July 30 2021

Changes on Expats’ Social Insurance in Shanghai

Source: Diacron Business Consulting - Shanghai office

We would like to inform you that the 2009 Shanghai Notice, which allows foreign employees to choose whether to contribute or not to the Social Insurance dues, will expire soon, on 15 August 2021.

According to the PRC Social Insurance Law announced in 2010, all employers and employees in China, including foreigners, are subject to Social Insurance dues. In particular, the rates for company and individual in Shanghai are as below:

  Company Individual
Endowment 16% 8%
Medical (including Maternity) 10.5% 2%
Unemployment 0.5% 0.5%
Injury 0.16% - 1.52% -

*The calculation base for the social insurance in Shanghai is announced on July 9th, 2021. The application of this new standard will start in July 2021.

  • The minimum calculation base is CNY 5,975/month and,
  • The maximum calculation base is CNY 31,014/month.

In Shanghai, this law is exempted by the 2009 Shanghai Notice, issued by the Municipal Human Resource and Social Security Bureau, saying that foreign employees may contribute to the Social Insurance. In practice, foreigners working in Shanghai are able to choose whether to contribute or not, reaching an agreement with the employer.

As mentioned, the expiration date of the notice is 15 August 2021, so far there is still not any new policy or other extension notice. This means that, after 15 August, unless further extended, the 2009 Shanghai Notice will not be applicable anymore and all employers and foreign employees in Shanghai will be obligated to the Social Insurance dues following the national PRC Social Insurance Law.