Shanghai could be delaying the introduction of a controversial new social insurance scheme to appease foreign workers and businesses, local reports suggest.
On October 15 2011, legislation came into effect which requires all foreign workers, and the firms which employ them, to pay a proportion of their salary to the Chinese government.
The tax, which can be up to 11 per cent for employees and 37 per cent for employers, is split between five separate insurance funds, covering pensions, health care, unemployment, maternity and work-related injuries.
The South China Morning Post has reported however that while officials in Beijing have drawn up guidelines as to exactly how the money should be paid into pension funds, Shanghai labour authorities have not yet done the same. Compulsory arrangements for the other insurance programmes also appear to have not yet been finalised.
According to the newspaper, company executives close to the regulators believe that Shanghai has deliberately “slowed down the compilation of the guidelines” in response to anger about the change.
The tax has proved unpopular among foreign staff because they believe they will not benefit from the money they have paid in; many expats, for example, do not use China's state-run health care facilities, and they are expected to leave the country if they become unemployed. It has also concerned businesses, as the cost of employing foreigners in China will significantly increase.
A spokesperson for the Shanghai office of Paul Hastings LLP, confirmed that Shanghai had not yet mandated that expats enroll in all five social insurance programmes, though she added that many districts permitted them to contribute voluntarily to some.
“It appears that Shanghai is not yet ready to accept foreigners into all five schemes, [and] the government has not released an official announcement or reason as to why there is a delay or as to when foreigners can expect to have to enroll,” she said. “Most companies did not budget for the additional expense in 2011, and they have already enrolled their expats into the home country pension and international medical plans.
“As soon as the national government mandates that all localities comply with the national regulations, then Shanghai will follow suit and mandate that all companies enroll all of their foreigners. We expect this to take place by the end of the first quarter of 2012.”
A Shanghai-based expat and CEO of a company based in China, said that the scheme seemed to be “an initiative that may have been announced by Beijing's central government without due consideration or consultation with the various regional governments, and as a result there has been a mixed reaction with some regions adopting it immediately, some regions planning to adopt it in due course and back date it to the announcement date last year, and others seeking to delay its implementation.
“If Shanghai is pushing back, it is primarily due to the fact that it is the international commercial capital of China and as such has the highest number of foreign employers and employees. It therefore has the most to lose from any exodus of expats, whose employers are no longer able to justify the costs of employing foreigners in key roles. “
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Showing posts with label Expats in China. Show all posts
Showing posts with label Expats in China. Show all posts
17 January 2012
28 November 2011
New study of expats in China underway
A student of anthropology from New Zealand is spending a year in Shanghai, China, to study expats.
The doctoral student previously studied the behaviour of anti capitalists in New Zealand and says there are similarities between the two groups. And will look at everything relating to the expat life including what furniture they buy, their social life and what they eat.
‘They are both examples of urban ethnography, and they both deal with marginal identities. Expats in China are a marginal identity. They’re used to being in the mainstream and suddenly thrust into a marginal position in society. A privileged marginal position, but it’s marginal nonetheless,’ he explained.
He will look at everything relating to the expat life including what furniture they buy, their social life and what they eat.
Foote believes that by observing the expat community he will get a far better idea of who they are and what their values are, more so than any survey as people can easily give answers that they think the survey wants and even lie.
Foote, who arrived in August, will spend the first six months of his research period simply living the life of an expat in Shanghai, informally observing expats, making friends, catching up on the gossip and working out how the community ticks. Then he will conduct a series of formal interviews with expats to answer his key questions about community and identity.
I’m looking at how expats construct community, and why community is more important here than it would be at home. I’m also looking at the construction of a new identity in China, how being in China influences your construction of identity, and the role of community in that,’ he explained.
A key area he hopes to examine is that of wives who are sometimes referred to as the ‘trailing wives’ as they follow their husbands around the globe. He wants to find out if they are reluctant to move to China or find it stressful living in the city.
‘Back home, we’re more receptive to new ideas and experiences because we don’t feel they will threaten our identities. Whereas in this situation, the boundaries around our identity close down because they’re constantly being contested. We’re constantly having to face things that are outside of our comfort zone,’ Foote said.
‘And we still make choices about what we accept, but those are much more conscious choices, like okay, I like this piece of Chinese culture, so I’ll let it through,’ he added.
An example he says is an expat housewife buying a Chinese bowl to show that she is embracing her new country but that bowl might not be Chinese at all but made in Singapore to a Japanese design and is actually something that is rejected by modern Chinese people who would rather buy something from IKEA.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
The doctoral student previously studied the behaviour of anti capitalists in New Zealand and says there are similarities between the two groups. And will look at everything relating to the expat life including what furniture they buy, their social life and what they eat.
