Expatriates working in China Shall Participate in Chinese Social Insurance Schemes

According to Article 97 of Social Insurance Law applied since July 1st,2011, expatriates working in China shall participate in social insurance schemes.

Lee & Lee Associates Comments: The implementation of Social Insurance Law obviously will increase the operation cost of employers who hires expatriates. Employers may need re-evaluate human resource plan of whether hire local staff or expatriate. To expatriates, if the arrangement is only a short term transfer, he or she will leave China after the termination of the contract. The expatriate may not think the Chinese social welfare beneficial. In complying with the above law, the employers shall consider various impacts and work out relevant measures in responding.

Relevant Rule: Social Insurance Law of the People’s Republic of China