- No. of Pages: 12 pages
In this issue:
- Overview of the New Social Insurance Law
- How the New Law Affects the Five Insurances
- Social Security Cost-Benefit Tables, Complications for Foreign Employees
- Differences in Implementation Across the Country
On September 9, China's Ministry of Human Resources and Social Security finally clarified that foreigners are to be included in the Chinese social insurance system. The implementation date for this transition is to be October 15, 2011, however it remains to be seen whether social insurance bureaus across the country will be ready to accept the participation of foreigners at that time. Whatever happens, the inclusion of foreigners was formally indicated when the new social insurance law was promulgated in October 2010 and has been anticipated for quite a while. Now the focus for foreign direct investors will shift to an assessment of the consequences of the change and reviewing their HR policies to see if the policies need amending.
This edition of China Briefing will summarize some of key points in the newly implemented social insurance law, which covers a great deal more than just incorporating foreigners into the system. We will go on to explain the costs and benefits of participation by foreign employees to both companies and individuals. Unfortunately, the costs are likely to outweigh the benefits for both parties. Finally, we will then proceed to take a look at some of the trends across the country relating to the implementation of the law. As with many regulatory matters in China, implementation is by no means uniform nationwide.