The Law on Foreigners’ Participation in Social Insurance in China Will Become Effective on Oct. 15, 2011

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The Interim Measures for the Participation in Social Insurance of Expatriates Employed in China (“Interim Measures”) was released by the Ministry of Human Resources and Social Security on Sept. 6, 2011. The Interim Measures will become effective on Oct. 15, 2011.

According to the Interim Measures, foreigners who are employed by any entity in China are required to participate in basic pension insurance, basis medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance. Employers and foreign employees must pay social insurance contributions in accordance with relevant regulations.

For foreign employees who enter into employment contracts with employers outside of China and are then dispatched to work in branch offices, representative offices or other entities registered or recorded in China, both the foreign employees and the branch offices’ representative offices or other entities in China are required to pay the social insurance contributions in accordance with relevant regulations.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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