Six Cases of Social Insurance Participation by Hong Kong, Macao and Taiwan Personnel in the Mainland

On October 25, 2018, the Ministry of Human Resources and Social Security issued the Interim Measures for the Participation of Taiwan Residents of Hong Kong in the Mainland (Mainland) in the Social Insurance (Draft for Soliciting Opinions) There are six cases in which Hong Kong, Macao and Taiwan residents participate in social insurance in the Mainland.

I. Residents of Hong Kong, Macao and Taiwan for employment in the Mainland

1. Residents from Hong Kong, Macao and Taiwan hired by organizations such as enterprises, institutions, social organizations, social service institutions, foundations, law firms, accounting firms and other organizations registered or registered according to law in the Mainland (Mainland), as well as individual industrial and commercial households with employees (hereinafter referred to as employers) Shall participate in the basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance according to law, and the employing units and themselves shall pay social insurance premiums in accordance with relevant provisions.  

In other words, Hong Kong, Macao and Taiwan residents who have established labour relations with employers in the Mainland must take part in Five Risks in accordance with the law.

2. Residents of Hong Kong, Macao and Taiwan who engage in individual industrial and commercial operation in the mainland (mainland) according to law may participate in the basic old-age insurance and basic medical insurance for employees by referring to the relevant provisions of the place of registration.

3. Residents of Hong Kong, Macao and Taiwan who are flexible in employment in the Mainland and have handled residence permits for residents of Hong Kong, Macao and Taiwan may participate in the basic old-age insurance and basic medical insurance for employees by referring to the relevant provisions of their place of residence.  

4. Residents from Hong Kong, Macao and Taiwan who have reached the legal retirement age in the Mainland (Mainland) when they are employed in the Mainland (Mainland) may participate in the basic medical insurance for urban and rural residents in their place of residence.

II. Non-employed residents from Hong Kong, Macao and Taiwan in the Mainland

5. Those who are not employed in Hong Kong, Macao or Taiwan who reside in the Mainland (Mainland) and handle residence permits for residents of Hong Kong, Macao or Taiwan may participate in basic endowment insurance for urban and rural residents and basic medical insurance for urban and rural residents at their place of residence.  

6. University students from Hong Kong, Macao and Taiwan studying in the Mainland (Mainland) shall voluntarily participate in the basic medical insurance for urban and rural residents of the places where higher education institutions are located in accordance with the territorial principle.

Appendix:

Interim Measures for Hong Kong, Macao and Taiwan Residents to Participate in Social Insurance in the Mainland (Mainland) (Consultation Draft)

Article 1 [Purposes and Basis] For the purpose of safeguarding the lawful rights and interests of Chinese citizens and Taiwan residents of Hong Kong, Macao and Taiwan residents who are employed, residing or studying in the Mainland (Mainland), to participate in social insurance and enjoy social insurance treatment according to law, To strengthen the administration of social insurance, these Measures are formulated in accordance with the Social Insurance Law of the People's Republic of China and other provisions.  

Article 2 [Scope of Application] Enterprises, institutions, social organizations, social service institutions, foundations, law firms, accounting firms and other organizations legally registered or registered in the Mainland (Mainland), as well as Hong Kong, Macao and Taiwan residents employed by employers according to law (hereinafter referred to as "employers" ) Shall participate in the basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance according to law, and the employing units and themselves shall pay social insurance premiums in accordance with relevant provisions.  

Residents of Hong Kong, Macao and Taiwan engaged in individual industrial and commercial operations in the Mainland (mainland) according to law may participate in the basic old-age insurance and basic medical insurance for employees with reference to the relevant provisions of the place of registration. Residents of Hong Kong, Macao and Taiwan who have flexible employment in the Mainland and have obtained residence permits for residents of Hong Kong, Macao and Taiwan may participate in the basic old-age insurance and basic medical insurance for employees by reference to the relevant provisions of the place of residence.  