‘They are both examples of urban ethnography, and they both deal with marginal identities. Expats in China are a marginal identity. They’re used to being in the mainstream and suddenly thrust into a marginal position in society. A privileged marginal position, but it’s marginal nonetheless,’ he explained.
He will look at everything relating to the expat life including what furniture they buy, their social life and what they eat.
Foote believes that by observing the expat community he will get a far better idea of who they are and what their values are, more so than any survey as people can easily give answers that they think the survey wants and even lie.
Foote, who arrived in August, will spend the first six months of his research period simply living the life of an expat in Shanghai, informally observing expats, making friends, catching up on the gossip and working out how the community ticks. Then he will conduct a series of formal interviews with expats to answer his key questions about community and identity.
I’m looking at how expats construct community, and why community is more important here than it would be at home. I’m also looking at the construction of a new identity in China, how being in China influences your construction of identity, and the role of community in that,’ he explained.
A key area he hopes to examine is that of wives who are sometimes referred to as the ‘trailing wives’ as they follow their husbands around the globe. He wants to find out if they are reluctant to move to China or find it stressful living in the city.
‘Back home, we’re more receptive to new ideas and experiences because we don’t feel they will threaten our identities. Whereas in this situation, the boundaries around our identity close down because they’re constantly being contested. We’re constantly having to face things that are outside of our comfort zone,’ Foote said.
‘And we still make choices about what we accept, but those are much more conscious choices, like okay, I like this piece of Chinese culture, so I’ll let it through,’ he added.
An example he says is an expat housewife buying a Chinese bowl to show that she is embracing her new country but that bowl might not be Chinese at all but made in Singapore to a Japanese design and is actually something that is rejected by modern Chinese people who would rather buy something from IKEA.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
4 November 2011
Shanghai launches expat recruitment drive
China has developed a five-year plan to turn Shanghai into an international financial hub, relying on a foreign recruitment drive to increase its financial sector workforce by 40 per cent.
Shanghai has long-held ambitions to create a finance district capable of rivalling the likes of New York, London and neighbouring Hong Kong but has struggled with finding enough skilled financial professionals, especially high-level managers and sector specialists.
The news comes at the same time as economists forecast a loss of 27,000 jobs in London's Square Mile by the end of 2011.
According to the "five-year plan for human resources development in Shanghai's financial sector" released this week, China's second biggest city aims to take on 90,000 financial employees, 70 per cent of whom would have a BA degree degree and 15 per cent an MA degree.
This would mean that by 2015 Shanghai would have a total number of 320,000 employees working in finance, if things go to plan. As things stands, less than two per cent of Shanghai's total workforce work in finance, compared to 10 per cent in New York. An improved medical care system, social insurance, and children's education services have been built into the plan in a bid to lure expats who would have previously favoured Singapore or Hong Kong.
A British Expat, who has been running his own education company, in China since 2003 said: "If it has been decreed by the government it will probably get done.
"As China drives towards an economy fuelled by domestic consumption, then they will have the opportunity to put in place huge incentives to make things work for firms that are keeping the money onshore.
"Logistically, Hong Kong was the gateway to China but now China is open, it’s almost superfluous and only has the advantage of the legal system left over from the UK."
Shanghai's income tax rates appear to present the main stumbling block: they are as high as 45 per cent in certain cases. Compared to Hong's maximum of 15 per cent and Singapore's 20 per cent, it means exceedingly generous expat packages will be required to coax financiers across the waters.
Coupled with this is new legislation that will require expat workers and their employers to pay into China's social welfare pot, although it is yet to be made clear exactly how much of their salaries they'll be required to hand over.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Shanghai has long-held ambitions to create a finance district capable of rivalling the likes of New York, London and neighbouring Hong Kong but has struggled with finding enough skilled financial professionals, especially high-level managers and sector specialists.
The news comes at the same time as economists forecast a loss of 27,000 jobs in London's Square Mile by the end of 2011.
According to the "five-year plan for human resources development in Shanghai's financial sector" released this week, China's second biggest city aims to take on 90,000 financial employees, 70 per cent of whom would have a BA degree degree and 15 per cent an MA degree.
This would mean that by 2015 Shanghai would have a total number of 320,000 employees working in finance, if things go to plan. As things stands, less than two per cent of Shanghai's total workforce work in finance, compared to 10 per cent in New York. An improved medical care system, social insurance, and children's education services have been built into the plan in a bid to lure expats who would have previously favoured Singapore or Hong Kong.
A British Expat, who has been running his own education company, in China since 2003 said: "If it has been decreed by the government it will probably get done.
"As China drives towards an economy fuelled by domestic consumption, then they will have the opportunity to put in place huge incentives to make things work for firms that are keeping the money onshore.
