Government signs international agreements for social insurance

September 12, 2012 | BY

clpstaff &clp articles

The Social Insurance Law received a mixed reception from foreigners worried about increased tax burdens. Many provinces have yet to issue implementing regulations, but new international agreements to end double contributions could change that

So far the government has only signed deals with South Korea and Germany, but more agreements are expected.

    “China needs to move forward in this direction, given the number of expatriates is increasing,” said Zhou Bo of Fangda Partners in Shanghai. “Cities are likely to require expatriates to participate in the social insurance system as more agreements are signed,” he added.

    The PRC Social Insurance Law (中华人民共和国社会保险法) became effective in July last year and requires foreigner employees to participate in the government schemes for pension, medical care, work-related injury, unemployment and maternity.

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