Social Security Required for Foreigners Working in China
11-11-2011

The Ministry of Human Resources and Social Security of the People's Republic of China issued Interim Measures for Social Insurance System Coverage of Foreigners Working within the Territory of China ("Interim Measures") on September 6, 2011, which became effective on October 15, 2011. The Interim Measures provide clarification of Article 97 of Social Insurance Law of the People's Republic of China ("Social Insurance Law"), which became effective on July 1, 2011. 

First, the Interim Measures clarify that the social security laws apply to foreigners who are working within the territory of the People's Republic of China. Furthermore, they clarify that the term "foreigner" is defined as non-Chinese national who is lawfully working within the territory of the People's Republic of China and possesses an employment permit (e.g., an Employment Permit for Foreigners, a Foreign Expert Certificate, or a Resident Foreign Correspondent's Press Card), as well as a Permanent Residence Permit for Foreigners.

In addition, the Interim Measures explain the difference between the payment of social insurance contribution by foreigners who work for entities established within the territory of the P.R.C., such as various kinds of enterprises or public institutions, and foreigners who are employed by overseas employers, but are relocated to branches or representative offices in the P.R.C. However, the unified principle is that the social insurance contribution shall be jointly paid by the foreign employee himself/herself and the entity he/she works for within the territory of the People's Republic of China.    

Finally, the Interim Measures require that social security numbers be assigned to foreigners and that social security cards of the People's Republic of China be issued to foreigners covered in the system.

The implementation of the Interim Measures secures the legitimate rights and interests of foreigners working within the territory of the P.R.C. with respect to social insurance participation and benefits in accordance with the laws, as well as demonstrates China's strength of social insurance administration.