Tuesday, November 1, 2011

Unofficial Translation Of China's New Social Insurance Rules For Foreigners

Please read this - be aware that after reading you make yourself sure if you are employed as a so-called "expat"in China - you better discuss this with your boss asap. They will push this law through & will take good care that ALL IS PAID PROPERLY ! Just imagine you are 35 years old and on your assignment from your company (lets say US, Aussie, French or Italy) in your company China office.
Better discuss a new salary asap with your boss. And all that you PAY IN you will get out when ? Yes if you choose to retire in China 30 years later ? If you leave earlier ? Better consider this money is gone - once the money is in China Man pocket it is very difficult to get it out of China Man pocket. Believe it or not - oh yes the law says you can get out a "lump sum" - Good luck ! Simply this whole law is an attempt to force out foreign managers, staff, experts etc. Take it that way !
quote
The following is an unofficial translation of China’s new interim measures covering foreign participation in China’s social insurance system by Jun He Law Offices in Shanghai:
Interim Measures for the Participation inSocial Insurance by Foreigners Employed in China

Article 1

The present Measures are formulated in accordance with the SocialInsurance Law of the People’s Republic of China (hereinafter the “Social Insurance Law”) in order to protect the lawful rights and interests of foreigners employed in China to lawfully participate in social insurance and receive social insurance benefits, and to strengthen social insurance administration.

Article 2

Foreigners employed in China shall refer to people who are not of Chinese nationality but are lawfully employed in China, and have obtained foreign resident permits and employment authorization, including Work Permits for Foreigners, Foreign Expert Certificates, Certificates of Resident Foreign
Correspondent, or hold a Permanent Resident Certificate for Foreigners.

 Article 3

Foreigners who are legally employed by organizations, including enterprises, public institutions, social organizations, privately-owned non-enterprise entities, foundations, law firms, and accounting firms, that are legally registered in China (hereinafter “Employing Units”) shall according to law participate in basic pension insurance for employees, basic medical insurance for employees,
occupational injury insurance, unemployment insurance and maternity insurance.
Employing Units and the foreigners shall pay social insurance premiums in accordance with regulations.
Foreigners who enter into employment contracts with employers outside of China and are dispatched to work in branches or representative offices registered in China (hereinafter “Domestic Work Units”) shall participate in basic pension insurance for employees, basic medical insurance for employees, occupational injury insurance, unemployment insurance and maternity insurance in accordance with law. Domestic Work Units and the foreigners shall pay social insurance premiums in accordance
with regulations.

Article 4

Employing Units that employ foreigners shall make social insurance registrations for the foreigners within 30 days of the handling of their employment authorizations.
Domestic Work Units shall make social insurance registrations for foreigners who are dispatched by employers outside of China to work in such Domestic Work Units in accordance with the provisions of the preceding paragraph.
Government agencies handling employment authorization for foreigners in accordance with law shall timely report to the local social insurance agencies of relevant information concerning employment of foreigners in China. Social insurance agencies shall make regular inquiries with relevant government agencies regarding the status of foreigners applying for employment authorization.

Article 5

Foreigners who participate in social insurance shall be entitled to social insurance benefits if they satisfy the prescribed conditions. Where a foreigner departs from China prior to reaching the age stipulated to draw a pension, his/her personal social insurance accounts will be retained, and his/her
social insurance contribution periods can be calculated cumulatively when he/she re-enters and is employed in China. If a foreigner applies in writing to terminate his/her social insurance relationship, the social insurance agencies may also pay the foreigner the amount deposited in his/her personal social insurance accounts in one lump sum.

Article 6

 In case of a foreigner’s death, the amount remained in his/her personal social insurance account can be legally inherited.

Article 7

Foreigners who receive monthly social insurance benefits outside of China shall provide at least annually a survival certificate, as issued by a Chinese embassy or consulate, or notarized by a competent entity and legalized by a Chinese embassy or consulate in their resident countries, to the social insurance agencies responsible for paying their social insurance benefits.
Where a foreigner lawfully enters China, he/she may prove his/her survival status personally before social insurance agencies, and thus no longer provide survival certificates as prescribed in the preceding paragraph.

Article 8

If any dispute arises between a foreigner legally participating in social insurance and his/her Employing Unit or Domestic Work Unit in respect of social insurance, the foreigner may apply for mediation, arbitration or file a lawsuit in accordance with law. If the Employing Unit or the Domestic Work Unit infringes upon his/her rights and interests in social insurance, the foreigner may also request the administrative department of social insurance or the agencies responsible for collecting social insurance premiums for handling in accordance with law.

Article 9

For foreigners employed in China who are nationals of countries that have entered into bilateral or multilateral treaties relating to social insurance with China, their participation in social insurance shall be handled in accordance with such treaties. {REMARK: This is only valid for the moment for South Korea & Germany}

Article 10

Social insurance agencies shall create social insurance numbers for foreigners and issue social insurance cards of the People’s Republic of China to foreigners in accordance with the Social Insurance Numbering Rules for Foreigners.

Article 11

Social insurance administrative departments shall supervise and inspect the status of foreigners’ participation in social insurance in accordance with the Social Insurance Law. Any Employing Unit or Domestic Work Unit failing to lawfully make social insurance registrations or pay social insurance premiums for foreigners that they employ shall be subject to the Social Insurance Law, Social Insurance Supervision Regulation and other laws, administrative regulations and relevant rules.
Employing Units who employ foreigners without obtaining employment authorization in accordance with law or not holding a Permanent Resident Certificate for Foreigners shall be subject to the Administrative Provisions on Employment of Foreigners in China.

Article 12

The present Measures shall become effective on October 15, 2011
unquote

I am sure that now you understand everything - isn't it ? Be aware heavy penalties will be imposed on those who do not obey the law !

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