The Preliminary Study On The Socialization Of The Employees’ Sickness Income Rewarding System In China

The provisions on employees’ medical treatment period and sickness pay inChina’s labor law system are rarely concerned by social security scholars before long.However, most countries have established the social insurance for rewarding theemployees when they suffer sickness, together with the supplement of privateinsurance. In this paper, I attempt to introduce and compare the three incomerewarding modes: social security, private insurance and sickness pay in both theoryand practice perspectives, so as to probe into the reform path of socialization for theemployees’ sickness income rewarding system.In the beginning of this paper, I set up the concept of sickness income rewardingsystem and the three modes included in, which are social insurance mode, privateinsurance mode and sickness pay mode. Then I turn to introduce the history andcurrency of the provisions on employees’ medical treatment period and sickness payin China, raising the problems in these provisions by explaining the referred laws.After that, I demonstrate the rationality of the socialized sickness income rewardssystem implemented globally including social insurance and private insurance infields of economics and sociology. Finally, I explain the necessity and feasibility of the implementation of the socialization of employees’ sickness income rewardingsystem. The first step is to introduce the incentive policies for supporting the privateinsurance to supplement the current employees’ medical treatment period and sicknesspay system. The second step is to establish the sickness benefits institution in duecourse so as to substitute for the current employees’ medical treatment period andsickness pay system. The third step is to adjust the three modes into a wholemulti-pillar sickness income rewarding system.The innovations of this paper are as follow:1. The concept of Employees’Sickness Income Rewarding System is defined to introduce three rewarding modes:social insurance, private insurance and sickness pay.2. Comparing these threerewarding modes, I have tried to explain the necessity and feasibility of themulti-pillar sickness income rewarding system.3．On the basis of the revenue equal toexpenditure principle under Pay as You Go institution, I attempt to estimate thepremium rate range under some presumptions, so as to provide some academicreferences for the study of the socialization reform path of the sickness incomerewarding system.