China will launch a pilot pension insurance program for unemployed urban residents starting July 1. All unemployed urban residents over the age of 16, excluding students and people covered by the pension program for employed ones, are eligible for the pilot program, the State Council said in a statement.

According to the statement, the pension program's fund is made up of personal contributions and governmental subsidies. There are 10 categories for personal contributions annually, but an unemployed urban resident can choose to pay the minimum annual sum of 100 yuan ($15.43) or the maximum 1,000 yuan ($154) per year into the pension program before reaching 60 when he or she starts to receive basic monthly pension payment of 55 yuan ($8.48) in addition to payment from his or her personal contributions.