Chinese Employers Must Include Foreign Workers in Social Security

Towers Watson reports that effective October 15, 2011, both employers and employees will have to pay Chinese social security contributions, unless they are covered under a bilateral social security agreement between their home country and China. At present, only South Korea and Germany have concluded agreements with China, although other countries, including the U.S., are reportedly seeking to negotiate agreements.   

Participation of foreign employees in the social security system will increase costs for employers, but due to the cap of social security contribution, the impact is not expected to be significant, according to the consultancy.