Following Beijing, the labour authority in Chengdu, the capital city of Sichuan Province, issued a circular ("Chengdu Circular") for implementation of the Interim Measures on Participation in PRC Social Insurance of Foreigners Employed in China (the "New Rules") in this western-southern city of China.
One notable thing of the Chengdu Circular is that it requires contributions to be paid not only for foreigners, but also for Hong Kong, Macau and Taiwan residents ("HMT Residents", who enter and exit the mainland using a Home Return Permit rather than a foreign passport) legally employed in Chengdu, although the HMT Residents are expressly exempted from the New Rules.
Under the Chengdu circular, as long as a foreigner or a HMT Resident has obtained his/her PRC work permit from the Chengdu labour authority, he/she should be brought into the local social insurance scheme, regardless of whether he/she is under a local employment contract or secondment arrangement.
Under the Chengdu Circular, the mandatory contribution covers not only the five categories of insurance (i.e. pension, medical care, work-related injury, unemployment and maternity insurance) required by the New Rules, but also a supplemental catastrophic medical insurance. While it is silent as to how much contributions must be paid, the Chengdu Circular clarifies the procedures and documents required for such contribution. It seems that the mechanism necessary for collecting contributions is also in place in Chengdu.
The Chengdu Circular is stipulated to be effective from 15 October 2011.
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