To all representative office and hr agencies:

Informed by Shanghai Labor and social security Bureau, we now inform you as following：

1、《Execution of working damage insurance of Shanghai》will be effective since July 1, 2004。

2、The base of the working damage insurance will be 0.5% during the first year, and employees do not pay it individually.

3、The base of the working damage insurance is fixed as the base of the pension or the town social welfare.

4、The social welfare center will calculate the working damage insurance on the base of last month’s total pension base and collect next month. Our company will collect the working damage insurance of June in July’s payment notice and adjust your fee since July.

Here are some explanations：

1、The comprehensive insurance should be paid monthly instead of quarterly since July 2004.

2、The number of the people of comprehensive insurance will be calculated up to 25 every month(including the people log-on).

The detail list will be send together with the payment notice to your company. And if you have any questions, please connect our customer service.

For further information please visit our website: www.hr-channel.com
Best Regards

SIECCO FOREIGN SERVICE CENTER
SHANGHAI INTERNATIONAL ENTERPRISES HR CONSULTING CO., LTD.
2004-7-6