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Q&A Regarding Agreement on Mutual Exemption of Social Security between China and Switzerland

Answer
To effectively solve the problem of double payment of social insurance premiums for personnel working in each other’s country, China and Switzerland formally signed the Social Security Agreement between the People’s Republic of China and the Swiss Federal Government on September 30, 2015 (hereinafter referred to as Agreement). The Agreement officially entered into force on June 19, 2017. This article aims to solve frequently asked questions in the form of Q&A for clients’ reference.

Q: Which type of insurance is mutually exempted according to the Agreement?
A: The mutually exempted insurances are staff basic pension insurance, urban and rural residents basic pension insurance and unemployment insurance in China and the pension and survivor insurance, disability insurance in Switzerland. According to Swiss law, employees who apply or exempt Swiss pension and survivor insurance and disability insurance will automatically apply or exempt Swiss unemployment insurance.

Q:
Who can be exempted from paying relevant social insurance premiums in Switzerland?
A:
1. Dispatch personnel, which refer to persons employed by an employer with a business premises within the Chinese territory and are dispatched by the employer to work in the Switzerland according to the employment relationship.
2. Employees on seafaring ships, which refer to persons employed on seafaring ships flying the Chinese flag and persons usually residing in Chinese territory and sent by Chinese employers to work on seafaring ships flying the Swiss flag.
3. Employees on the aircraft, which refer to persons employed by a headquarter in China and the management personnel or crew members.
4. Personnel of diplomatic and consular institutions.
5. Persons employed by the government or public service agencies, which refer to a person who is employed by the Chinese central or local government or other public service agencies and is sent to work for him by the employer in the Swiss territory based on his employment relationship.
6. Members of the family unit, the accompanying spouse and children of the above-mentioned category 1-5 persons are also exempt from paying relevant social insurance premiums in the Switzerland, unless their spouse and children are employed or self-employed on the Swiss territory, and should participate urban and rural residents basic pension insurance in China.
7. Exception. The competent authorities or agencies in China and Switzerland may agree to make exceptions to Articles 3 to 7 of the Agreement for specific persons or groups of people, provided that such persons or such persons are subject to the laws and regulations of either China or Switzerland.

Q:
Who can be exempted from paying relevant social insurance premiums in China?
A:
The conditions applicable to Switzerland who are exempted from paying social insurance premiums in China are the same as those applicable of Chinese working in Switzerland.

Q:
How long could the exemption period last for dispatched personnel from paying social insurance premiums?
A:
The maximum period for dispatched personnel to be exempted from payment of social insurance for the first time is 6 years. If the dispatch period exceeds 6 years, it may be extended if agreed by the competent authorities or agencies in China and Switzerland.

Q:
What materials need to be provided to apply for exemption from paying relevant social insurance premiums?
A:
Applicants need to submit the Certificate to apply for exemption from paying corresponding social insurance premiums.

Q:
Can Swiss apply for exemption from paying relevant social insurance premiums in China if they cannot provide Certificate?
A:
No. For Swiss who cannot submit the Certificate in China, the local social insurance agencies should urge them to participate in China’s social insurance according to relevant regulations.

Q:
Apart from the staff basic pension insurance, urban and rural residents basic pension insurance and unemployment insurance, can other social insurances be exempted from payment for Swiss working in China?
A:
No. In addition to the staff basic pension insurance, urban and rural residents basic pension insurance and unemployment insurance as stipulated in the Agreement, Swiss in China should participate in other types of social insurance in China in accordance with relevant regulations.

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