Social security participation in China is mandatory for expatriates with valid working permits, regardless of their employment arrangement. As China continues to attract foreign talent across major centres such as Beijing, Shanghai and Guangzhou, understanding how the system applies to non-Chinese nationals has become an increasingly important part of contract negotiation, benefits planning and cost management.
This guide provides expatriate social security obligations in China, including contribution requirements, available benefits and the impact of bilateral agreements on potential exemptions, with the aim of helping employers and individuals understand their obligations and make informed decisions.
- Social security is compulsory for all foreigners legally employed in China, and it is the employer’s responsibility to register and remit contributions within 30 days of issuing employment documents.
- Social security covers five areas: pension, basic medical insurance, unemployment, work-related injury and maternity and paternity insurance, with contribution rates varying by city.
- Expatriates who leave China before qualifying for pension benefits can either retain their account for future use or withdraw their personal contribution balance as a lump sum.
- Employers can supplement mandatory coverage with international health insurance and travel medical insurance to address language barriers and gaps in standard public health access.
Who is required to participate in Chinese social security coverage?
China defines a foreign employee as a non-Chinese national holding a valid working permit and residence permit. Work permits take different forms depending on the role, including a standard work permit, a Foreign Expert Certificate for specialists, a Permit for Permanent Foreign Journalists or, for long-term residents, the Foreigner’s Permanent Residence Card.
Social security is mandatory for all foreigners in these categories who are employed in China’s Mainland. It is important to note that Mainland China, Taiwan, Hong Kong and Macau operate under distinct legal systems, and social security obligations differ across these jurisdictions.
As an exemption, if a foreign employee has already reached or exceeded the legal retirement age when they begin working in China, they are not required to participate in social insurance.
Employer responsibilities and registration
Under the Interim Measures for Participation in Social Security of Foreigners Employed in China, the obligation to register and pay social security contributions falls on the employing organisation. There are two main employment arrangements for expatriates: direct employment and overseas dispatchment.
Direct employment
If a Chinese company has signed a labour contract directly with the expatriate, the employer registers the employee for social insurance within 30 days of issuing their employment documents and makes monthly contributions on their behalf. Social security premiums are withheld and paid directly to the relevant agency by the employer, so expatriates do not need to pay in person.
Overseas dispatchment
Where an overseas company sends an employee to work in China under a contract signed abroad, the domestic entity receiving the employee is responsible for social security registration and payment. This includes branches of foreign enterprises and representative offices operating in China, provided they hold valid establishment documents and approvals. Social security premiums are withheld and paid directly to the relevant agency by the employer.
How contributions are calculated for expatriates
Contribution rates and bases follow the same city-specific framework that applies to local employees. To illustrate how contributions are calculated, consider an expatriate earning RMB 25,000 per month in Beijing. Social security contributions are based on a prescribed monthly salary range, with both minimum and maximum thresholds set by the city. For 2025–2026, Beijing’s contribution base ranges from a floor of RMB 7,162 to a ceiling of RMB 35,811.
Since RMB 25,000 falls within these limits, the full salary is used as the contribution base.
| Insurance type | Employee rate | Monthly amount (RMB 25,000 base) |
| Pension | 8% | RMB 2,000 |
| Medical insurance | 2% + RMB 3 | RMB 503 |
| Unemployment | 0.5% | RMB 125 |
Beijing’s unemployment insurance rate for employees was adjusted from 0.2% to 0.5% in May 2023. Employer contribution rates are additional and are not included in the figures above.
Benefits and withdrawal options on departure
Expatriates who meet the prescribed conditions are entitled to the same social security benefits as Chinese nationals. In practice, this means access to public hospitals through basic medical insurance and pension accumulation over time.
Leaving China before qualifying for pension benefits
When an expatriate leaves China before reaching retirement age or qualifying for pension benefits, two options are available for their social insurance account.
- Retain the account: contribution years are preserved and continue to accumulate if the expatriate returns to work in China in the future
- Close the account and withdraw: the expatriate submits a written application to terminate their social insurance relationship and receives the balance of their personal pension account as a lump sum. It is important to understand that a lump sum withdrawal only includes the employee’s personal contributions, which are deducted from their monthly salary. The employer’s contributions to the pension fund are retained by the government and are not refundable.
If the withdrawal amount exceeds RMB 50,000, the expatriate needs to provide proof of tax compliance to their Chinese bank before converting the funds from RMB and remitting them to an overseas account.
Medical insurance and inheritance
Expatriates can also withdraw the balance of their personal medical insurance account when leaving. To do this, they visit their designated bank and present their medical insurance account book, which is typically provided by the employer upon registration. For a full walkthrough of the withdrawal process and what to prepare before departure, see our guide on claiming social insurance as an expatriate leaving China. If an expatriate passes away while holding a social security account in China, the remaining balance in their personal pension account can be inherited by their beneficiaries.
Bilateral social security agreements
To prevent expatriates from having to contribute to social security in both their home country and China, China has entered into bilateral totalisation agreements with several countries. These agreements allow eligible nationals to be exempt from certain contributions in China, as long as they remain covered by the corresponding system in their home country.
As of 2026, China has 11 bilateral social security agreements in effect:
| Agreement scope | Countries |
|---|---|
| Pension and unemployment insurance | Germany, South Korea, Finland, Switzerland, the Netherlands, Spain and Serbia |
| Pension insurance only | Denmark, Canada, Luxembourg and Japan |
Note: France has signed an agreement with China, but it has not yet come into effect.
Exemptions are not automatic. The employer needs to apply through the relevant local social insurance bureau and submit supporting documentation, including a certificate of coverage from the home country authority. If you are a national of one of these countries, your employer should confirm which contributions are exempt and make sure the correct documentation is in place before payroll is processed.
Supplementary insurance options
Although mandatory social security gives expatriates access to public hospitals on the same basis as Chinese nationals, language barriers can make it difficult to use the public health system in practice.
Companies can address this by purchasing supplementary insurance products:
International health insurance
Provides access to international hospitals in China where English-speaking staff or on-site translators are available. This type of coverage can also include general accident insurance and income compensation in the event of major illness, accidental disability or death
Travel medical insurance
For expatriates who travel regularly between China and their home country, travel medical insurance can cover emergency medical expenses and repatriation costs when outside China
Whether and to what extent companies provide supplementary insurance is at their discretion, but it is often used as part of a broader expatriate benefits package.
Conclusion
Social security in China applies to expatriates in the same way it applies to Chinese nationals, with the employer carrying the primary responsibility for registration, contribution and compliance. Understanding how the system works, including what is covered, what can be recovered on departure and whether a bilateral agreement applies, allows you to plan your employment arrangements and benefits structure more effectively.
For companies hiring foreign talent in China, early engagement with HR and tax professionals can help avoid registration delays, identify applicable treaty exemptions and ensure payroll is set up correctly from day one.
How Acclime can help with social security compliance in China
Acclime China provides end-to-end HR and payroll support for companies employing expatriates across China. From social security registration and monthly contribution management to bilateral agreement assessment and departure planning, our team handles the compliance details so you can focus on operations.
Contact us for expert support and further information about HR and employment solutions in China to ensure you are compliant in the market.
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
