Pension plan for foreigners
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China.org.cn, December 23, 2011
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China passed a law this summer requiring foreign workers and their employers to contribute to a social security fund. |
Foreign residents who sign up to a new social security system will be able to retire in China and draw a pension, said an unidentified official from the Beijing Bureau of Human Resources and Social Security on Thursday.
China passed a law this summer requiring foreign workers and their employers to contribute to a social security fund. Foreigners who work in China are supposed to have started paying into from October.
The government has so far given only basic details about the plan, and many of the details are still being ironed out.
According to 2011 plans by the bureau , current pension policies allow foreigners to enjoy the same pension level as local retirees if they pay premiums monthly -- which could be as much as 8 percent of their income bases.
The lack of clarity has caused a stir among foreign residents in the country as the social security plan–which covers pension, medical expenses, unemployment, work-related injuries, and maternity–will have a significant financial effect on businesses with foreign staff.
One of those concerns has been that foreigners will not be able to access money from unemployment benefits or pensions because work visas are tied to jobs and become invalid when a person is no longer employed.
According to a Xinhua News Agency report, money will also be paid back upon "written application at the end of the social insurance relationship." Otherwise, the money will be kept "until (the person) returns to work again in China."
There are an estimated 600,000 foreigners living in China, nearly 232,000 of which have work permits, according to 2010 Census data. Of the 30,000 foreigners working in Beijing, only 2,000 had so far registered to pay the new tax, the report said.
To date, no city in China has begun to collect the taxes, despite the law having gone into effect on Oct. 15. But all local governments will begin collecting by the end of the year and the payments will be retroactive.
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