China – New law requires all foreign employees to participate in the China Social Insurance Scheme |
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Background
The Ministry of Human Resources and Social Security has issued a draft of the ‘Provisional Measures for Foreigners to Participate in Chinese Social Insurance Scheme’ implementation rules.
Under the proposed rules all foreigners legally working in China, including those on secondment, will be required to participate in the Chinese Social Insurance Scheme, which includes basic pension and basic medical insurance. Both employers and employees will be required to contribute to the scheme. Notably, housing fund contributions have not been required.
Nationals of countries with a totalisation agreement with China may be exempt. At present, only Germany and South Korea have such agreements with China.
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China –New law requires all foreign employees to participate in the China Social Insurance Scheme (PDF)
