Social Insurance Tips for Foreigners Working in China or Leaving

As the number of foreigners seeking employment opportunities in China continues to rise, questions often arise regarding their obligations to pay social insurance in the country. The Ministry of Human Resources and Social Security (MOHRSS) unequivocally asserts that social security contributions are mandatory for foreign employees in China, even if they have paid social security in their home countries. In this article, we will explore the legal basis for this requirement, address concerns about double payment, and discuss options for foreigners leaving China.

Legal Obligations for Social Insurance

Under the Social Insurance Law of China, all employees, including foreign employees, are obligated to participate in various social insurance schemes such as pension, medical care, work-related injury, unemployment, and maternity insurance. Both employers and employees are responsible for paying these insurance premiums, as specified by law. The payment of social insurance is not subject to negotiation but rather a legal obligation.

Article 97 of the Social Insurance Law explicitly states that foreign employees working in China must participate in the country's social insurance schemes. The Interim Measures for Foreigners Employed in China to Participate in Social Insurance, issued by MOHRSS in 2011, further clarifies that all legally registered employers in China must provide social insurance coverage to their foreign employees. This includes basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance. Both the employer and the foreign employee are required to contribute to the social insurance premiums according to relevant regulations.

Addressing Potential Double Payment

Foreign employees may have concerns about double payment, especially if they have already made social insurance contributions in their home countries. To address this issue, China has established bilateral agreements with certain countries, such as Germany, Japan, South Korea, and Canada.

According to the response of MOHRSS to the National People's Congress in 2018, these bilateral agreements waive specific types of social insurance payment obligations for personnel from the respective countries. This means that citizens of these countries working in China may be exempt from paying certain social insurance premiums if they meet the conditions specified in the bilateral agreements.

Options for Foreigners Leaving China

For foreigners who have paid social insurance in China but have left the country without meeting the pension requirements, provisions outlined in the "Interim Measures for Foreigners Employed in China to Participate in Social Insurance" offer options.

Cumulative Payment Period: Foreigners who have contributed to the social insurance system can keep their social insurance accounts. If they return to China for employment in the future, they can continue accumulating contributions and benefits based on their previous payment period.

Lump-Sum Payment: Alternatively, foreign employees can apply in writing to terminate their social insurance relationship. In this case, they have the option to receive a lump-sum payout equivalent to the amount stored in their personal social insurance accounts.

Editor: CH

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