Politics
18:23, 31-Oct-2016
China and France sign social insurance deal
Updated
10:21, 28-Jun-2018
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China and France signed a social insurance agreement on Monday, which will exempt company employees assigned to work in each other's countries from the mandatory social insurance contributions.
The deal was signed by Kong Changsheng, vice minister of China's Ministry of Human Resources and Social Security, and Jean-Marc Ayrault, French Foreign Minister.
Without the agreement, French citizens working in China have to participate in five insurance programs -- pension, medical, work-related injury, unemployment, and maternity insurance, and both employee and employer must contribute to the social insurance premiums.
According to Chinese regulations, if a foreign national leaves China prior to reaching the statutory age for pension withdrawal, his or her social insurance personal account will be retained, and the contribution years will be calculated on a cumulative basis if he or she comes back to China to work again in the future.
China has signed similar bilateral social insurance agreements with Germany, the Republic of Korea, Denmark, Finland, Canada, Switzerland and the Netherlands, in addition to France.
The insurance premiums account for nearly 40 percent of a foreign employee's wage, but employees cannot receive pensions until they have paid premiums for a total of 15 years.