Foreign Individual Social Security in China
China’s social security system covers a range of benefits, including pension, medical, unemployment, work-related injury, and maternity insurance. Foreign individuals who hold a China work permit (working VISA) for working in China are required to participate in the social security program.
The employer is liable to register the employee with the local social security bureau.
Monthly employer and employee social security contribution rates vary depending on the specific benefits and are governed by local city rules, but typically range from 30-40% of an employee’s monthly salary, split between the employer and employee. Foreign employees are entitled to the same social security benefits as Chinese citizens.
Upon leaving China, foreign individuals can apply to withdraw their social security contributions, subject to certain conditions and requirements.
For example, contribution rates and caps applicable to local Chinese in Shenzhen are as follows::
| China Social Security for employees | |||
| Category | Contribution* | Description | |
| Employer rates | Employee rates | ||
| Pension insurance | Around 16% | Around 8% | Pension for retirement |
| Unemployment insurance | 0.5%-1% | Around 0.5% | Insurance for individuals who involuntarily lost their job within a certain period |
| Medical insurance | 5%-12% | Around 2% | Insurance for illness/non-occupational injury |
| Work-related injury insurance** | 0.5%-2%*** | – | Insurance for occupational injury or occupational disease |
| Maternity insurance**** | 0.5%-1% | – | Insurance for the female employee’s medical expenses of childbirth and the maternity leave salary |
| Housing fund | 5%-12%***** | 5%-12% | Employee’s mandatory save to purchase housing |
| * The amount of contribution in each category is calculated by utilizing the employee’ | |||
The rates and ceilings are valid as of 30 June 2024 and are subject to changes in accordance with local regulations.
The contribution base is normally capped at a maximum of 300% of the Region/City Average Salary (Shenzhen: ¥8,807×3=¥26,421) of the preceding year and adjusted annually or on needed basis.
The employer is obligated to withhold the social contributions of employees from payroll, together with the employer’s contributions, and pay to the relevant local authorities every month.
China now has totalisation agreements in force with eleven countries. Foreign employees are eligible for social insurance exemptions if they come from countries with social insurance exemption agreements with China.
Totalisation agreements are international treaties that coordinate the social security systems between countries. They help avoid situations where foreign individuals end up paying social security contributions in multiple countries for the same work period.
| Country | Date of entry into force | Items of social security exempted |
| Germany | 4 April 2002 | Pension and Unemployment Insurance. Dispatched personnel, subsidiary staff, those with no employer, naval crew, diplomatic employees |
| Republic of Korea | 16 January 2013 | Pension and Unemployment Insurance. Dispatched personnel, short-term employees, self-employed persons, investors, employees on board ships and aircraft, diplomatic and consular office personnel, government or public institution employees |
| Denmark | 15 May 2014 | Pension. Dispatched personnel, employees on navigational ships and aircraft, diplomatic and consular office personnel, government or public institution employees, and Chinese nationals employed on Danish territory whose employment period is not more than six months or falls under a training and education program of no more than 18 months, expecting persons who have already participated in the country’s social insurance scheme |
| Canada | 1 January 2017 | Pension. Dispatched personnel, self-employed persons, employees on board ships and aircraft, government employees |
| Finland | 1 February 2017 | Pension and Unemployment Insurance. Dispatched personnel, self-employed persons, employees on navigational ships and aircraft, diplomatic or consular personnel, and civil servants. |
| Switzerland | 19 June 2017 | Pension and Unemployment Insurance. Dispatched personnel, employees on board ships and aircraft, diplomatic and consular personnel, government or public service agencies, accompanying family members |
| The Netherlands | 1 September 2017 | Pension and Unemployment Insurance. Dispatched personnel, employees on board ships and aircraft, civil servants, diplomatic and consular personnel, accompanying family members |
| Spain | 20 March 2018 | Pension and Unemployment Insurance. Dispatched personnel, employees on board ships and aircraft, civil servants, diplomatic and consular personnel |
| Luxembourg | 1 May 2019 | Pension. Dispatched personnel, self-employed persons, employees on navigational ships and aircraft, diplomatic or consular personnel, and civil servants |
| Japan | 1 September 2019 | Pension. Dispatched personnel, employees on board ships and aircraft, civil servants, diplomatic and consular personnel |
| Serbia | 1 February 2021 | Pension and Unemployment Insurance. Dispatched personnel, employees on board aircraft, diplomat and consular personnel, civil servants, and personnel of equivalent treatment |
https://si.12333.gov.cn/147509.jhtml
Note: The specific exemption criteria and procedures can differ across cities and social insurance programs. The local bureau may have specific requirements or procedures that need to be followed in order to qualify for the exemption.