What Are Termination Benefits?

Welfare allocation is a unique form of housing distribution in the planned economy era after the founding of the People's Republic of China. In a market economy, houses are valuable. People need to buy and exchange money. In the planned economy, all surplus values of people are nationalized by the state. The state uses some of these surplus values to build houses in various enterprises and institutions, and then classifies them by grade, working age, age, number of generations living, number of people, and whether A series of conditions, such as housing, are allocated to some people. The rent actually paid by the resident is much lower than the construction and maintenance costs, and the distribution of the house is actually a welfare benefit.

Welfare housing

"Wait for the country to build a house, and organize the house to be divided, and ask the unit to give a house" is a typical feature of welfare housing. In the era of welfare housing,

If you are single, it is very difficult to get a separate house. Generally, you can only be assigned to a small room in a house. When you get married, you have the opportunity to get a separate house. At that time, the welfare housing was different according to the specific conditions of different units. Some units did not charge at all, and some units received a nominal amount of rent. Due to the extremely limited rent collection, the country still had to pay a lot of funds each year for subsidies. Expenditure on housing repairs and management, but very few people spend it.

In fact, welfare housing allocation is not complete. This housing allocation system has a certain planned economy, and there are some disadvantages:

First, it is difficult to break departmental interests, which is contrary to social equity. Some powerful departments will use their powers and occupy a lot of resources, such as land, funds for building houses, property rights of houses, etc. They have huge social wealth in their hands. These units have obtained huge monopoly profits through their strong positions. However, due to the weakness of their powers, they have less than one cup of gluttony. For a long time, it will easily cause contradictions.

Secondly, welfare sub-houses can easily breed corruption. Some people who are close to the core of power have obtained a good house through various extraordinary means, while some people who have been squeezed out and not mixed up can not be divided into houses or even houses. In order to divide the house, people are desperately giving gifts and pulling relationships.

In addition, in order to acquire land, the unit took the power to exchange with relevant departments and construction developers. Such rights and power transactions brought a lot of bad effects. In fact, it is a good choice to push modern commercial housing to market.

After the planned economy shifted to the market economy, China gradually eliminated welfare housing.

In 1998, the document "Notice on Further Deepening the Reform of the Urban Housing System and Accelerating Housing Construction" was issued, deciding to stop the physical distribution of housing from that year and establish a new housing system that monetizes housing distribution, commercializes housing supply, and socializes. ^[1]