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Employing foreigners about to get more expensive

Draft provisions on foreigner social insurance enrolment released

Issue: July/August 2011

Companies in China employing foreigners should prepare for a cost increase once the new social insurance law goes into effect.

On June 10 2011, China’s Ministry of Human Resources and Social Security released the Tentative Measures for the Enrollment in Social Insurance of Foreigners Employed in China (Draft for Comments) (在中国境内就业的外国人参加社会保险暂行办法(征求意见稿)) (Draft measures) for public comment. The comment solicitation period ended on June 17 2011.

The Draft measures were based on the PRC Social Insurance Law (中华人民共和国社会保险法) that is set to come into effect on July 1 2011.

Article 97 of the Social Insurance Law has caused some concern that foreign workers and their employers will be levied a tax as China brings foreigners under the umbrella of its...

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