Foreign nationals legally employed in China must participate in the country's social insurance system. Those covered by an applicable social security agreement between China and another country may apply for an exemption from certain contributions under the agreement. 

Frequently asked questions

1. Who needs to participate?

Foreign nationals employed by companies and other organizations legally registered or established in China must participate in employee social insurance.

The requirement also applies to foreign nationals who have employment contracts with overseas employers and are assigned to work at branches or representative offices registered or established in China.

Employers and employees make social insurance contributions in accordance with applicable rules.

 

2. What does social insurance cover?

Employee social insurance covers five areas:

• Basic pension insurance
• Basic medical insurance
• Work-related injury insurance
• Unemployment insurance
• Maternity insurance

 

3. How is social insurance registration handled?

Employers must complete social insurance registration for foreign employees within 30 days of receiving their employment documents.

Registration can be handled through the One-Stop Service for Foreign Nationals Working in China. Under this service, the social insurance registration component is submitted online by the employer.

The employer can also apply at the Shanghai Social Insurance Center branch that serves the employee's place of social insurance registration.

 

4. Can foreign nationals qualify for contribution exemptions?

Simply having social insurance coverage in one's home country does not automatically exempt a foreign national from paying social insurance contributions in China.

China has signed bilateral social security agreements with 13 countries: Germany, the Republic of Korea, Denmark, Finland, Canada, Switzerland, the Netherlands, France, Spain, Luxembourg, Japan, Serbia, and Kyrgyzstan.

As of August 2026, agreements with 12 of these countries are in effect. The agreement with France has been signed but has not yet entered into force.

Foreign nationals covered by an agreement in force may apply for an exemption from certain social insurance contributions for the period specified in the agreement, provided they meet the relevant conditions.

The exemption does not necessarily cover all types of social insurance. Eligibility, the contributions covered, and the exemption period vary by country and by agreement.

In Shanghai, employers seeking an exemption must submit the required documents, such as a certificate of coverage, in person to the social insurance agency where the employee is registered.

 

5. Can foreign nationals in flexible employment participate in social insurance in Shanghai?

Yes, subject to eligibility requirements.

Foreign nationals aged 16 or above who have obtained permanent residence in China, have not reached the statutory retirement age, and are engaged in flexible employment in Shanghai may participate in employee basic pension and medical insurance.

 

6. When can foreign nationals receive a basic pension in Shanghai?

Foreign nationals who have participated in Shanghai's employee social insurance system may apply for a basic pension after reaching the State-prescribed age for claiming a basic pension, completing the minimum contribution period required by the State, and having Shanghai confirmed as the place where their pension benefits are to be claimed.

Pension benefits are calculated in accordance with Shanghai's basic pension insurance rules for enterprise employees.

The minimum contribution period for receiving a monthly basic pension is currently 15 years. From Jan 1, 2030, it will gradually increase from 15 to 20 years, by six months each year.

Those who reach the prescribed pension age without completing the minimum contribution period may either continue making contributions in accordance with applicable rules or terminate their basic pension insurance relationship.

 

7. What happens to the account when leaving China?

If a foreign national leaves China before reaching the prescribed retirement age, their individual social insurance account can be retained.

If they return to work in China in the future, their contribution years will continue to be counted cumulatively.

Alternatively, they may submit a written application to terminate their social insurance relationship and receive the balance in their individual account as a lump sum.

 

Sources: Ministry of Human Resources and Social Security, Shanghai Municipal Bureau of Human Resources and Social Security