Residents from Hong Kong, Macao and Taiwan who have reached the legal retirement age in the Mainland (mainland) when they are employed may participate in the basic medical insurance for urban and rural residents in their place of residence.  

Residents from Hong Kong, Macao and Taiwan who reside in the Mainland (mainland China) and handle residence permits for residents from Hong Kong, Macao and Taiwan may participate in basic endowment insurance for urban and rural residents and basic medical insurance for urban and rural residents at their place of residence.  

University students from Hong Kong, Macao and Taiwan studying in the Mainland (mainland) shall voluntarily participate in the basic medical insurance for urban and rural residents in the locality of institutions of higher education in accordance with the territorial principle.  

Article 3 [Registration of Social Insurance] Where an employer hires any resident of Hong Kong, Macao or Taiwan according to law, it shall go through social insurance registration formalities for him with a valid certificate of the resident of Hong Kong, Macao or Taiwan, a labor contract or a contract of employment, and other certification materials.  

Residents of Hong Kong, Macao and Taiwan engaged in individual industrial and commercial operation and flexible employment in the Mainland (mainland) according to law shall undergo social insurance registration in accordance with the relevant provisions of the place of registration (residence).  

Residents of Hong Kong, Macao and Taiwan who have handled residence permits for residents of Hong Kong, Macao and Taiwan and meet the conditions for participating in basic endowment insurance for urban and rural residents and basic medical insurance for urban and rural residents in the Mainland (mainland) shall apply for social insurance registration at their place of residence on the strength of their residence permits.  

Article 4 [Issuance of Social Security Cards] The various business processes of social insurance for residents of Hong Kong, Macao and Taiwan shall be consistent with those for residents of the Mainland (Mainland). Social insurance agencies shall, in accordance with the Rules for the Establishment of Social Security Numbers of Taiwan Residents in Hong Kong and Macao, establish social security numbers for Hong Kong, Macao and Taiwan residents, and issue social security cards to the People's Republic of China.  

Article 5 [Treatment] Residents of Hong Kong, Macao and Taiwan participating in social insurance who meet the conditions shall enjoy social insurance treatment in accordance with the law.  

When the residents of Hong Kong, Macao and Taiwan participating in the basic old-age insurance reach the statutory retirement age, if the accumulative payment is less than 15 years, the payment may be extended to 15 years. Social Insurance Law before the implementation of the insurance, the extension of five years after the payment is still less than 15 years, a one-time payment may be made to the full 15 years.  

Residents of Hong Kong, Macao and Taiwan participating in the basic endowment insurance for urban and rural residents who meet the conditions for receiving the treatment shall receive the old-age insurance treatment for urban and rural residents at their place of residence in accordance with the relevant provisions. If the accumulative payment is less than 15 years when the age of entitlement is reached, the payment may be extended or paid in accordance with the relevant provisions of the place of residence.  

Residents of Hong Kong, Macao and Taiwan participating in the basic medical insurance of urban and rural residents shall pay the same amount of money according to the same standards as residents of cities and towns in their respective areas of overall planning, and shall enjoy the same basic medical insurance treatment.  

Article 6 [Treatment of Social Insurance Relationship Outside the Mainland (Mainland)] Residents of Hong Kong, Macao and Taiwan who leave the Mainland (Mainland) before they have reached the prescribed conditions for receiving pensions, Its social insurance personal account is kept, come to the mainland (mainland) to take up employment or residence again, the payment period is accumulated; If the applicant terminates the social insurance relationship upon written application, he may pay the amount of his personal account for social insurance in one lump sum.  

If a former resident of the Mainland (mainland) of Hong Kong, Macao or Taiwan chooses to retain the social insurance relationship when he leaves the Mainland (mainland), the original period of contribution shall be counted together when he returns to the Mainland (mainland) to reside, find employment and participate in the insurance. If the applicant has chosen to terminate the social insurance relationship when he leaves the Mainland (mainland), the original period of contribution shall not be counted together.  

