When expatriates leave China after a period of employment, they are often entitled to reclaim part of the social insurance contributions they made during their time in the country. Many miss out on these funds simply because the process is unfamiliar or was not flagged before departure.
This guide explains what can be withdrawn, how the process works and what to prepare before leaving China.
- Expatriates leaving China can withdraw their personal pension and unemployment insurance contributions as a lump sum, but employer contributions are retained by the government and are not refundable.
- The withdrawal process involves coordinating with the employer’s HR team, attending a social insurance bureau appointment and keeping a Chinese bank account and mobile number active until funds are received.
- Expatriates who have contributed for a sufficient number of years may be eligible for a Chinese pension upon reaching the statutory retirement age, though qualifying thresholds are subject to ongoing adjustment.
- Repatriation of withdrawn funds is subject to foreign exchange controls, and transfers above certain thresholds require certified tax documentation.
What can be withdrawn from social insurance in China?
Expatriates who do not plan to draw a Chinese pension upon retirement can withdraw the personal contributions they made to their pension and unemployment insurance accounts. Only the employee’s share is refundable. The employer’s contributions to the pension and unemployment fund are retained by the government and cannot be claimed.
The following table summarises what is and is not refundable for expatriates leaving China:
| Insurance type | Employee contributions | Employer contributions |
|---|---|---|
| Pension | Refundable as a lump sum | Retained by the government |
| Unemployment insurance | Refundable as a lump sum | Retained by the government |
| Medical insurance | Account balance withdrawable separately | Not refundable |
| Work-related injury insurance | Not applicable | Not refundable |
| Maternity insurance | Not applicable | Not refundable |
Medical insurance contributions sit in a separate personal account and can be withdrawn independently at any time during employment by presenting the medical insurance account book at the designated bank. Expatriates who already have private healthcare insurance may find it practical to withdraw the medical account balance periodically rather than waiting until departure.
Pension options in China as a long-term contributor
Expatriates who have contributed to the pension system for a sufficient number of years may be eligible to receive a monthly Chinese pension upon reaching the statutory retirement age. Whether this is worth pursuing depends on the individual’s contribution history, planned retirement location and how long they intend to remain in China.
Retirement age and minimum contribution requirements
China’s statutory retirement age varies by gender and role and is subject to gradual adjustment over time. The minimum contribution period required to receive monthly pension benefits is also increasing progressively. Expatriates approaching either threshold should confirm the current qualifying age and minimum years with the Ministry of Human Resources and Social Security (MOHRSS) or a professional adviser.
Lump sum withdrawal or retaining the account
Most expatriates who leave China before reaching retirement age choose to withdraw their personal contributions as a lump sum rather than retain the account. Monthly pension amounts tend to be modest, particularly for those whose salaries exceeded the city contribution ceiling, as contributions above that cap do not increase the eventual entitlement. Retaining the account remains an option for those who may return to work in China, as prior contribution years carry over.
Estimating the withdrawable amount
The total refundable on departure depends on the contribution base, applicable rates and number of years contributed. The following example illustrates what a departing expatriate in Beijing might expect after four years of contributions on a monthly salary of CNY 20,000.
- Monthly salary: CNY 20,000
- Pension contribution (8%): CNY 1,600 per month
- Unemployment contribution (0.5%): CNY 100 per month
- Total monthly employee contribution: CNY 1,700
- Withdrawable amount after four years: CNY 81,600
Contribution bases and rates vary by city and are updated periodically. Employer contributions are not included above and are not refundable. Other cities have different rates, and the actual amount will vary depending on the city, contribution history and whether the salary exceeded the local contribution ceiling in any given year.
How to claim social insurance when leaving China
The withdrawal process involves several steps between the expatriate, their employer and the local social insurance bureau. Starting early reduces the risk of delays, particularly if tax reconciliation issues arise. For guidance on employment contract termination procedures, see our guide on employment and labour law in China.
Step 1: Notify the employer
Inform the company of the intention to leave and begin the labour contract termination process. This generally involves submitting a resignation letter at least one month before the planned departure date.
Step 2: Coordinate with HR
Once the company is notified, HR begins the termination process through government-approved online systems. The expatriate should also inform HR of the intention to close the social insurance account at this stage, as additional documents need to be prepared and downloaded for the social insurance bureau appointment.
Step 3: Attend the social insurance bureau appointment
The expatriate attends the social insurance bureau with the required documents. Documents typically required include:
- ID card of the handler
- Company seal
- Business licence
- Copy of the expatriate’s original passport
- Departure certificate
- Proof of resignation
Requirements can vary by city, so confirm the specific documents needed with the local bureau or HR team in advance.
Step 4: Receive funds
If the application is processed without issues, the withdrawn amount is typically deposited into the expatriate’s Chinese bank account within two months. It is important not to close the Chinese bank account or cancel the Chinese mobile number before receiving the funds, as both are needed to access and verify identity during the process.
In some cases, outstanding tax issues may need to be resolved before the withdrawal can be completed. Where this occurs, it is generally the employer’s responsibility to address the discrepancy.
Transferring withdrawn funds from China
Once the withdrawal is received into a Chinese bank account, expatriates wishing to repatriate the funds should be aware of the following:
- Transfers without certified tax receipts are subject to an annual limit. Amounts exceeding this limit require certified tax receipts confirming that the relevant taxes have been filed and paid.
- For larger transfers, it is advisable to visit the bank in person to discuss transfer options, as individual bank limits on CNY exchange can affect how much can be converted in a single transaction.
- Transfers incur standard transfer and exchange fees, provided the transaction is between personal accounts rather than corporate accounts.
- Tax certificates should be obtained for all declared income, including non-taxable income, as these serve as supporting documentation for overseas remittances.
For businesses looking to transfer business profits out of China separately, see our guide on profit repatriation in China.
Conclusion
Claiming social insurance contributions before leaving China is a straightforward process when started early and coordinated properly with the employer. The key is to initiate the account closure alongside the labour contract termination, keep the Chinese bank account and mobile number active until funds arrive and make sure tax documentation is in order for any overseas transfer. Requirements vary by city, so confirming local procedures with HR or a professional adviser before departure helps avoid unnecessary delays.
How Acclime can help with social insurance claim in China
Understanding the social insurance withdrawal process while managing a departure from China involves multiple steps across HR, tax and banking. Acclime China can guide both expatriates and companies through the full process, from coordinating the social insurance account closure and preparing the required documentation to resolving any tax issues that arise before the withdrawal is approved. Contact us to find out how we can support your social insurance claim in China.
Contact our teams for expert support and further information about HR and employment solutions in China to ensure you are compliant in the market.
Grace Zhang, HR Services Manager, g.zhang@acclime.com
Stella Zhou, HR & Payroll Director, y.zhou@acclime.com
Jacob Ketcher, Business Development Manager, j.ketcher@acclime.com
