News
China’s new expat welfare rules cause confusion
13-12-2011
Businesses employing expats in China have expressed concern over new rules bringing foreigners into the social welfare system.
Under the scheme, companies must pay up to 37% of their expats’ salaries into the system; this change will affect more than 230,000 foreign workers in China.
While this arrangement is not unique to China, the country's visa rules mean that expats are unlikely to reap the benefits of their contributions. If a foreigner loses their job they lose the right to work, which makes it hard to see how they would claim social security benefits under the current system.
Chinese authorities claim that these inconsistencies will be addressed, but critics of the new rules claim that in the rush to pass the legislation, companies have been left in the dark over the logistics of the scheme, including how their employees will benefit.
Source article: http://www.guardian.co.uk/world/2011/nov/04/china-new-welfare-rules