Article 7 [Transfer of Cross-Regional Social Insurance Relations] When residents of Hong Kong, Macao and Taiwan participating in social insurance go through social insurance transfer in the mainland (mainland) cross-region, they shall comply with the relevant provisions of the State when they go through the social insurance transfer of social insurance relations. Those who have already received pension insurance benefits will no longer go through the formalities of transfer and renewal of old-age insurance relations.  

When the residents of Hong Kong, Macao and Taiwan participating in the basic old-age insurance of the staff and workers reach the conditions for receiving the benefits, they will be able to move across the overall planning areas, If the accumulative years of payment are less than 10 years in each participating area, the place where the longest years of payment are taken shall be responsible for collecting endowment insurance relations and corresponding funds, handling the procedure for receiving benefits and paying endowment insurance benefits.  

Cross-area Floating Employment of Residents of Hong Kong, Macao and Taiwan Participating in Basic Pension Insurance for Employees, Where the accumulated contributions are less than 15 years upon reaching the legal retirement age, the case shall be handled in accordance with Article 5, paragraph 2, of these Measures after determining the place of continuing contributions in accordance with the provisions of paragraph 2 of this Article on the place of entitlement.  

Article 8 [Certification of Entitlement to Treatment] Residents of Hong Kong, Macao and Taiwan who live in Hong Kong, Macao and Taiwan and enjoy the long-term treatment of basic pension and industrial injury insurance on a monthly basis shall apply for the qualification certification of treatment in accordance with the provisions of the social insurance agencies.  

Article 9 [Financial Subsidies] The financial departments at all levels shall grant subsidies to the persons from Hong Kong, Macao and Taiwan participating in the basic old-age insurance and the basic medical insurance for urban and rural residents (excluding university students from Hong Kong, Macao and Taiwan) in the mainland (mainland) according to the same standards as the urban residents in the overall planning areas.  

The policies on subsidizing students from Hong Kong, Macao and Taiwan to participate in the basic medical insurance for urban and rural residents shall be implemented in accordance with the relevant provisions by the public finance at all levels.  

Article 10 [Dispute Relief] Any resident of Hong Kong, Macao and Taiwan participating in social insurance according to law and an employer who has disputes over social insurance may apply for mediation, arbitration or bring a lawsuit according to law. Where an employer infringes upon its social insurance rights and interests, a resident of Hong Kong, Macao or Taiwan may also request the social insurance administrative department or the collection agency of social insurance premiums to handle the matter according to law.

Article 11 [Dual Participation] Local Social Insurance in Hong Kong, Macao and Taiwan, Residents from Hong Kong, Macao and Taiwan who continue to maintain social insurance relations may, on the strength of a certificate issued by the relevant authorized institution, not participate in endowment insurance and unemployment insurance in the mainland (mainland).  

Article 12 [Policy Convergence and Standardization] Where the mainland (mainland) and the relevant institutions in Hong Kong, Macao and Taiwan have made specific arrangements on social insurance matters, the relevant provisions shall apply.  

Article 13 [Supervision and Inspection] The social insurance administrative department shall, in accordance with the provisions of the Social Insurance Law, supervise and inspect the participation of Hong Kong, Macao and Taiwan personnel in social insurance. Where an employer fails to go through the social insurance registration formalities for the persons from Hong Kong, Macao and Taiwan who are recruited according to law or fails to pay social insurance premiums for them according to law, such provisions as the Social Insurance Law and other laws, administrative regulations and other relevant rules shall be handled.  

Article 14 The term "valid certificates of Hong Kong, Macao and Taiwan residents" as mentioned in the present Measures refers to the Permit for Travel of Hong Kong, Macao and Taiwan Residents, the five-year Permit for Travel of Taiwan Residents to and from the Mainland and the Residence Permit for Hong Kong, Macao and Taiwan.  

Article 15 [Time of Implementation] These Measures shall come into force as of the first day of this year.