Page 6 - The South China Business Journal
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Social Security in China:
Exemptions
for Some Foreigners
Social insurance exemption for foreigners can be a
valuable asset for employers and foreign employees to
save on unnecessary costs. However, many companies
hiring eligible employees are not aware of the benefits
available to them, while those who do are often unsure
as to how to go about applying.
China’s social security system consists of five
different types of insurance, plus one mandatory
housing fund. The five “insurances” are pension,
medical, work-related injury, unemployment,
and maternity insurances, while housing fund
contributions are included because the costs come
from both the employer and the employee.
Regional authorities manage the social
insurance system – not all regional governments
have enacted implementation rules for China’s
international social security agreements. However,
expatriates from Germany, Korea, Denmark,
Canada, Finland, Switzerland, the Netherlands,
and Spain are eligible for exceptions across China,
and soon those from France, Serbia, and Japan will
be as well. In this article, we look at who is eligible for
exemption, and how to apply.
Social insurance premiums in China
The Ministry of Human Resources and Social Security requires foreign
employees working in China to participate in its social insurance scheme, as detailed in
the Interim Measures for the Participation in Social Insurance of Foreigners Employed in
China, 2011.
According to Chinese labor law, any foreigner employed by a legally registered entity in China,
or any foreigner dispatched to a registered branch or representative office of a foreign company,
must participate in basic pension insurance for employees, basic medical insurance for employees,
work injury insurance, unemployment insurance and maternity insurance.
4 AmCham South China
Social Security in China:
Exemptions
for Some Foreigners
Social insurance exemption for foreigners can be a
valuable asset for employers and foreign employees to
save on unnecessary costs. However, many companies
hiring eligible employees are not aware of the benefits
available to them, while those who do are often unsure
as to how to go about applying.
China’s social security system consists of five
different types of insurance, plus one mandatory
housing fund. The five “insurances” are pension,
medical, work-related injury, unemployment,
and maternity insurances, while housing fund
contributions are included because the costs come
from both the employer and the employee.
Regional authorities manage the social
insurance system – not all regional governments
have enacted implementation rules for China’s
international social security agreements. However,
expatriates from Germany, Korea, Denmark,
Canada, Finland, Switzerland, the Netherlands,
and Spain are eligible for exceptions across China,
and soon those from France, Serbia, and Japan will
be as well. In this article, we look at who is eligible for
exemption, and how to apply.
Social insurance premiums in China
The Ministry of Human Resources and Social Security requires foreign
employees working in China to participate in its social insurance scheme, as detailed in
the Interim Measures for the Participation in Social Insurance of Foreigners Employed in
China, 2011.
According to Chinese labor law, any foreigner employed by a legally registered entity in China,
or any foreigner dispatched to a registered branch or representative office of a foreign company,
must participate in basic pension insurance for employees, basic medical insurance for employees,
work injury insurance, unemployment insurance and maternity insurance.
4 AmCham South China
