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Q&A Regarding Agreement on Mutual Exemption of Social Security between China and Germany

Answer
To effectively solve the problem of double payment of social insurance premiums for personnel working in each other’s country, China and Germany formally signed the Social Security Agreement between the People’s Republic of China and the Federal Republic of Germany on July 12, 2001 (hereinafter referred to as Agreement). The Agreement officially entered into force on April 4, 2002. This article aims to solve frequently asked questions in the form of Q&A for clients’ reference.

Q:
Which type of insurance premiums is mutually exempted according to the Agreement?
A:
Statutory pension insurance premiums and unemployment insurance premiums (German calls Employment Promotion Fee).

Q:
Who can be exempted from paying relevant social insurance premiums in Germany?
A:
1. Dispatch personnel, which refer to staff of Chinese-funded companies, enterprises and institutions stationed in German offices and liaison agencies.
2. Subsidiary staff, which refer to staff of German subsidiaries of Chinese companies, enterprises, and institutions.
3. No employer's personnel, which refer to non-employed persons in China.
4. Crewman.
5. Personnel of diplomatic which refer to Chinese personnel employed by Chinese diplomatic missions in Germany and their staff.

Q:
Who can be exempted from paying relevant social insurance premiums in China?
A:
The conditions applicable to Germany who are exempted from paying social insurance premiums in China are the same as those applicable of Chinese working in Germany.

Q:
How long could the exemption period last from paying social insurance premiums?
A:
The maximum period for the first to fourth category of personnel to be exempted from payment of social insurance for the first time is 60 calendar months. If required by work, the exemption period can be extended to 96 calendar months after approval. Under special circumstances, a final exemption may be granted upon approval.
For the fifth category of personnel, the exemption period is unlimited upon application by both employers.

Q:
What materials need to be provided to apply for exemption from paying relevant social insurance premiums?
A:
Applicants need to submit the Certificate According to the Chinese-German Agreement On Social Security (hereinafter referred to as Certificate) to apply for exemption from paying corresponding social insurance premiums.

Q:
Can German personnel apply for exemption from paying relevant social insurance premiums in China if they cannot provide Certificate?
A:
No. For German personnel who cannot submit the Certificate in China, the local social insurance agencies should urge them to participate in China’s social insurance according to relevant regulations.

Q:
Apart from the statutory pension insurance premiums and unemployment insurance premiums, can other social insurances be exempted from payment for German personnel working in China?
A:
No. In addition to the statutory pension insurance premiums and unemployment insurance premiums as stipulated in the Agreement, German personnel in China should participate in other types of social insurance in China in accordance with relevant regulations.

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