China Retirement
China Retirement
I was curious about retirement if you work in China for 10 years. If I taught in China for 10 years and left to another country would I receive some sort of retirement money/month when I became the age that I can collect, which I believe is 60 now. I'm sure it won't be much, but still curious? Thanks
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eion_padraig
- Posts: 408
- Joined: Sat Dec 11, 2010 8:18 pm
Re: China Retirement
If you have been making payments into social insurance (some of it is for retirement, some of it is for local health insurance), you can withdraw that amount which is for retirement when you leave the country. This year the folks who are leaving the school are getting that money back. Initially our school was worried that they wouldn't actually be able to get it out, but that seems not to be a problem. It could end up being a fair bit after 10 years.
You'll need help from your school in getting this money back. I could imagine unscrupulous schools either not actually having paid the money or not giving you the full amount back.
Eion
You'll need help from your school in getting this money back. I could imagine unscrupulous schools either not actually having paid the money or not giving you the full amount back.
Eion
Re: China Retirement
I'm starting a job this year in China, and I know that I have to pay taxes, but I'm not sure if it's for the social insurance...
Response
You need to find out if youve just been paying taxes or if youve been paying social insurance as well. A lot of lower tier ISs just collect the taxes, or collect both those and social insurance but never make your contributions. You are going to have to find out.
You are not vested (eligible to collect benefits) unless you have contributed for 15 years or more, so you will not be able to receive a benefit after only 10 years. You contribute about 8% and your employer about 20%, after 15 years and you are vested, when you reach 60 they take your fund and divide it into 120 payments that is distributed to you over 10 years.
You can apply to have your contributions refunded, you will need your ISs or a legal firms assistance with this. A lot will again depend on what your actual contributions are.
You are not vested (eligible to collect benefits) unless you have contributed for 15 years or more, so you will not be able to receive a benefit after only 10 years. You contribute about 8% and your employer about 20%, after 15 years and you are vested, when you reach 60 they take your fund and divide it into 120 payments that is distributed to you over 10 years.
You can apply to have your contributions refunded, you will need your ISs or a legal firms assistance with this. A lot will again depend on what your actual contributions are.
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Helen Back
- Posts: 242
- Joined: Fri Dec 28, 2012 4:16 pm
Re: China Retirement
In some cities and provinces foreigners are not required to pay social insurance, so are not eligible for any payment. We looked into this in Shanghai last year. It turned out we hadn't paid anything, so weren't due anything.
Discussion
You should understand that many lower tier ISs will go to significant lengths to avoid the social insurance program for their ITs, it costs the IS and ownership 20% of salary in contributions which is essentially a 20% increase in salary. If you are making RMB25000/month than that 20% is another RMB5000 and an effective RMB30000 salary.
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Helen Back
- Posts: 242
- Joined: Fri Dec 28, 2012 4:16 pm
Re: China Retirement
Has anyone in a school in Shanghai ever received a refund for their social insurance contributions or been given paperwork indicating that they will be eligible for some kind of pension? I am casting this net out to anyone that reads this. If you live in Shanghai, or have lived in Shanghai, have you ever been made aware that you are eligible for any kind of refund/pension? Answers in the negative or positive welcomed. When I looked into this last year it seemed to be a city decision, not a school decision. I would like to clarify this.
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Helen Back
- Posts: 242
- Joined: Fri Dec 28, 2012 4:16 pm
Re: China Retirement
I'm not arguing with you, I would just like to clarify the information I garnered last year about Shanghai. I believe that in Shanghai it was a decision the city made, rather than individual schools. I'm also fairly sure that most large cosmopolitan metropolises with sizeable expat populations chose to do the same. Outside those centres, I have no idea.
Reply
@Helen Back
I understand, Im simply contributing that my understanding is that the large metro/cosmo cities in China (SHA, PEK, GZ) had decided at the metro (city level) to relegate it to the ISs discretion. This happened after China has redefined what an IS was/is and published new restrictions. If the IS was an independent DS that was hiring ITs then it would be more likely that the IS wouldnt have that discretion, whereas an IS that primarily served expats had the discretion.
I understand, Im simply contributing that my understanding is that the large metro/cosmo cities in China (SHA, PEK, GZ) had decided at the metro (city level) to relegate it to the ISs discretion. This happened after China has redefined what an IS was/is and published new restrictions. If the IS was an independent DS that was hiring ITs then it would be more likely that the IS wouldnt have that discretion, whereas an IS that primarily served expats had the discretion.