Do Foreigners have to Pay "five insurances and one fund" in China?

With the gradual deepening of China's opening to the outside world, more and more foreigners have entered the domestic employment market, and the foreigner employment compliance system has been constantly practiced and improved. So, do foreigners have to pay "five insurances and one fund"?

Human resources and social security department: social security shall be paid.

According to the social insurance law, employees "shall" participate in endowment insurance, medical insurance, work-related injury insurance, unemployment insurance, maternity insurance and other social insurances, which shall be jointly paid by the employer and employees or separately paid by the employer. Therefore, whether to pay social security is not negotiated by the employer and the employee, but an obligation stipulated by law.

For foreign employees, Article 97 of the social insurance law stipulates that "foreigners who are employed in China shall participate in social insurance with reference to the provisions of this law." In 2011, the Ministry of human resources and social security also issued the Interim Measures for foreigners employed in China to participate in social insurance, which clearly stipulates that, "Foreigners legally recruited by enterprises, institutions, social organizations, private non enterprise units, foundations, law firms, accounting firms and other organizations (hereinafter referred to as employing units) that are legally registered or registered in China shall participate in the basic old-age insurance, basic medical insurance, work injury insurance, unemployment insurance and maternity insurance for employees according to law, and the employing units and themselves shall pay social insurance premiums in accordance with the provisions." "If an employing unit recruits foreigners, it shall handle social insurance registration for them within 30 days from the date of handling employment certificates."

Therefore, in principle, both the employing units and the foreign employees should pay various social insurances in accordance with the provisions.

In addition, because foreigners may have paid the corresponding social insurance in their own country, and many foreigners are not prepared to work and live in China for a long time, there may be a situation of double payment. If foreigners working in China are strictly required to pay social insurance in accordance with Chinese laws, it may cause unnecessary burden on employers and foreign employees. 

According to the reply of the Ministry of human resources and social security to the suggestions made by the deputies to the National People's Congress in 2018 (the reply of the Ministry of human resources and social security to the No. 6083 proposal of the first session of the 13th National People's Congress), China has, through bilateral agreements with Germany, Japan, the Republic of Korea, Canada and other countries, mutually exempted specific types of social insurance payment obligations for specific personnel.

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