Par Vincent Cheung

La nuit passée, j'étais sur MSN causant avec mon client, dont l'incorporation marchande de WFOE (complètement entreprise d'appartenance étrangère) est procèdent par moi actuellement. Il a loué un aide de 21 ans pour l'aider dans des affaires quotidiennes. Mon client l'a renvoyée un couple des jours tôt, pour son irresponsabilité et paresse, et cherche un autre aide, ainsi il m'a demandé si je m'avérais justement savoir quiconque. J'ai présenté une fille qui a l'intention de stopper son travail, et ils ont semblé avoir une bonne conversation sur MSN plus tard.

La fille a été concernée par la chose obligatoire de sécurité sociale. Le problème est, puisque le WFOE marchand est toujours sous l'incorporation, elle veut savoir si elle peut immobile avoir aux cinq sécurités sociales pendant la première plusieurs mois avant que le WFOE marchand soit légalement établi. Bien, je pense que c'est une question entre l'employeur et l'employé, et je littéralement ne peux pas aider. Ainsi j'ai juste rappelé mon client au sujet du traitement différent de sécurité sociale contre les habitants locaux de Changhaï (qui ont Changhaï Hukou) et ces personnel non-local.

J'ai été tellement astonishingly étonné que quand mon client m'a dit que la police d'assurances d'assurance vers les employés locaux et non-local ont été unifiées maintenant. Il se sent maladroit quand votre client te dit quelque chose que vous êtes censé leur dire. Je googled le, mais n'ai obtenu rien. J'ai appelé Changhaï bureau de sécurité sociale de travail et pour consulter la politique ce matin ; what a load off, there is no change of policy recently at all. My client was just misinformed.

Anyhow, I think it’s very important for me help my client get a profound and clear knowledge about the social insurance thing in Shanghai.

1. Mandatory Social For Local Shanghai Employees and Holders of “Introduced Talent Residence Certificate”
There are two types of mandatory social insurance in Shanghai, “city insurance” and “rural area insurance”. For both of the domestic and foreign invested companies in urban area, it’s mandatory for them to pay the “city insurance” for local Shanghai staff. The “five insurances” cover pension, medical, unemployment, industrial injury and maternity. Beware of that, you should even pay maternity insurance for male employees. The company is supposed to pay the insurance equal to 37% of the employee’s fist month salary (it’s the payment base of first year).

As a rule, the employee’s salary will rise year by year, then every year the payment base is going higher, and usually you should pay senior employees more, nevertheless, the payment base cannot exceed 7394 Yuan.

Besides, even a desperate graduate is willing to accept a 1,000 Yuan salary in the first month of trial period, it doesn’t mean you can merely pay him 370, because the lowest “payment base” you can go is 1437. For “city insurance”, the employees are also required to pay the insurance equal to 11% of the payment base.

Please take a look at below table for the five city insurances payment.

Types, Company Percentage, Employee Percentage
Pension 22% 8%
Medical 12% 2%
Unemployment 2% 1%
Industrial 0.5% 0%
Maternity 0.5% 0%

Usually, the company will deduct the money that’s supposed to be paid by the employees from the basic salary, and pay it to the social insurance center.

Some of the non-local employees who are holding “Shanghai Introduced Talent Residence Certificate” issued by Shanghai Human Resources Bureau. can also enjoy Shanghai’s “city insurance”.  However, it’s a bit complicated. There are a few regulations governing this, and those out-of-town employees should meet following requirements.

Take myself as an example. I’m from Zhejiang province, and how do I get one such certificate?

Firstly, graduated from “Benke” (本科) university. I’m not sure I can deliver “Benke” to you very clearly. There are five levels of high education schools, the top three levels are “Benke” university or colleges, which are regard to be better than the rest two types of schools offering professional and technical training courses.

I’m graduate from the Benke university, so I’m qualified in this regard.

Secondly, being hired by a company whose registered capital is equal to or over 1 Millions RMB (around 135,000 USD). Poor me! There is no possibility of me getting that certificate. I’m just working for a business consultancy. It’s insane to inject to 1 Million Yuan to set up a Chinese-owned consultancy company.

Suppose I could meet the second requirement, and I’m applying for the certificate now. There are two types of certificates: 1-year and 3-year. If I can get the 3-year one, then I don’t have to bother myself with renewing it every year. It depends on the points I have. How do they “grade” me then? It’s based on following factors: the qualification of the employer, the time I’ve stayed in Shanghai, whether I have my own house in Shanghai, whether I’m local spouse, etc.

Suppose I’m the 1-year certificate-holder now, and my certificate will be good for 3 months. If I’m hired by you, and your company’s registered capital is less than 135,000 USD, I can only enjoy the insurance for another three months, because I am currently unqualified to extend it.

I guess now you’ve got the idea about the certificate. I hope it helps you make the right decision when you are making the payment for the five mandatory insurance.

2. Comprehensive Insurance for Non-local Employees who don’t hold a “Introduced Talent Residence Certificate”
It’s very simple. Please pay 204 Yuan to those people on a monthly basis. Employees don’t have to pay a penny.

Vincent Cheung, Path to China