The administration of labor insurance premiums must comply with the provisions of Chapter V of the Regulations of the People's Republic of China on Labor Insurance, which are as follows:
Article 21 The administration of labor insurance premiums shall be as follows:
A. The General Labor Insurance Fund shall be used by the All-China Federation of Trade Unions for the purpose of organizing the collective labor insurance business.
B. The Labor Insurance Fund shall be used by the basic committees of the trade unions to pay pensions, subsidies and relief expenses and subsidies for the collective labor insurance business of the enterprises. The fund is settled once a month and the balance is transferred to the account of the provincial or municipal trade union organization or the National Committee of Industrial Trade Unions as the labor insurance transfer fund (hereinafter referred to as the transfer fund).
C. The transfer fund shall be used by the provincial or municipal trade union organizations or the national committees of industrial trade unions to subsidize the basic committees of their respective trade unions in the event of insufficient expenditure from the labor insurance fund, or for the purpose of organizing collective labor insurance undertakings. The national committees of industrial trade unions may authorize their local agencies to control the use of the transfer funds. The All-China Federation of Trade Unions has the right to co-ordinate the use of the transfer funds of the provincial and municipal trade union organizations and the national committees of the industrial trade unions, and to use them for the purpose of organizing collective labor insurance undertakings. If the transfer funds of the provincial or municipal trade union organizations or the national committees of industrial trade unions are insufficient to meet their expenses, they may apply to the All-China Federation of Trade Unions for the allocation of transfer funds to subsidize them.
Article 22 The labor insurance fund shall not be used for any purpose other than the labor insurance business.
Article 23 The accounting department of each enterprise shall set up an independent accountant of the labor insurance fund, who shall be responsible for handling the income and expenditure of the labor insurance fund. The accounting system of the labor insurance fund shall be formulated by the Ministry of Labor of the Central People's Government in conjunction with the All-China Federation of Trade Unions.
Article 24 The income and expenditure of the labor insurance transfer fund shall be handled by the financial departments of the trade union organizations at all levels in accordance with the regulations of the All-China Federation of Trade Unions.