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Confusion over social insurance contributions

(Global Times)

14:14, November 09, 2011

A foreigner looks at employment information during a job fair in Beijing. Foreign employees must pay social security in China, but detailed policies are yet to come. Photo: CFP

Local employers have started to register their foreign employees to make social insurance payments through local human resources companies, however businesses and foreigners alike are still waiting for authorities to release concrete information about payment levels and benefits.

For foreigners working in China and those who employ them, a draft regulation of Social Insurance Law requires "social insurance contributions," including to a basic pension fund, and for medical, unemployment, work-related injury and maternity insurances.

Beijing Youth Daily reported that the maximum end of the sliding scale is capped at three times the average wage of the area people work in, which is 12,603 yuan ($1,985) in Beijing. Foreigners earning more than this every month would be considered to earn a high salary.

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