throughout the province. After the implementation of the phased fee reduction policy expires, the unified rate standards across the province will be implemented. Second, reduce the proportion of construction projects participating in industrial injury insurance in the province. According to the income and expenditure of industrial injury insurance premiums for construction projects, the payment ratio of industrial injury insurance premiums for construction projects across the province will be reduced to 0.8 ‰ from July 1, 2019.

（4） Unify the payment standard of work-related injury insurance benefits.
The first is to unify the calculation and payment base of treatment. If the average wage of municipal employees is lower than that of provincial employees, the provincial standard shall be followed; If the salary is higher than the average salary of provincial employees, the municipal standard shall apply. The average wage of employees is based on the "average wage of on-the-job employees in urban non private units".  
The second is to unify relevant treatment standards. Specify the provincial industrial injury insurance inpatient board allowance and transportation, board and lodging expenses for medical treatment in other places. At the same time, the current inpatient board allowance shall be connected for the injured workers who have been hospitalized for treatment and rehabilitation before the reform.
Third, improve the long-term treatment adjustment method. In accordance with national regulations, the calculation formula for adjustment of disability allowance and pension for dependent relatives shall be clarified.

（5） Unify the methods for identification of work-related injuries and identification of labor capacity.
The human resources and social security departments of each city are responsible for organizing and implementing the identification of work-related injuries and identification of labor capacity in their respective regions. If there is a dispute over the jurisdiction of work-related injury identification cases that are cross prefecture level and listed, the Provincial Human Resources and Social Security Department shall provide guidance. The labor capacity appraisal fee of insured employees shall be paid by the industrial injury insurance fund, and the labor capacity appraisal fee paid in advance when applying for reexamination, reexamination and re appraisal shall be canceled.

（6） Unify the handling process and information system of industrial injury insurance.
First, unified and standardized business handling. In accordance with the unified business procedures of the province, all localities handle insurance payment, identification, treatment payment, work-related injury medical treatment and other businesses in accordance with the law. Sign the service agreement according to the uniform service agreement text of the province.
Second, the provincial centralized information system was launched. Since July 1, all localities have launched the provincial centralized social insurance integrated information system to handle industrial injury insurance business in batches according to the unified deployment of the province, so as to achieve business integration.

Third, improve the business linkage service capability. Strengthen information sharing and business collaboration with relevant departments. The medical expenses before the identification of work-related injury shall be paid by the medical insurance fund according to the regulations, and the work-related injury insurance fund and the medical insurance fund shall settle after the identification of work-related injury.
In addition, the Implementation Plan stipulates the strengthening of organizational leadership, the prevention of reform risks, the strengthening of supervision and management, and the clarification of the division of responsibilities of all relevant departments around the country.