Member's Article: How do foreigners participate in social insurance in Shanghai?
How do foreigners participate in social insurance in Shanghai?
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Recently, we received a consultation from a foreign-funded company’s HR. A foreigner has been recruited for their senior management position and asked the HR when the company can pay social insurance for him. This is the first time they employed a foreigner, the HR is confused that whether or not foreigners working in Shanghai can participate in Shanghai's social insurance, so they came to consult us. Do you know the answer? If not, let's solve the problem for you together!
Do foreigners working in Shanghai need to pay social insurance?
Yes! Since October 15, 2011, while hiring foreigners, Employer shall participate in the basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance and maternity insurance in accordance with the law. A foreigner who was employed in China before October 15, 2011 may agree on social insurance payment with the Employer in its labor (employment) contract. It means that October 15, 2011 is a cut-off day. Before this date, The Employer is not forced to pay social insurance contributions for foreigners working in China, but after this date, it becomes mandatory!
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