Legal basis: Regulations of People's Republic of China (PRC) Municipality on Basic Medical Insurance for Urban Workers.
Twelfth basic medical insurance premiums are levied on a monthly basis, and employers and employees shall pay the basic medical insurance premiums to the tax collection authorities within the prescribed time limit. The part that individual employees should pay shall be withheld and remitted by the employer from their wages. The basic medical insurance premium shall not be reduced.
Thirteenth pay the total wages of basic medical insurance premiums, according to the relevant provisions of the state. The basic medical insurance premium paid by the employer shall be charged according to the relevant financial regulations of the state. The basic medical insurance premium is not included in the personal current wage income, and is exempt from personal income tax. The employing unit shall not lower the wage standard of employees on the grounds that they pay the basic medical insurance premium.
Fourteenth basic medical insurance payment to implement the annual inspection system. The administrative department for industry and commerce shall not handle the annual inspection procedures for industry and commerce for the employing units that have not gone through the annual inspection procedures for paying the basic medical insurance to the tax authorities. When the employer goes through the formalities for cancellation of the business license, the administrative department for industry and commerce shall first review the certificate of termination of the basic medical insurance relationship issued by the social insurance agency.