China and Netherlands agree social insurance dealSeptember 15 2016 by InsuranceAsia News Staff
Chinese and Dutch nationals sent to work in each other’s countries will soon be exempted from paying mandatory social insurance contributions following the signing of a social insurance agreement between the two nations.
Three rounds of negotiations since November 2014 have led to the signing of the deal in The Hague, said the China’s Ministry of Human Resources and Social Security.
The agreement will come into effect as soon as legalities are ironed out in the two countries. China has signed similar bilateral social insurance agreements with Germany, the Republic of Korea, Denmark, Finland, Canada and Switzerland, in addition to the Netherlands.
Before the agreement, Dutch nationals working in China have needed to participate in five insurance programmes, namely pension, medical, work-related injury, unemployment and maternity assistance.
The employee and the employer jointly contribute to the premiums.
The insurance premiums account for nearly 40% of a foreign employee’s salary, but employees cannot receive pensions until they have paid premiums for a total of 15 years.
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