WSJ reports:
This summer China passed a new law, which technically went into effect on October 15, requiring foreign workers and their employers to contribute to a social security fund. To help foreigners living in China better understand what the new social security tax means, China Real Time has compiled a list of facts that the Ministry of Human Resources and Social Security has revealed thus far:
1. Pricing
Every city will have its own pricing scheme, requiring companies to pay a percentage of an employee’s salary to the social security fund. The individual contribution will hover around 10% of the employee’s salary. The Ministry of Human Resources and Social Security recommends that every individual check with a local bureau to determine rates.
For Beijing, companies will contribute the following percentage based on an employee’s salary per month, with a salary cap of 12,603 yuan ($1,981):
2. Start Date The law will be implemented by year-end and money will be collected according to an Oct. 15 start date, requiring retroactive payments.
3. Medical Insurance The Ministry of Human Resources and Social Security says the medical insurance plan will allow foreigners to choose which hospitals they’d like to go to. An unspecified percentage of expenses will be reimbursed using the funds from the account.
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