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Insurance for foreigners to be simplified

By Chen Xin (China Daily)

08:17, June 05, 2012

International discussions on ending double contributions under way

Social insurance payments, for foreigners in China and Chinese citizens working overseas, will be simplified under international agreements currently being discussed, a senior social security official said.

"We've held three rounds of talks with Japan and one round with France, and we have also held initial discussions with Sweden and Belgium," said Xu Yanjun, deputy director of the Social Insurance Administration under the Ministry of Human Resources and Social Security, in an exclusive interview with China Daily.

Xu said 11 countries, including Finland, Singapore, Denmark, Spain and Switzerland, have expressed their willingness to negotiate with China since a regulation, which stipulates that all foreigners working in China will be covered by social security, took effect on Oct 15, 2011.

China's Social Insurance Law allows foreign workers to enjoy retirement, medical, work-related injury, unemployment and maternity insurance similar to those for Chinese citizens.

Workers and employers in China collectively pay endowment, medical and unemployment insurance but employers are responsible for paying for work-related injury insurance and maternity insurance.

Germany and South Korea have signed reciprocal agreements with China.

The agreement between China and Germany exempts workers from the other country from paying endowment and unemployment insurance.

The deal with South Korea exempts workers from paying endowment insurance, Xu said.

"The two agreements have benefited 4,500 Germans and 2,000 Koreans working in China, as well as 10,700 Chinese working in those two countries," he said.

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