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The Embassy of Finland informs - Finland proposes negotiations on social security agreement to China
Published: Tue / December 13 / 2011
The Finnish government has proposed to the Chinese government that Finland and China enter into negotiations to conclude a bilateral agreement on social security. The proposal was made on the initiative of the competent Finnish authority, the Ministry of Social Affairs and Health. Finnish companies operating in China have expressed their wish for such an agreement to be negotiated.
The agreement to be negotiated would aim to ensure that both employees seconded from Finland to China and employees seconded from China to Finland would be exempted from the old age pension fees of the country to which they are seconded to work. They would thus avoid paying duplicate contributions and their pension security would remain in the country from which they are seconded.
An agreement on social security would make a positive contribution to the competitiveness of Finland and would significantly improve the situation of Finnish companies and employees in China. The agreement would be especially significant due to the new social insurance law of China, in force since July 2011. According to the new law, foreign employees working in China for more than 6 months have to be registered in the Chinese social insurance system.
Germany is so far the only European country having concluded an agreement on social insurance with China. Many other countries have begun or plan to begin negotiations on such an agreement with China.
More information:
Deputy Director General Carin Lindqvist-Virtanen, tel. +358 9 160 73870, e-mail firstname.surname@stm.fi
Ministerial Counsellor Marja-Terttu Mäkiranta, tel +358 9 160 73877, e-mail firstname.surname@stm.fi
As a kind reminder: Finnish companies can contact the Embassy and Consulates-General in case they encounter problems related to the measures by the Chinese authorities. You can find the contact persons at http://www.finland.cn/public/default.aspx?nodeid=36573&contentlan=1&culture=fi-FI
In company direct business related things you may be in contact with Finpro offices in China and Finland http://www.finpro.fi/finpro-maailmalla/kiina