In year 2011, The Ministry of Human Resources and Social Security of the People’s Republic of China (MOHRSS of PRC) has already released the rules called The Social Insurance Law of the People’s Republic of China and Interim Measures for Social Insurance System Coverage of Foreigners Working within the Territory of China.
Here are the highlights of the rules:
1. Who should pay the social insurances?
1.1 Any Chinese company who hire foreign employees
1.2 Any foreign employee who hired by a Chinese company
1.3 Any foreign employee hired by an overseas company and sent to work in China (expatriates)
2. What kind of social insurances will be paid by a foreigner?
2.1 Pension insurance
2.2 Medical insurance
2.3 Unemployment insurance
3. What are the benefits when I pay the social insurances?
You will benefit the all same welfare applied to those Chinese employees if you are qualified.
4. What if I leave China prior to the retirement age, how should I do?
4.1 Situation 1: the individual account will be retained and renewed on a cumulative basis when you return to work in China.
4.2 Situation 2: upon the written application, the individual account could be unregistered and you are entitled to withdraw the lump-sum of the balancing amount.
4.3 Situation 3: the amount in the individual account could be inherited from the contributor because of death
5. If I have already paid the social insurances in my home country, should I pay them in China again?
Probably No. So far, China has signed double social insurance agreements with 9 countries (inclusive of Germany, Holland, Switzerland, Finland, Canada, Denmark, Korea, Spain and France, updated to June 2017). If you are from one of those countries, you could apply for the exemption.
To sum up, for better protect your rights and live in China, you are recommended to contribute the social insurances in China. And if you have any further questions regarding this topic, you are welcome to contact me on firstname.lastname@example.org or visit our website on www.victortruman.com.
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Victor & Truman，CPAs 宁波纬度会计师事务所（普通合伙）