Recently, a couple of new Social Security Agreements have been signed between China and various Western countries as well as South Korea. This article will give you a brief introduction to the most important benefits and provisions.
A Social Security Agreement, also called Totalization Agreement, is a bilateral agreement that aims at eliminating the risk for expats to pay social insurance contributions in both China and his or her home country. Additionally, these agreements help cover the time gaps, which occur, when an employee works in another state than his home country, and are, therefore, vital to protect workers from facing shortfalls in pension benefits after retirement.
The Western countries with which China has recently concluded Social Security Agreements are Canada, Switzerland, Finland, Denmark, the Netherlands, Germany. In 2013, China also signed an agreement with South Korea.
When did they enter into force?
Below are listed the countries with which China has signed Totalization Agreements according to the inception date:
|Germany||4 April 2002|
|South Korea||16 January 2013|
|Denmark||14 May 2014|
|Canada||1 January 2017|
|Finland||1 February 2017|
|Switzerland||1 June 2017|
|Netherlands||1 September 2017|
Which insurance is covered?
The insurance schemes covered by the respective agreements can be seen below:
The agreements also stipulate the time period during which seconded personnel in China can be exempted from Social Insurance Contributions. The exact period for dispatched employees per country is:
|South Korea||5 years|
In some cases, the Totalization Agreements include also family members. Unless they themselves are employed or self-employed in China, the spouse and children benefit from the same regulations as seconded employees. The specific provisions are as follows:
|Switzerland||Children and Spouse|
|Netherlands||Children and Spouse|
|Denmark||Children and Spouse|
|South Korea||not mentioned|
Apart from the above-mentioned countries, France and Spain have also recently signed Totalization Agreements with China. Both agreements are not yet ratified.
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