Job Discussion Forums

[Oztobeyond]

Hi all,

I've heard from multiple sources that, by law, employers of foreigners in China are obliged to pay 8% of their gross wages into a social security fund*. Upon leaving China, as a foreigner who doesn't intend to return, you are entitled to get this money back, as per the link below:

http://www.beijingrelocation.com/blog/before-leaving-beijing-get-your-chinese-pension-back/

Does anyone know more about this? My workplace says they haven't been paying that because they have 'private insurance'. Does anyone know if this is possible, and or legal?

Thanks,


*I've heard with exception of Shanghai, who have their own scheme? Not sure on this though.

[scot47]

What does this Social Insurance cover ? If it is for health care it is unlikely that a refund will be due. If it is for retirement benefits, there migft be provision.

[peripatetic_soul]

Dear Oz,
This is certainly different from when I was in China in the 80's and 90s! I read the info in the link you provided. Then, I googled Social Insurance in China. You may find answers to your questions under these headings: "Who Must Pay?" and "How Shall I Pay?"at the following link:

http://english.gz.gov.cn/gzgoven/s10375/Resi_list.shtml

In the section entitled, "Who Must Pay?", both the employee and employer are required to pay into the Social Insurance.

Hope this helps! I'll be sure to advise former colleagues heading to China now about this policy.

Good luck.

PS

[doogsville]

The law requiring all foreign workers and their employers to pay the same kind of social insurance as Chinese workers was supposed to kick in in 2011. However many foreign companies complained about it, as did Chinese companies. Employers were required to pay between, in Shanghai at least, 60 and 300% of an employees average salary depending on how much they earned. Employees themselves, if I remember rightly, were supposed to contribute between 11% and 15% of their salary, it might have been more. The actual rate of contribution was to be set by individual provinces within a scale set by central government. Many foreign companies pointed out that they already paid social insurance for their employees in their home countries. Then there was the issue of whether anyone would actually get the money back when they left China, with many people highly sceptical.

Anyway, it seems to have come and gone. Like a lot of legislation in China, once it's been proposed and passed, however nonsensical it is, it remains in place to avoid loss of face. No one in government is capable of making a mistake, so no mistakes will be owned up to. I've never personally paid a penny, nor has anyone I've spoken to about it. I think some employers may have deducted money from FTs though. Whether it went into the social insurance scheme of the employers back pocket remains to be seen. There's a lot of info available via search engines, though as always there's a lot of conflicting information and opinion.

[Elicit]

A previous employer signed up for this scheme. It is of little benefit to the employee unless he / she is planning to pay in for a substantial amount of time and retire in China. Not sure if you can get the pension payments from abroad.

You get a little social security card and your pay advice slip will show all the deductions and what part of the scheme they were paid into. The benefits were being able to use your own money that had already been paid into the medical care part of the scheme at dentists and pharmacies, and receiving your personal pension contributions back on leaving China. Mine were about RMB 18k as I remember. A nice parting bonus, although it was my money in the first place.

[JeremyDay]

A lot of teachers have been working on this at my school. Apparently it is a healthy sum after a number of years. I'd have to search through our Wechat channel to find the particulars.