All expats working legally in China (namely, expats holding a work permit) can participate in the social insurance scheme for employees. There are five types of social insurance in total:
a) pension;
b) medical insurance;
c) work injury insurance;
d) unemployment insurance; and
e) maternity insurance.
In the remaining part of this post we are going to share with readers individual requirements which are of most concern.
1. Pension
According to related regulations, the minimum contribution time for employees to receive a pension is 15 years, which means, if any employee has reached the statutory retirement age and had made pension contributions previously for 15 years cumulatively, the employee is eligible to receive a corresponding pension on a monthly basis upon retirement.
2. Medical insurance
Tere is no unified standard for the minimum contribution time for medical insurance. As a matter of fact, the minimum contribution time for men and women are different in some places. So, it depends on the local policy where the employees are retiring to determine whether they can enjoy medical insurance when they are going to retire, or how to meet the minimum contribution standard.
1) We researched some local standards as follows:
Shanghai: 15 years;
Hangzhou: 20 years;
Guangzhou: 10 years;
Beijing: 20 years for women, 25 years for men;
Suzhou: 25 years for women, 30 years for men;
Tianjin: 20 years for women, 25 years for men;
Chengdu: 20 years, or continuously for 15 years;
Wuhan: 25 years for women, 30 years for men;
Xi’an: 25 years for women, 30 years for men;
Yantai: 25 years for women, 30 years for men;
2) What can employees do if they did not make sufficient contributions upon retirement?
(a）One-off make-up payment.
In some places, unpaid medical insurance premiums can be paid before the employee retires one-time
(b）Continue to pay.
In some places, unpaid medical insurance premiums will not affect the employee to retire once he reaches the retirement age. The employee may continue to pay for the medical insurance until it is up to the local standard.
It’s strongly recommended that you consult your local social security center for the latest information, if you are about to retire in the near future.
3. For maternity insurance, please check our previous post: Maternity Leave and Allowances in China
Related regulations:
《Social Security Law of the People’s Republic of China》
Article 27：Where an individual participating in employees’ basic medical insurance has made cumulative contributions for the period stipulated by the State when he/she attains statutory retirement age, he/she shall not be required to contribute basic medical insurance premiums upon retirement, and shall be entitled to basic medical insurance benefits pursuant to the provisions of the State; where an individual has not made cumulative contributions for the period stipulated by the State when he/she attains statutory retirement age, he/she may continue to make contributions up to the period stipulated by the State.
Useful link:
Ministry of Human Resources and Social Security of the People’s Republic of China
4 Comments.
Is it mandatory that employers pay Pension for foreign employees? What is the recourse if they have not paid into the fund?
Yes. If you work in China legally. You may check our other articles for more info, and can complain it with local labor bureau.
Will filing a complaint with the locallabour bureau result in the employee being able to claim social insurance not paid by the employer for the duration of the contract, or can that only be done through formal arbitration or litigation?
No, won’t. actually, labor arbitration won’t cover social insurance. You may either filing a complaint with labor bureau or social insurance center.