Understanding China’s social insurance for expats 2026
As one of the fastest growing economies, China introduced social insurance several decades ago to both local residents and foreign employees. In this article we will analyze what it consist of, how to enroll yourself on the program, what kind of contributions you should be expecting to make as well as most recent changes.
Key takeaways
- Foreign employees in China are generally required to participate in the social insurance system.
- Social insurance includes pension, medical, work injury, unemployment, and maternity insurance.
- Social insurance contributions are shared between the employee and employer as a %.
- For first time employeed China expats post 2025, your social insurance card is combined together with your work permit one.
- Medical part of social insurance can only give you access to government run hospitals. Some % copay of the medical bills might happen.
- Some exemptions may apply for certain visa types or bilateral agreements. For example if you pay social insurance back home, you may be exempt from paying it in China too.
Does China has universal social insurance?
China introduced universal social insurance system back in 2007. It stipulates that all employed staff are required to participate in the program, including foreign residents who are working in China. This includes pension, medical, and unemployment insurance. Having your own business in China does not mean you are exempt from paying social insurance.
Quite often expat pursue to buy additional private health insurance. Unsure what kind of cover you need? Refer to our guide here on most popular health insurance plans.
Do foreigners need to pay social insurance in China?
All foreign staff legally employed in China are required to participate in social insurance program within 30 days from the date of emplyment. This is governed by Social Insurance law of the People’s Republic in China articles 84, 86 and 97 respectively. Although, we do see many cases where such law is not being fully enforced and many companies still lack awareness on this matter.
As our friends from HRone point out, several of social insurance pillars will be charged from employer side, while some from employee’s.
How to calculate social contributions in China for expats?
There are numerous ways how you can claculate your social contributions in China as an expat. Easiest will be to use specially designed calculators. Example of one of the is below from China Briefing: https://www.china-briefing.com/news/china-individual-income-tax-social-insurance-calculator/
For more exact and accurate figures, you will need to consult with your finance people in the company. Usually enrollment on social insurances programme is a duty of an HR personell, but accounting 财务 can also often help with it.
Details of China’s social insurance for foreign employees
Let’s dive in the details of each of the social insurance pillars and what they all entail.
Medical part
The medical part of social insurance in China for expats provides access to healthcare services and medical treatment. This spans across both inpatient (hospitalization) as well as outpatient (clinical visits). However, the extent of coverage may vary by city and individual circumstances. Using social insurance will limit you to visiting public (government run) hospitals.
There are few private medical facilities that can actually use social insurance too. Example can be Jiahui hospital in Shanghai. Visiting this hospital can let you use your China social insurance to cover 10-30% of the medical bill, while rest you will need to pay yourself.
Another great example will be some clinics in Shenzhen such as Vista SK. In those you can even use social insurance to perform certain wellness tests, basically annual medical check up.
Pension part
The pension part of social insurance in China provides retirement benefits after years of contributing. Legally employed foreigners are typically required to participate and make contributions alongside their employers. Usually the rule is you can claim pension in China upon reaching retirement age in the country. You will also have to reach minimum of 15 years pension contributions beforehand. That it does not need to be continuous contributions but just an aggregate amount through your life until the retirement age.
Expats who dont plan on retiring in China can actually apply for withdrawing this part upon their relocation from China. This is handled by a local PSB office and apparently very fast, 2-3 working days only. Proof of permanent relocation outside of China will be necessary.
Unemployment insurance part
Unemployment insurance in China is part of the social insurance system that provides financial support to eligible workers who lose their jobs. Both Chinese employees and foreign workers with legal employment are required to contribute, helping them access unemployment benefits in case of involuntarily unemployment. However, in practice it possesses challenges to foreign individuals to claim such. All because for majority of us, our visa is tied to our work. Loosing one means another one will be revoked too.
Work-related injury insurance part
Primarily work injury insurance provides coverage and compensation for employees facing injuries or suffering health issues due to work-related incidents. This insurance covers medical expenses, disability benefits, and compensations. Worth mentioning, often there are restrictions before the benefits can kick in. For example, injury can only happen during working hours or at your work place.
Maternity insurance part
This part of social insurance will cover expenses associated with pre-natal and child delivery should female expat become pregnant. Keep in mind, you may also claim maternity leave after the delivery. During this your employer will still have to pay certain part of your salary. Typically maternity leave in China is around 150 days, but that may vary depending on the city you are in.
If you need help finding the right health insurance to cover the above benefits, get in touch.
FAQ
Is healthcare free in China for expats and tourists?
No, it is not. As an employed expat in China you can participate in natioinal healthcare program known as social insurance. This will give you free access to most of the medical care in the country. Tourists on the other hand dont have such right and have to bare all medical expenses on their own.
Can foreigners buy medicine in China?
Yes, foreigners residing in China as well as tourists can buy medicine at local pharmacies or hospitals of prescription is required. If you have health insurance, make sure to check value added services on your plan. Several major providers like Allianz and MSH offer free drug delivery programs. That is particulalrly useful for chronic medical conditions where medicine is needed regularly.
Are there English speaking hospitals in China?
There is a great number of private and international style clinics and hospitals across China. Especially if you are residing in Tier 1 cities like Beijing and Shanghai. Tier 2-3 cities may lack western style hospitals, however finding an outpatient clinic is usually not a problem. For full details on English speaking hospitals in China visit our article here.
Check out our YouTube channel for a video version of this article.