"Logistically, Hong Kong was the gateway to China but now China is open, it’s almost superfluous and only has the advantage of the legal system left over from the UK."
Shanghai's income tax rates appear to present the main stumbling block: they are as high as 45 per cent in certain cases. Compared to Hong's maximum of 15 per cent and Singapore's 20 per cent, it means exceedingly generous expat packages will be required to coax financiers across the waters.
Coupled with this is new legislation that will require expat workers and their employers to pay into China's social welfare pot, although it is yet to be made clear exactly how much of their salaries they'll be required to hand over.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
26 October 2011
Lack of clarity for expats in China around social insurance payments
New laws forcing expat workers and their employers to contribute into China’s social welfare scheme are causing confusion among those expected to pay.
On October 15, legislation came into effect making it compulsory for foreign workers and the companies that employ them to pay a portion of their salary to the Chinese government.
But the hundreds of thousands of individuals affected by the tax-grab still don’t know when payments are due to be made and how the new scheme will be implemented. Typically, when a new Chinese law becomes effective implementation rules are issued shortly afterwards explaining how the new law will work.
However, these rules are not likely to be issued until the end of November and employers are in the dark as to what they will be liable for. The level of contributions is expected to average 11 per cent for employees and 37 per cent for employers. The money will go towards benefits such as pension provision, medical insurance and unemployment benefit.
There are further complications, as the payments aren’t calculated on a unified national basis but vary from region to region. For example, Beijing-based employers will pay 33 per cent while Shanghai-based ones will pay 37 per cent.
There are also local differences on which authorities are removing a salary cap on how much employers will have to contribute for high-earning staff.
Confusion also arises from conflicting reports as to when the payments will be backdated to and how long employers have to make these first contributions. It has been suggested by a quasi-government agency in Beijing (FESCO) that payments will be backdated to July and should be collected by the end of the year.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
On October 15, legislation came into effect making it compulsory for foreign workers and the companies that employ them to pay a portion of their salary to the Chinese government.
But the hundreds of thousands of individuals affected by the tax-grab still don’t know when payments are due to be made and how the new scheme will be implemented. Typically, when a new Chinese law becomes effective implementation rules are issued shortly afterwards explaining how the new law will work.
However, these rules are not likely to be issued until the end of November and employers are in the dark as to what they will be liable for. The level of contributions is expected to average 11 per cent for employees and 37 per cent for employers. The money will go towards benefits such as pension provision, medical insurance and unemployment benefit.
There are further complications, as the payments aren’t calculated on a unified national basis but vary from region to region. For example, Beijing-based employers will pay 33 per cent while Shanghai-based ones will pay 37 per cent.
There are also local differences on which authorities are removing a salary cap on how much employers will have to contribute for high-earning staff.
Confusion also arises from conflicting reports as to when the payments will be backdated to and how long employers have to make these first contributions. It has been suggested by a quasi-government agency in Beijing (FESCO) that payments will be backdated to July and should be collected by the end of the year.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
18 October 2011
Number of expatriates on the increase
More people head to China seeking out job opportunities as Western economies suffer hardship. An increasing number of foreigners are being attracted by China's prosperous economy and have come to work in the country.
Figures released by the Ministry of Human Resources and Social Security showed that 231,700 foreigners were employed in China at the end of 2010, compared with 223,000 in 2009.
Foreigners are finding jobs in China on the back of its strong economy, which is performing vastly better than that of the United States or Europe, suggests a spokesperson for a leading Consulting firm in China.
"This year, China's average gross domestic product increase is about 8 to 10 percent. This has created more opportunities, especially within the financial services, pharmaceutics as well as the retail industry,".
"The country provides an abundance of bigger career platforms and opportunities. We have witnessed both international investment companies and local Chinese companies focusing on expansion plans within the past decade. Besides the strong need for international talent to grow their businesses in China, they also require top-tier candidates for their businesses in international markets."
The talent consultant added there was a rising trend for local Chinese companies capable and willing to offer international compensation packages and benefits that are targeted for expatriates working in China.
The spokesperson went on to point out that managing skilled people from other cultures posed a special challenge to companies because it is essential to be fair and culturally sensitive to both nationals and expatriates, especially given that talent management is the top priority for most chief executive officers today.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
Figures released by the Ministry of Human Resources and Social Security showed that 231,700 foreigners were employed in China at the end of 2010, compared with 223,000 in 2009.
Foreigners are finding jobs in China on the back of its strong economy, which is performing vastly better than that of the United States or Europe, suggests a spokesperson for a leading Consulting firm in China.
"This year, China's average gross domestic product increase is about 8 to 10 percent. This has created more opportunities, especially within the financial services, pharmaceutics as well as the retail industry,".
