Have you ever wondered whether expats are required to pay social insurance contributions in China? Find out the answer in this article.

 

According to Chinese law, foreign workers hired by Chinese employers, or expats who are sent to work in their foreign employers' branches or representative offices in China, are required to join the social insurance program that covers basic endowment insurance, basic medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance.

The social insurance premiums must be paid by both the employer and the employee.

Employers must register their foreign employees with the social insurance scheme within 30 days of receiving their work permits.

 

To be eligible for joining the social insurance system, expats must not be over the retirement age of 60 for men and 55 for women.

The documents required for expats to join the social insurance system are: 

 - Employment contract.

 - Passport.

 - One of the following permits:

  (1) Work permit 

  (2) Residence permit (type B)

  (3) Foreigner's permanent resident ID card

The employer's HR staff can go to the local social security sub-center to handle the procedures from the 5th to the 26th of each month (excluding public holidays).

 

 

So, can expats withdraw the money accumulated in their social insurance accounts? 

The answer is yes. 

If an expat plans to leave China before reaching retirement age – 60 for men and 55 for women - they can choose to keep their personal social insurance account. If they return to work in China in the future, the years of contributions will be cumulatively calculated. 

An expat can also choose to terminate their social insurance account upon written request and withdraw the balance in a lump sum. 

Employees who have terminated their pension insurance can bring their documents to the nearest district medical insurance center to settle their personal medical account funds.

In the event of an expat's death, the balance in their individual pension insurance account can be inherited.

 

There is one more thing to note: 

China has signed mutual social security exemption agreements with 12 countries - Japan, Luxembourg, Spain, the Netherlands, Switzerland, South Korea, Germany, Finland, Canada, France, Denmark, and Serbia. If an expat holds the nationality of one of these countries, they can be exempt from paying insurance premiums for a certain period of time, as stipulated in the agreement.

 

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