Shanghai Pension Scheme Delay

Expats in Shanghai will now have to wait before being able to contribute towards local pension schemes

London, UK (Pryce Warner International) January 10th, 2012 – The local government in Shanghai have delayed introducing new rules that would permit Expats to contribute to local social security based pensions.

The delay is reportedly out of fear of upsetting investors.

In July of last year the Chinese government announced plans to allow foreign workers to be able to contribute towards local pensions schemes from October. However, despite being three months past the start date, the Chinese government have so far only released provisional details on the scheme and no payments have begun.

shanghai

At present foreign workers in China are unable to claim state benefits as their work visas are assigned based on the specific job of the individual, and they would therefore immediately become void if an individual stopped working.

Officials in Beijing have now begun to form new measures on how social security funds can be allocated to the pension accounts of foreign workers. In Shanghai however, this process has yet to begin.

Some have suggested that the Shanghai government has yet to introduce the plans as they are under pressure from foreign businesses that wish to stop the new pension schemes. This is because they would reportedly involve heavy new costs for the companies. Local labour authorities counter this by saying that the delay is merely due difficulties in setting up a secure payment procedure.

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By Aneil Fatania
Financial Editor
Pryce Warner International Group
For any corrections of factual information contained within our news items please contact our editor.
Email: af@prycewarner.com
Skype: newsdesk-pwi
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