Foreigners to join China's social insurance plan

Foreign employees will be included into China's social insurance system for the first time when a new social insurance law is put into place, according to information from the Ministry of Human Resources and Social Security.

Legal basis

The law is due to take effect starting July 1, 2011. Article 97 of the law explicitly defines expatriate employees should join China’s social insurance plan, providing a clear legal basis for expatriate's inclusion.

Xu Yanjun, deputy director of the social security center of the Ministry of Human Resources and Social Security, said the law applies to the expatriate employees in the organizations founded in China under the precondition of legal employment and those who are dispatched to China by overseas employers.

Experts said that, considering the prevailing practice in the world, it is inevitable to bring expatriate employees into the social insurance system given that an increasing number of foreigners are working in China.

Wang Guojun, insurance professor of China's University of International Business and Economics, said that it is both a duty and a right for expatriate employees to pay for social insurance in China.

Same treatment

Wang said the new social insurance law is a useful tool to protect the interests of both expatriate employees in China and Chinese employees abroad. The inclusion of expatriates lays a foundation for China to reach bilateral social insurance agreement with more countries, which helps to protect the rights of Chinese employed aboard.

Wang predicted that there would be an increase in the number of countries that will sign bilateral agreement with China, which could ensure insurants from signatory nations to pay levies without duplication.

Industrial insiders said a national mandatory standard will apply to foreign insurants. That means all foreign employees and their employer have the obligation of paying insurance levies according to law. Foreign insurants have the same responsibilities and rights with their Chinese counterparts to pay premiums and enjoy the benefits.

In addition, foreign employees who have already joined social insurance in their home country should submit extra survival document on regular basis. As for those who come from nations that have already signed bilateral or multilateral social insurance agreement with China, they should be handled based on relevant principles set in agreement.

Xu Yanjun said the Ministry of Human Resources and Social Security is drafting details of the law to define the duties and benefits for foreign employees.

No extra burden

Regarding concerns such as whether companies and individuals would face higher costs, Wang said whatever nationalities the employees are, companies are duty bound to buy social insurance for them. It is not unacceptable to pay more if the added contributions bring in due protection.

He also said that the developed countries manage foreigners?social insurance with strict standards and provide equal protection for them based on the principle of fairness.

Source: People's Daily Online

Full text of Social Insurance Law of the People's Republic of China in English language

Full text of Social Insurance Law of the People's Republic of China in Chinese language