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Employers in Guangzhou, capital of South China's Guangdong Province, will be obliged to provide childbirth insurance for their entire workforce with effect from Sunday, the local labor and social security department said yesterday.

"The new childbirth insurance system has been expanded to include migrant workers for the first time, and the insurance rate has been increased from 7 percent of a worker's monthly income to 8.5 percent," said Cui Renquan, director of the Guangzhou labor and social security bureau.

"The new system takes effect on July 1," he said.

Women who are already pregnant will not benefit from the new ruling, as employers must purchase the insurance at least one year ahead of the delivery date, Cui said.

But this is a mandatory system with which all employers must comply, Zheng Yuhua, the bureau's deputy director, said, adding that the new system aims to provide equal rights for all workers, local and migrant, men and women.

Guangzhou first introduced childbirth insurance in 1995, but at that time it applied only to employees who were local residents. At the end of 2006, some 982,500 people had insurance cover.

Because of the increase in the number of insurance policyholders under the new rules, the bureau has also increased the insurance rate by 1.5 percentage point to ensure sufficient funding.

However, Cui said the rate was still below the national maximum rate, which is 10 percent of a worker's monthly income.

Under the new system, a pregnant woman must give birth in a bureau-designated hospital.

Each mom-to-be will receive between 2,800 yuan ($370) to 5,400 yuan for medical treatment depending on the method of delivery - natural childbirth or Caesarean section - and the hospital chosen.

They will also receive a childbirth allowance and nutritional assistance.

Male workers will also benefit: They will be given 10 days paid vacation on the birth of their child.