Minimum Standard of Living

It refers to the social security system that the state grants a certain amount of cash aid to the population whose per capita income is lower than the minimum living standard announced by the local government to guarantee the basic life of the family members. The subsistence allowance line, also known as the “poverty line”. In 1993, Shanghai took the lead in establishing the subsistence allowance system, which was not rolled out nationwide until 1996. In September 1999, the “Regulations on the Subsistence Allowances for Urban Residents” was reviewed and approved by the State Council and implemented nationwide on October 1 of the same year, signifying that the subsistence allowance system for urban residents was fully rolled out nationwide, and marking the development of social assistance in China. The “Regulations” stipulate that the following three categories of personnel can apply for the subsistence allowances for urban residents: (1) Residents without a source of living, incapable of working, unable to determine a supporter or dependent; (2) Residents failing to re-employ while receiving unemployment benefits or when unemployment benefits have expired, and whose per capita family income is below the subsistence allowance standard; (3) Residents whose per capita family income is still below the subsistence allowance standard after receiving salaries or minimum wages (for in-service workers), basic living expenses (for laid-off workers) and retirement pension(for retirees). The subsistence allowance system is a kind of relief for the poor, which only provides temporary subsidies to cover the basic living cost. If their income increases and exceeds the prescribed relief standard, the population or family who originally received the subsistence allowances will be disqualified.

Whether the standard is reasonable. If the standard is set too high, it will not only increase the central and local financial burden, but also will foster people's dependence, thus generating negative effects; if the standard is set too low, it will be incapable of guaranteeing the basic life of poor residents, which is contrary to the original intention. The determination of the subsistence allowance standard should take into account several factors, such as the per capita living standard of the community, the expenses necessary to maintain the minimum living standard, the level of economic development and financial status, and the price index during the period. After the 16th CPC National Congress proposed in 2002 that “localities where necessary conditions are satisfied shall explore the establishment of rural subsistence allowance system”, especially after the 5th Plenary Session of the 16th CPC Central Committee proposed the construction of the new socialist countryside, the rural subsistence allowance system was rapidly rolled out throughout the country. The No. 1 document of the CPC Central Committee in 2007 (that is, “Several Opinions of the CPC Central Committee and the State Council on Actively Developing Modern Agriculture and Solidly Promoting the Construction of the New Socialist Countryside”) clearly proposed to establish the rural subsistence allowance system nationwide. To consolidate and improve the rural subsistence allowance system, it is necessary to increase the subsidies of the central finance and provincial finance, and improve the coverage and level. The subsistence allowance system is a major measure to build the new socialist countryside and a well-off society in an all-round way. It is a livelihood project that affects the people’s clothing and food, a popular project to consolidate the Party’s ruling foundation, a moral and political project to share the fruits of reform and development, and a solidary project to maintain social harmony and stability. To further strengthen and improve the subsistence allowance work, we must firmly follow the basic principles of full coverage, fairness and justice, dynamic management, and overall consideration, and further improve the subsistence allowance work mechanism featured by government guidance, civil affairs departments’ leadership, departmental cooperation, and social participation, and constantly improve the scientificity and execution of the subsistence allowance system.