1. The bottom line: lawful employment means mandatory enrolment
The currently effective Interim Measures for Social Insurance of Foreigners Employed in China, revised on 23 Dec 2024, make it clear that lawfully employed foreigners (holding a work permit/residence permit, or a permanent residence card) MUST join the five statutory schemes. It is not optional, and a privately signed "voluntary waiver" cannot override it.
The correct order: first check whether the person falls under China's employee social-insurance system (lawful employment + employment relationship), then whether an effective bilateral treaty exempts some schemes, and only then discuss contribution bases and exit handling.
2. The five schemes and who pays
Foreign employees are fully enrolled in five schemes: basic pension, basic medical, work injury, unemployment and maternity (maternity is merged with medical but benefits remain). Pension is shared by employer (~16%) and employee (8%); medical and unemployment are shared; work injury and maternity are employer-paid only.
Those seconded from an overseas employer to a China branch/representative office are covered by the domestic work unit. Bases, caps and rates follow the local employment-area rules, with the employer withholding and remitting.
3. Registration deadline and the social-security card integration
The employer must register the foreign employee for social insurance within 30 days of the employment permit, or face penalties under the Social Insurance Law.
From 1 Dec 2024, the work permit and social-security card are integrated: permit data loads onto the physical or e-social-security card, and newly arrived foreigners no longer get a separate physical work-permit card; applications, extensions and cancellations are online. This is an administrative upgrade linking "lawful employment" and "social services" — not a move to make insurance optional.
4. Bilateral treaty exemptions (only some schemes)
China has signed bilateral social-security treaties with Germany, Korea, Denmark, Finland, Canada, Switzerland, the Netherlands, Spain, Luxembourg, Japan, Serbia, Kyrgyzstan and France (12 in force; France signed but not yet effective). Nationals of treaty countries can apply, with their home-country certificate, to be exempted from the covered schemes — usually pension and unemployment.
Whether medical or injury insurance is also exempt depends on the specific treaty and local practice. Without the certificate and filing, it is not an exemption — it is simply non-payment.
5. What happens when you leave China
Pension: the individual account can be kept (years accumulate if you return) or, on written request to terminate, paid out as a lump sum; the employer-paid pooling portion is not refundable.
Medical: the individual account balance is settled per local rules. Work injury, unemployment and maternity generally have no exit refund.
Note: from 1 Jan 2030 the minimum contribution period for a pension gradually rises from 15 to 20 years. If you plan a long China career, cancelling the pension account on exit may not pay off.
6. Common misconceptions
“Shanghai lets you opt out”: a 2009 local stance in Shanghai ended long ago; the 2021 Shanghai notice (Hu Sheng Ren Yang [2021] No.358) confirmed insured employment for foreigners in the city.
“A signed waiver is enough”: invalid. Non- or under-payment draws a daily 0.05% late fee and, if overdue, a 1–3x fine on the owed amount.
“Paying at the minimum base is fine”: the base should reflect real wages; long-term minimum-base filing discounts pension/medical/unemployment benefits. Compare contract wage, payslip, bank flow, tax and social-base figures.
7. How it links to tax, CRS and the work visa
Social insurance presupposes lawful employment, whose first step is the [work permit and Z visa](/en/blog/foreigner-work-permit-z-visa/).
Social contributions and individual tax filings cross-check each other: an abnormally low base can trigger coordinated tax/social audits. Chinese tax residency turns on the 183-day rule (see our [tax & CRS guide](/en/blog/foreigner-tax-crs-china/)) and is independent of social insurance, but both feed the [CRS](/en/blog/foreigner-tax-crs-china/) compliance picture.
For private medical, critical-illness and investment products, see our [insurance & investment guide](/en/blog/foreigner-insurance-investment-china/) — social insurance is the mandatory base, commercial cover is the supplement.
FAQ
Must foreign employees pay social insurance?
Lawfully employed foreigners must in principle join the five schemes, paid by employer and employee. Only nationals of countries with an effective treaty may, with a home certificate, be exempt from the covered schemes (usually pension + unemployment).
Which countries have social-insurance exemptions?
In-force treaties cover Germany, Korea, Denmark, Finland, Canada, Switzerland, the Netherlands, Spain, Luxembourg, Japan, Serbia and Kyrgyzstan (France signed, not yet in force). Which schemes are exempt depends on the treaty and local practice.
Is a signed "voluntary waiver" valid?
No. Enrolment is a statutory duty and cannot be waived by agreement; non- or under-payment draws late fees and fines for the employer.
Can I get all my social insurance refunded when leaving?
Not all. The pension individual account can be kept or paid as a lump sum; the medical individual account is settled locally; work injury/unemployment/maternity have no exit refund; the employer pooling portion is not refundable.
How do PR holders or HK/Macau/Taiwan residents count?
PR card holders lawfully employed in China are also covered; HK/Macau/Taiwan residents working on the mainland join employee social insurance under dedicated notices.
What changed in the 2024 revision?
It integrated the work permit with the social-security card (no separate physical permit card), clarified number rules, strengthened employment–social-insurance data linkage, and kept the mandatory "employed = insured" stance.
How does social insurance relate to tax and CRS?
Social insurance presupposes lawful employment (see the work-permit guide); the contribution base cross-checks with tax filings, and anomalies trigger audits. Tax residency is the 183-day rule, independent of social insurance, but both inform the CRS profile.
