Social Security In China With JSC China Company
As a foreign employee, you must meet certain requirements to be eligible for social security in China. If you do, you will be able to enjoy social security benefits while working in the PRC. However, you have to keep in mind that the age of retirement in China varies for males and females. If you leave China before reaching the retirement age, you will continue to accumulate the period of contributions that you have made. Alternatively, you can request a lump-sum payment for the balance in your individual account, or inherit it.
China Social Security Exemptions for Foreigners
As a foreign employee, you will have to make up five different social insurances, each of which requires a certain percentage of your base salary. If you leave the company before the deadline for this policy ends, your employer can also force you to make up these costs as a severance payment.
It is important for foreign companies doing business in China to pay their share of social security. If you do not do so, you could have negative implications on your company’s credit with the government. To help you comply, JSC China Company provides professional services for foreign companies. It ensures that foreign companies contribute correctly and on time. In addition to the above benefits, JSC China Company will help you with your Social security in China.
The percentage of employer and employee contributions varies by city and province. For example, in Shanghai, employers and employees contribute 7% of their salary and the remaining 70% goes to a public account. These funds are then used to pay for medical expenses. Unlike private insurance in the United States, Chinese medical insurance will only cover treatments at government-approved hospitals. This includes medicines and private rooms.
China PEO/EOR And Employment Expert
For foreign companies who has no legal entity in China but want to hire employees working for them in China, the compliance way is to hiring them through a China PEO or EOR expert, and the China PEO vendor will help on handling the employee’s social security in China.
Besides health insurance, China’s social security system also offers unemployment insurance. Both the employer and employee must pay their share of the unemployment insurance contribution. This money is fully deposited in a public account managed by the government. The money is used to offer minimum support to unemployed individuals. Unemployed workers may apply for benefits through an application for unemployment insurance via a government app. The amount of contributions are adjusted annually. The duration of unemployment insurance benefits depends on how much the employer has contributed.
When you are setting up in China, you will need to take care of employment relations. If you are not an employer, a JSC China Company will help you with the process. If you have employees, you will have to transfer their employment relationship to the company. It is also important to choose the right service provider, as they will support you with the necessary monthly taxes and payroll. A JSC China Company will be the employer of record for your foreign employees in China.
This service is particularly helpful for foreign investors setting up a legal entity in China. With this service, you can invest your retirement funds in equities and receive tax benefits as well. JSC China Company has years of experience providing employment solutions to foreign investors and helping them register a legal entity in China.
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