On 29 November 2019, the Ministry of Human Resources and Social Security Department and the National Medical Security Administration promulgated the Interim Provisions on Hong Kong, Macau and Taiwan Residents' Participation in China' Mainland's Social Insurance Scheme (the "Interim Provisions"), which will come into force from 1 January 2020. In terms of fundamental principles, the Interim Provisions clearly require that Hong Kong, Macau and Taiwan residents shall have the rights and perform the obligations equivalent to those of the residents in China's Mainland, so that Hong Kong, Macau and Taiwan residents are covered under the social insurance scheme of China's Mainland; with respect to the administrative formalities, Hong Kong, Macau and Taiwan residents are given more convenience by the Interim Provisions, so that they may better protect their social insurance benefits. Here follow five most important things to know about this Interim Provisions.

I. Categories of Hong Kong, Macau and Taiwan Residents and of Social Insurance

The Interim Provisions classify Hong Kong, Macau and Taiwan residents into the following categories: Hong Kong, Macau and Taiwan Residents working in China's Mainland, those operating self-owned business, those under flexible employment with resident permit, those unemployed with Hong Kong, Macau or Taiwan resident permit, and Hong Kong, Macau and Taiwan students studying in Mainland universities. The types of social insurance applicable differ among different categories of Hong Kong, Macau and Taiwan residents (see the form below).

Category of Hong Kong, Macau and Taiwan Residents Type of Social Insurance
Working in China's Mainland Employee basic pension insurance, basic medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance
Operating self-owned business in China's Mainland Employee basic pension insurance and basic medical insurance
Under flexible employment with resident permit Employee basic pension insurance and basic medical insurance
Unemployed with Hong Kong, Macau or Taiwan resident permit Urban and rural residents' basic pension insurance and basic medical insurance
Hong Kong, Macau and Taiwan students studying in Mainland universities Urban and rural residents' basic medical insurance

It should be noted that employers which hire Hong Kong, Macau and Taiwan residents in China's Mainland shall pay their social insurance premiums. Employers failing to register the Hong Kong, Macau and Taiwan residents they employ or engage under China's social insurance scheme or pay social insurance premiums for them according to the law shall take legal liabilities according to the Social Insurance Law, and other relevant laws, administrative regulations and rules.

II. Enjoyment of Social Insurance Benefits

The Interim Provisions provide that the Hong Kong, Macau and Taiwan residents having participated in China's social insurance scheme shall be entitled to social insurance benefits according to the law. The Interim Provisions also specify the enjoyment of social insurance benefits by certain special residents, such as, those who participated in pension insurance but years of participation fail to reach 15 years when they reach the age of enjoyment, and those who participated in basic medical insurance and then retired. Provisions regarding their enjoyment of social insurance benefits are basically identical with those applicable to China's Mainland residents. However, it should be noted that medical expenses incurred by Hong Kong, Macau and Taiwan residents participating in the basic medical insurance for overseas medical treatment shall not be covered and paid by the basic medical insurance fund.

III. Reservation and Termination of Social Insurance Relations

According to the Interims Provisions, where Hong Kong, Macau and Taiwan residents leave China's Mainland before they may draw their pension according to the law, their individual social insurance accounts shall be reserved; where they come back to work or reside in China's mainland and continue social insurance premiums, years of their social insurance premiums contribution shall be calculated accumulatively; where they apply for termination of their social insurance relations in writing and in person, the amount deposited in their individual social insurance accounts may be paid to them in an one-off manner.

The Interim Provisions also provide that where previous Mainland residents have obtained Hong Kong, Macau or Taiwan residential identity and choose to reserve their social insurance relations when leaving China's Mainland, years of their social insurance premiums contribution shall be calculated accumulatively when they come back to work or reside in China's Mainland and continue social insurance premiums; where such residents choose to terminate social insurance relations when leaving China's Mainland, years of their social insurance premiums contribution shall not be calculated accumulatively, but the amount deposited in their individual social insurance accounts may be paid to them in an one-off manner.

IV. Pension Insurance Transfer and Obtaining of Benefits for Trans-provincial Employment

The Interim Provisions require that Hong Kong, Macau or Taiwan residents having participated in employee basic pension insurance get employed across provinces, they shall transfer their basic social insurance relations. When they meet the conditions for drawing their social insurance benefits, they may do so by going through required formalities in the following regions:

  1. In case they have contributed social insurance premiums for ten years or more accumulatively in the region where their basic pension insurance relations are located, then such region;
  2. In case they have contributed social insurance premiums for less than ten years accumulatively in the region where their basic pension insurance relations are located, they shall transfer their basic social insurance relations to the last region where they have contributed social insurance premiums up to ten years and draw their insurance benefits there;
  3. In case they haven't contributed social insurance premiums for ten years accumulatively in any region, their basic social insurance relations shall be transferred to the region they have contributed social insurance premiums for the longest length of time and they shall draw their insurance benefits there;
  4. In case there are two or more regions of the same longest length of social insurance premiums contribution, their basic social insurance relations shall be transferred to the last region among them and they shall draw their insurance benefits there.

V. Avoidance of Repetitive Contribution

According to the Interim Provisions, Hong Kong, Macau or Taiwan residents who have participated in the local social insurance scheme of Hong Kong, Macau or Taiwan and reserved their social relations, with proof issued by competent authorities, are allowed not to participate in the pension and unemployment insurances in China's Mainland.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.