Posted by on 8. Oktober 2021

A new social security agreement between Switzerland and China will enter into force on 19 June 2017. This agreement will greatly facilitate the temporary secondment of employees to the other country by companies in China and Switzerland. Do those who work as English teachers in universities have a portion of their taxes for social security or are university professors exempt? Hello, you list several countries that will be exempt from the social security premium. When they called the relevant authorities here in Beijing, they only told us about South Korea and Germany, but no other country. Together with Germany and South Korea, Switzerland is now one of three countries that have concluded a social security agreement with China. This agreement brings new perspectives for the tasks between China and Switzerland. For example, multinationals with Swiss subsidiaries are now considering using Switzerland as a host site for major assignments in China, so that beneficiaries can benefit from Switzerland`s robust pension and social security system. Another exception applies to foreign workers whose country of origin has a social security agreement with China who, in this case, does not need to be paid (because the worker still contributes at home). These countries include Germany, Canada, Japan and other countries where pension and/or unemployment are exempt. The first step is to calculate the social security contribution base, which uses the previous year`s salary divided by 12 (new employees use the starting salary). There are minimum and maximum contribution bases, depending on the place of work. This is then verified and a copy is saved.

After verification of this documentation and possibly verification and certification, the worker concerned is exempt from the corresponding social security contributions. While regional authorities manage the social security system, not all regional governments have adopted the rules for implementing China`s international social security agreements. While social security exemption agreements offer cost advantages to China-based enterprises, companies should act with caution as they use them. If the country of origin does not have a social security agreement with China, how can we avoid double payment for employers and workers? The bilateral agreement between China and Switzerland allows posted workers to be exempted from the obligation to contribute to the other country`s social security system for up to six years, which could avoid double coverage of social security contributions for temporary assignments in the other country.2 China has signed social security agreements with 12 countries. But only ten such agreements have been implemented. Currently, expatriates from Denmark, Canada, Finland, Germany, South Korea, Switzerland, the Netherlands, Spain, Luxembourg and Japan are entitled to social security exemptions throughout China. However, since social security is managed at the regional level, there are a number of inconsistencies between cities. As a result, most major cities have implemented their respective requirements for foreign personnel. The national system requires expatriates to contribute, but some regions have other rules for foreigners. For example, Shanghai does not require expats to contribute to social security, and other cities may only require certain insurances, such as for example. B medical. Helen Kong, Director of Human Resources Administration and Paid Services at Dezan Shira & Associates, explains: „Officials at social security offices are often unsure how they should implement social security exemptions for foreign workers.

Many cities don`t have local rules about this, especially in second- and third-row cities. China`s social security system consists of five different types of insurance and a compulsory housing fund. . . .