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Fewer Jobs for Foreigners in China!?!

Forum Home » Practical Advice » Working in Beijing
Posted Sep 16, 2011 10:07am by biggberd04

Has anybody else read about foreigners being required to join Chinese social security next month in China and pay 11% of their salary towards this (more importantly employers of foreigners would have to pay 37%!!) and/or have news to share on it? If its enforced strictly, it could mean a lot of foreigners not being hired in the future. But then again, perhaps it won't be enforced strictly/ only apply to certain fields/ industries?

http://www.forbes.com/sites/russellflannery/2011/09/10/china-hits-foreig...

http://shanghaiist.com/2011/09/12/chinas_new_social_benefits_for_fore.ph...


Re: Fewer Jobs for Foreigners in China!?!

Posted by: Nidaye on Sep 19, 2011 5:57pm

Firstly, the amount you pay is capped. From the article you posted:

"The salary open to taxation will be capped at no more than three times the average salary in any given city, meaning that the ultimate burden will be lower for expats whose salaries exceed that that amount.

Secondly, you can get most of your contributions back if/when you leave China.

Re: Fewer Jobs for Foreigners in China!?!

Posted by: Schnitz on Oct 29, 2011 12:24am

The issue is the employer contribution, it is 32.1% and I'm not sure if it's capped. Employee contribution is 10.2%+3RMB and capped at 1288.51RMB/Month. For Germans and Koreans it's even less, since they are not forced to take the medical and might pay pension and unemployment back home. Funny enough, a German pension is now cheaper than a Chinese one. *lol*

Re: Fewer Jobs for Foreigners in China!?!

Posted by: Nidaye on Nov 16, 2011 4:13pm
Schnitz wrote:
The issue is the employer contribution, it is 32.1% and I'm not sure if it's capped. Employee contribution is 10.2%+3RMB and capped at 1288.51RMB/Month. For Germans and Koreans it's even less, since they are not forced to take the medical and might pay pension and unemployment back home. Funny enough, a German pension is now cheaper than a Chinese one. *lol*

I just had a discussion my HR rep about this subject. It appears that the employer contribution is also capped in the same way as the employee contribution. If my calculations are correct, that would be around 4055RMB.

Again, you can withdraw most of this (including the employer portion) when you retire or leave China, so for those of you who have a legit job it's good news.

Re: Fewer Jobs for Foreigners in China!?!

Posted by: Schnitz on Nov 18, 2011 12:10am

You will only be able to get the pension and medical back, and of that only the employee contribution. Everything else is BS. Further, the way how you can get the pension money, which is the biggest chunk, back has not even been laid out yet. I strongly doubt that they are hurrying to provide a convenient way for foreigners to get their contributions back. Honestly...it's just a stealth tax, not even a very stealthy one.

Re: Fewer Jobs for Foreigners in China!?!

Posted by: gdbill on Nov 25, 2011 7:20pm
Nidaye wrote:
Schnitz wrote:
The issue is the employer contribution, it is 32.1% and I'm not sure if it's capped. Employee contribution is 10.2%+3RMB and capped at 1288.51RMB/Month. For Germans and Koreans it's even less, since they are not forced to take the medical and might pay pension and unemployment back home. Funny enough, a German pension is now cheaper than a Chinese one. *lol*

I just had a discussion my HR rep about this subject. It appears that the employer contribution is also capped in the same way as the employee contribution. If my calculations are correct, that would be around 4055RMB.

Again, you can withdraw most of this (including the employer portion) when you retire or leave China, so for those of you who have a legit job it's good news.

You do not get the employer portion back unless you actually make it to retirement and get it back in pension payments.

"Truth is not a commodity in short supply: The problem is, there's very little demand for it." -- ???

Re: Fewer Jobs for Foreigners in China!?!

Posted by: weagesdf on Dec 5, 2011 9:34am

ya... everyone i knows works on l, f, or tourist visa....

They call me 撸撸.
I am Mr. 撸管

Re: Fewer Jobs for Foreigners in China!?!

Posted by: Nidaye on Jan 6, 2012 2:08pm
gdbill wrote:
Nidaye wrote:
Schnitz wrote:
The issue is the employer contribution, it is 32.1% and I'm not sure if it's capped. Employee contribution is 10.2%+3RMB and capped at 1288.51RMB/Month. For Germans and Koreans it's even less, since they are not forced to take the medical and might pay pension and unemployment back home. Funny enough, a German pension is now cheaper than a Chinese one. *lol*

I just had a discussion my HR rep about this subject. It appears that the employer contribution is also capped in the same way as the employee contribution. If my calculations are correct, that would be around 4055RMB.

Again, you can withdraw most of this (including the employer portion) when you retire or leave China, so for those of you who have a legit job it's good news.

You do not get the employer portion back unless you actually make it to retirement and get it back in pension payments.

If that's the case then I've been given bad information. Will need to look into this.

Re: Fewer Jobs for Foreigners in China!?!

Posted by: Nidaye on Jan 6, 2012 2:08pm
gdbill wrote:
Nidaye wrote:
Schnitz wrote:
The issue is the employer contribution, it is 32.1% and I'm not sure if it's capped. Employee contribution is 10.2%+3RMB and capped at 1288.51RMB/Month. For Germans and Koreans it's even less, since they are not forced to take the medical and might pay pension and unemployment back home. Funny enough, a German pension is now cheaper than a Chinese one. *lol*

I just had a discussion my HR rep about this subject. It appears that the employer contribution is also capped in the same way as the employee contribution. If my calculations are correct, that would be around 4055RMB.

Again, you can withdraw most of this (including the employer portion) when you retire or leave China, so for those of you who have a legit job it's good news.

You do not get the employer portion back unless you actually make it to retirement and get it back in pension payments.

If that's the case then I've been given bad information. Will need to look into this.

Re: Fewer Jobs for Foreigners in China!?!

Posted by: gdbill on Jan 6, 2012 8:57pm
Nidaye wrote:
gdbill wrote:
Nidaye wrote:
Schnitz wrote:
The issue is the employer contribution, it is 32.1% and I'm not sure if it's capped. Employee contribution is 10.2%+3RMB and capped at 1288.51RMB/Month. For Germans and Koreans it's even less, since they are not forced to take the medical and might pay pension and unemployment back home. Funny enough, a German pension is now cheaper than a Chinese one. *lol*

I just had a discussion my HR rep about this subject. It appears that the employer contribution is also capped in the same way as the employee contribution. If my calculations are correct, that would be around 4055RMB.

Again, you can withdraw most of this (including the employer portion) when you retire or leave China, so for those of you who have a legit job it's good news.

You do not get the employer portion back unless you actually make it to retirement and get it back in pension payments.

If that's the case then I've been given bad information. Will need to look into this.

Yes, you were given bad information. The employer contribution is never refunded or made available to the employee unless they actually retire and live long enough to collect it via their monthly pensions. Nobody -- Chinese or expat -- gets the employer's contributions refunded.

"Truth is not a commodity in short supply: The problem is, there's very little demand for it." -- ???

Re: Fewer Jobs for Foreigners in China!?!

Posted by: Nidaye on Jan 9, 2012 3:03pm
gdbill wrote:
Yes, you were given bad information. The employer contribution is never refunded or made available to the employee unless they actually retire and live long enough to collect it via their monthly pensions. Nobody -- Chinese or expat -- gets the employer's contributions refunded.

That makes sense. So is this an incentive to retire in China? Hmm... naw, maybe not. Smile

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