China and France signed a social insurance agreement Monday that will exempt company employees assigned to work in each other's countries from the mandatory social insurance contributions.
Kong Changsheng, vice minister of China's Ministry of Human Resources and Social Security and French Foreign Minister Jean-Marc Ayrault inked the deal in Beijing.
Without the agreement, French citizens working in China have to participate in five insurance programs -- pension, medical, work-related injury, unemployment and maternity insurance, and both employee and employer must contribute to the social insurance premiums.
According to Chinese regulations, if a foreigner leaves China prior to reaching the statutory age for pension withdrawal, his or her social insurance personal account will be retained, and the contribution years will be calculated on a cumulative basis if he or she comes back to China to work again in the future.
The insurance premiums account for nearly 40 percent of a foreign employee's wage, but employees cannot receive pensions until they have paid premiums for a total of 15 years.
China has signed similar bilateral social insurance agreements with Germany, the Republic of Korea, Denmark, Finland, Canada, Switzerland and the Netherlands, in addition to France.
