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Bilateral deals under wayfor expats’ social security

    CHINA is planning to negotiate with other countries and regions on bilateral social security agreements, which should mean foreign employees who pay contributions in their home countries do not have to do so again in China.

    A total of 15 rounds of negotiations with seven countries have been arranged this year, Hu Xiaoyi, vice minister of human resources and social security, said yesterday.

    The policies, processes and standards have been worked out for foreign workers to join China’s social security system, he said at a press conference in Beijing on the sidelines of the annual meeting of China’s top legislature. He said foreign workers joining China’s social security is a clear provision in the Law on Social Security introduced last July, and now the ministry and local governments are promoting the work steadily.

    China announced in July that foreign workers would have to contribute to its social security system, with individuals paying 10 percent and employers about 30 percent on the first 12,603 yuan (US$2,000) of monthly pay.

    The payments cover medical and unemployment insurance and pensions. However, the mechanism for tapping benefits is unclear, especially as foreigners that lose work visas must leave the country.

    Hu said the ministry has issued more than 200,000 work permits to foreigners, but the number of foreigners who have signed up to China’s social security system was still being counted.

    The social insurance program that took effect Oct. 15 last year allows foreigners with work permits in China to receive retirement, unemployment, medical, work injury and maternity benefits — the same as those for Chinese citizens.

    (SD-Xinhua)

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