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Government and ministries Media

Social security agreement with China into force in February 2017

Ministry of Social Affairs and Health
16.11.2016 12.08 | Published in English on 23.11.2016 at 7.48
Press release 203/2016

The bilateral social security agreement between Finland and China will affect the social security of persons moving between these two countries. The agreement will enter into force on 1 February 2017. The agreement concerns pensions and unemployment benefits.

The agreement includes provisions regarding so-called posted workers. A posted worker sent by a Finnish employer to China remains covered by the Finnish earnings-related pension legislation and unemployment insurance during his or her employment in China. The coverage applies for a period of five years, at the most.  The maximum period can be extended through an exemption procedure.  During that period, no pension or unemployment insurance contributions will be demanded in accordance with Chinese legislation. Instead, the Finnish employer and Finnish employee shall pay their fees to Finland in accordance with Finnish law. Double insurance payments will be avoided through the agreement.

Correspondingly, workers posted to Finland from China will remain covered by the Chinese system, and the Finnish earnings-related pension system or unemployment insurance will not affect them.

The agreement will also ensure the payment of earnings-related pensions from one contracting state to the other one if the pension recipient no longer lives in the state where the pension has been accrued.

A government decree on the agreement will be issued before the agreement enters into force.

Inquiries

Marja-Terttu Mäkiranta, Ministerial Counsellor/Legal Affairs, Ministry of Social Affairs and Health, tel. +358 295 163170, [email protected] (N.B. no Scandinavian letters å, ä or ö)

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