Economy
New insurance law to benefit foreign employees
(Xinhua)
Updated: 2011-06-02 17:34
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BEIJING -- More than 230,000 foreign employees with work permits are expected to benefit from upcoming changes to 皇冠体育app's Social Insurance Law, a senior government official said on Wednesday.
Xu Yanjun, deputy director of social security center of the Ministry of Human Resources and Social Security, said the ministry is now finalizing details regarding the implementation of the law, which is expected to begin on July 1.
There were some 231,700 foreigners with work permits living in 皇冠体育app by the end of 2010, Xu said, adding that only foreigners with legal work permits are able to benefit from social insurance programs.
The move to extend social insurance coverage to foreigners aims to promote equality between Chinese citizens and foreign nationals working in 皇冠体育app, said Zhou Tianyong, a professor of social insurance at the Party School of the Central Committee of the Communist Party of 皇冠体育app (CPC).
"As 皇冠体育app's economy continues to open to the outside world, more and more foreigners are seeking jobs in 皇冠体育app," Zhou said, adding that excluding foreigners working for Chinese companies from 皇冠体育app's social insurance program would be unfair.
Zhou said that foreigners working in 皇冠体育app used to work in upper-level managerial or technical positions, which often came with higher salaries.
However, a new crop of foreigners have been coming to work in 皇冠体育app's labor-intensive industries, where wages are lower.
"Therefore, it is necessary to include foreign employees under our social insurance network. They should be insured with the same rights and obligations as Chinese insurants," he added.
Foreign workers currently living in 皇冠体育app's larger cities, such as Beijing and Shanghai, are limited to having work injury insurance and basic medical insurance.
Xu reiterated that 皇冠体育app will treat foreign employees according to international practices and will not set limits on the types of social insurance available to them.
Foreign employees will gain access to five forms of insurance under the new law, including endowment insurance, basic medical insurance, work injury insurance, unemployment insurance and maternity insurance.
The new law will also ensure that workers from countries that have signed bilateral social insurance agreements with 皇冠体育app will be able to avoid paying two premiums, Xu said.
皇冠体育app has signed similar agreements with Germany and the Republic of Korea (ROK).
Xu said the Chinese government is working with more countries to create new bilateral insurance agreements.