由Vincent · Cheung

昨晚，是在MSN聊天与我的客户的我，贸易的WFOE (完全外国拥有的企业)并网是由我当前进行。 他雇用一个21岁助理协助他在每日事理。 我的客户及早解雇了她两三天，为她的不负责任和懒惰和寻找另一个助理，因此他问我，如果我偶然知道任何人。 我介绍了打算放弃她的出席工作的女孩，并且他们在MSN后似乎有一次好交谈。

女孩牵涉到必须的社会保险事。 问题是，因为贸易的WFOE仍然在并网之下，她想要知道她是否可以仍然有五社会保险在一个期间几个月，在贸易的WFOE法律上建立之前。 很好，我认为它是一个问题在雇主和雇员之间，并且我不可能逐字地帮助。 如此我提醒了我的客户关于另外社会保险治疗反对地方上海人(谁有上海Hukou)和那些非地方性的职员。

我那么令人惊讶惊奇了，当我的客户告诉了我保险单往地方和非地方性的雇员现在被成一体了。 它感到笨拙，当您的客户告诉您某事时您应该告诉他们。 我什么都没有googled它，但得到了。 我称上海辛苦和社会保险局今晨咨询政策; 装载，那里最近根本是没有政策的变动。 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