Expats to pay social insurance in Shanghai
According to the “Social Insurance Law of PRC”, a national policy issued in 2011, foreigners working in China are required to contribute to the social insurance program. This includes contributions towards pension, medical insurance, work-related injury, unemployment and maternity. However, in practice the Shanghai Human Resources and Social Security Bureau never enforced the national law, instead adopting a local regulation Notice [2009] No. 38 which allowed for expats working in Shanghai to opt out of mandatory social insurance contribution. This notice was renewed and extended by Notice [2016] No. 301 in 2016 until 15 August 2021.
The Shanghai Social Insurance Bureau has now said that the Notice will not be extended further so foreigners working in Shanghai will also be subject to the national law and obliged to make social security contributions.
Meanwhile, authorities have adjusted the maximum cap on the social insurance contributions to RMB 31,014. The minimum amount is RMB 5,975 from which the social security contribution is calculated.