In the news: Expats avoid social insurance and KPMG turns over audit documents

Foreigners resist social insurance

China Daily ran a story that only 200,000 expatriates or 20% of foreigners working in China participate in the social security programmes. It has been two and half years since the PRC Social Insurance Law became effective and extended social insurance to foreigners. Pension, medical, unemployment, work injury and maternity are the five programmes foreigners are expected to participate in. Hu Xiaoyi, vice minister of human resources and social security, admitted that the 20% was a small number.

Source: China Daily

This comes as no surprise. Foreigners have been resisting social insurance contributions since the Law came out. Many feel that they will not be in China long enough to enjoy the benefits of paying into these schemes. In addition, only a handful of countries have signed social security agreements with China. This means that some foreigners who participate end up paying double in contributions. Foreigners have also experienced great difficulty using their health contributions at hospitals. This makes social insurance undesirable for most expatriates in China.