By Staff Reporters

As an increasing number of foreigners seek employment opportunities in China, questions often arise about their obligations to pay social insurance in the country. Despite some individuals having paid social security in their home countries, the Ministry of Human Resources and Social Security (MOHRSS) unequivocally asserts that social security contributions are mandatory for foreign employees in China. In this article, we will explore the legal basis for this requirement and address concerns related to double payment and the treatment of contributions made by foreigners.

Legal Obligations for Social Insurance

According to the Social Insurance Law of China, employees, including foreign employees, are obligated to participate in various social insurance schemes, including pension, medical care, work-related injury, unemployment and maternity insurance. The responsibility for paying these insurance premiums falls on both the employer and the employee, as specified by law. As such, the payment of social insurance is not subject to negotiation between employers and employees, but is rather a legal obligation that must be adhered to.

Article 97 of the Social Insurance Law explicitly states that foreign employees working in China must participate in the country's social insurance schemes. Moreover, the Interim Measures for Foreigners Employed in China to Participate in Social Insurance, issued by MOHRSS in 2011, clarifies that all employers legally registered 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 in accordance with the relevant regulations.

Addressing Potential Double Payment

Concerns may also arise among foreign employees about the possibility of double payment, considering that some individuals have already made social insurance contributions in their home countries. Recognizing this, China has taken measures to address this issue through bilateral agreements with certain countries.

According to the response of the MOHRSS to the National People's Congress in 2018, China has established bilateral agreements with countries such as Germany, Japan, South Korea and Canada to waive specific types of social insurance payment obligations for certain personnel, which 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, there are provisions outlined in the "Interim Measures for Foreigners Employed in China to Participate in Social Insurance."

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