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2.1. An overview of the elderly care policies in the Chinese mainland, Hong Kong and Macau

Hong Kong SAR Macao SAR Guangdong Province

(1) Mandatory Provident Fund (1) The Non-Mandatory (1) Basic Elderly Insurance System
With contributions by both Central Provident Fund The Basic Elderly Pension
the employer and the The Non-Mandatory Central System consists of the Pension
employee, to be redeemed Provident Fund of Macau Administrator and individual
at the time of retirement (65 provides for the contributions pension accounts. It requires
years old), or under other by the government and the contribution of a portion
special circumstances. individuals, so that residents of the total salary by the
can accumulate savings for their participating units and the
retirement. individuals. The system assists
residents in accumulating
retirement savings.

Retirement (2) Individual Pension System
provident The Individual Pension
fund System carries out an
individual account system,
whereby the participant
makes all contributions for
comprehensive accumulation.
In the Chinese mainland, a
basic three-pillar insurance
infrastructure has been set
up with a basis on pension
insurance as supplemented
by enterprises making annuity
(occupational) contributions,
along with individual savings
pension and commercial
pension insurances.

(1) Comprehensive Social (1) Social Security Fund (1) Sickness and disability
Security Assistance The Social Security Fund of Macau subsidies system
Provides economic assistance provides, amongst others, If the participant lost all the
to individuals and families in welfare assistance such as old- abilities to work due to sickness
Social need, including seniors. age pension, disability pension, or non-work-related causes
security and unemployment allowance. before the statutory retirement
and (2) Social Security allowances age, participants may apply for
subsidies Including Old Age Living (2) Old-age Pension Sickness and Disability Subsidies,
Allowance, Normal Disability This scheme provides pension to be paid out monthly.
Allowance, and Higher for those who have made at
Disability Allowance least 60 months of contribution (2) Old age subsidies system
in the social security system and Subsidies are given to persons
met the residency requirement. 80 years or above who
experience financial difficulties.

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