Social insurance and the housing fund registration in China is something that foreign expats need to know. China’s Social Insurance Law provides that foreigners working in the country are required to participate in the national social insurance scheme. When hiring a new staff member, employers need to register him or her with the local Social Insurance Bureau and the Housing Fund Bureau. Registration procedures may vary in each city.
Foreign expats working in China should participate in the Five Insurances, i.e., pension, medical, work-related injury, unemployment and maternity insurance programs in accordance with the law, with the social insurance premiums borne by both themselves and their employers. Foreigners working in China refer to those who:
(1) Do not have Chinese nationality;
(2) Have obtained the Employment Permit for Foreigners, the Certificate of Foreign Experts, the Press Card for Foreign Resident Correspondents and other employment permits and residence permits for foreigners pursuant to the law;
(3) Hold a Permanent Residence Permit for Foreigners; and
(4) Are lawfully working within the territory of the People’s Republic of China.
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Registration of Social Insurance
To be able to hire staff, the company needs to obtain a social insurance number. After obtaining the social insurance number, companies need to enter the employee’s details into the software provided by the Social Insurance Bureau. This information includes the employee’s salary, as this determines the social security contribution to be made.
Companies can sign a contract with an eligible bank to ensure that payments are made directly to the Social Insurance Bureau each month. In most cases, the first payment should be done by company-issued check. Funds can be automatically debited from the second month on.
Registration of Housing Fund
Registering with the Housing Fund Bureau typically requires the following steps:
1. Opening an account with the Housing Fund Bureau. Companies usually need to bring the company business license and an ID document of the company’s legal representative.
2. Applications are generally approved immediately. The company will receive a special account number for payments to the housing fund.
3. Companies need to sign a contract between the Housing Fund Bureau, the company and an eligible bank to automate contribution payments. As with social insurance, the first payment needs to be made by a check issued by the company.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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