"The country provides an abundance of bigger career platforms and opportunities. We have witnessed both international investment companies and local Chinese companies focusing on expansion plans within the past decade. Besides the strong need for international talent to grow their businesses in China, they also require top-tier candidates for their businesses in international markets."
The talent consultant added there was a rising trend for local Chinese companies capable and willing to offer international compensation packages and benefits that are targeted for expatriates working in China.
The spokesperson went on to point out that managing skilled people from other cultures posed a special challenge to companies because it is essential to be fair and culturally sensitive to both nationals and expatriates, especially given that talent management is the top priority for most chief executive officers today.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
19 September 2011
China to introduce expat social insurance tax
China may have dented its attractiveness as a destination for expats after announcing a social insurance tax on foreign workers.
From October 15, expats working in mainland China will be forced to pay 11 per cent of their salaries to the government in exchange for access to benefits such as pension coverage and medical insurance.
While employees will see a significant chunk of their tax-home pay disappear, their employers are also being hit by the new tax, as companies are forced to contribute a further 37 per cent of the foreign staff’s salaries.
The move could discourage multinationals from sending foreign workers to China in the future, while employees will be concerned about another raid on their salaries. Income tax in some cities in China is already charged at 45 per cent at the top tier.
Given China’s hunger for foreign talent, especially in cities such as Shanghai, it has been quick to promote the benefits for foreign workers.
The government states that expats will be able to enjoy five different programmes – pension provision, unemployment benefit, occupational injury compensation, medical cover and pregnancy insurance.
But some expats have questioned the relevance of these perks, as many already enjoy them as employee benefits. Ben Warner, who works for a multinational based in Shanghai, said: “Like many other expats, I already have more than adequate medical coverage from my employer, so for me it makes no sense to pay this tax. I’d rather keep the money than pay it to the government.”
And the American Chamber of Commerce in the People’s Republic of China has questioned the compulsory pension payments. A spokesman commented: “Foreign employees often work in China for short periods of time. China’s pension plan, however, requires that all foreign employees must participate in the pension plan for at least 15 years before they can draw on the pension. Such requirement is not practical for foreign employees.”
He added that it was also unclear what happens to any accrued pension once an expat returns to their home country.
Other countries allow foreign workers to opt-out of local social insurance payments if they are contributing into a similar scheme in their home country. British expats are allowed to continue paying National Insurance Contributions while living and working overseas to qualify for a UK state pension in retirement.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
From October 15, expats working in mainland China will be forced to pay 11 per cent of their salaries to the government in exchange for access to benefits such as pension coverage and medical insurance.
While employees will see a significant chunk of their tax-home pay disappear, their employers are also being hit by the new tax, as companies are forced to contribute a further 37 per cent of the foreign staff’s salaries.
The move could discourage multinationals from sending foreign workers to China in the future, while employees will be concerned about another raid on their salaries. Income tax in some cities in China is already charged at 45 per cent at the top tier.
Given China’s hunger for foreign talent, especially in cities such as Shanghai, it has been quick to promote the benefits for foreign workers.
The government states that expats will be able to enjoy five different programmes – pension provision, unemployment benefit, occupational injury compensation, medical cover and pregnancy insurance.
But some expats have questioned the relevance of these perks, as many already enjoy them as employee benefits. Ben Warner, who works for a multinational based in Shanghai, said: “Like many other expats, I already have more than adequate medical coverage from my employer, so for me it makes no sense to pay this tax. I’d rather keep the money than pay it to the government.”
And the American Chamber of Commerce in the People’s Republic of China has questioned the compulsory pension payments. A spokesman commented: “Foreign employees often work in China for short periods of time. China’s pension plan, however, requires that all foreign employees must participate in the pension plan for at least 15 years before they can draw on the pension. Such requirement is not practical for foreign employees.”
He added that it was also unclear what happens to any accrued pension once an expat returns to their home country.
Other countries allow foreign workers to opt-out of local social insurance payments if they are contributing into a similar scheme in their home country. British expats are allowed to continue paying National Insurance Contributions while living and working overseas to qualify for a UK state pension in retirement.
When you are working or living abroad, or have plans of relocating into another country, it is very important that you protect you and your family’s health and their wellness.
Expatriates make sure you are covered for International Medical Insurance, April Medibroker assists & advises clients living or working abroad to both choose & place the right international Health and Medical insurance products, to suit their needs & budget.
April Medibroker is here to help you - from the initial advice on what expatriate health insurance policy to buy, through to any assistance that you may need in the future. Our staff are only a phone call or email away. Whether you need changes to cover or payment, need help with a claim or have questions about your international medical insurance policy we will gladly help.
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