Does the company need to pay social security for foreign employees?

With the continuous development of China's social economy, the number of foreign nationals coming to work in China from all over the world is also increasing.

So, do companies need to pay social security for their foreign employees?

The answer is: Yes.

According to article 2 of the Labour Contract Law, this Law applies to enterprises, individual economic organizations, private non-enterprise units and other organizations within the territory of the People's Republic of China (hereinafter referred to as employers) when they establish labour relations with their workers, and when they enter into, perform, change, cancel or terminate labour contracts. In other words, as long as the employer is within the territory, the Labour Contract Law applies, regardless of whether its nationality is foreign or Chinese, and regardless of whether the worker is Chinese or foreign, and likewise regardless of whether the place where the labour contract is entered into, performed, altered, cancelled or terminated is at home or abroad.

According to the Social Insurance Law, workers "shall" participate in social insurance, such as pension insurance, medical insurance, industrial injury insurance, unemployment insurance, maternity insurance and so forth, and the employer and the employee shall pay jointly or the employer shall pay separately. Therefore, whether or not to pay social security is not a matter of negotiation between the employer and the employee, but an obligation stipulated by law.

For foreign employees, Article 97 of the Social Insurance Law stipulates: "Foreigners who are employed within China shall participate in social insurance in accordance with the provisions of this Law."

The Ministry of Human Resources and Social Security also issued the "Interim Measures for Foreigners Employed in China to Participate in Social Insurance" in 2011, which clearly stipulates that:, Enterprises, institutions, social organizations, private non enterprise units, foundations, law firms, accounting firms and other organizations registered or registered in accordance with the law within China (hereinafter referred to as employers) Foreigners recruited in accordance with the law shall participate in employees' basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance in accordance with the law, and the employer and the individual shall pay social insurance premiums in accordance with regulations Employers who hire foreigners should register for social insurance within 30 days from the date of obtaining their employment documents.

Therefore, in principle, both employers and foreign employees should pay various social insurances in accordance with regulations.

The following are the specific documents required for enrolment:

For foreigners joining the insurance for the first time, the employer should bring the relevant materials and go to the social security organisation in the place of joining the insurance to apply for the insurance for them.

Foreigners to participate in social security materials:

1、Passport of the person himself/herself.

2. Foreigner's work permit.

3. Residence permit for foreigners.

4. Personal Information Registration Form for Social Insurance.

5. Form for Increase of Social Insurance Participants.

6、Picture of the person himself/herself; and

7、Other relevant supporting documents.

Note: All the above documents must be provided in original and copies (copies must be stamped with the official seal of the organisation).