If you are working in China, you may have already heard that starting from September 1, 2025, new social security rules will take effect. The most important provision is that “any agreement to voluntarily waive social security is invalid.” In other words, any arrangement between an employer and an employee—whether written, verbal, or a unilateral statement by the employee—agreeing not to contribute to social security will be considered legally void. If an employer fails to pay social security contributions after the new regulation takes effect, employees will have the legal right to terminate their labor contract on this basis and demand economic compensation. Employers, in turn, will be required to make up missed contributions and may also face late payment penalties and compensation liabilities.

Against this backdrop, the issue of social security is especially relevant to foreign nationals working in China. With the country’s economic rise, an increasing number of expatriates are choosing to pursue careers in China. While adapting to life and work, they must also navigate the realities of China’s social security system, which covers five major areas: pension, medical care, unemployment, work-related injury, and maternity. For Chinese citizens, participation is mandatory. For foreign workers, however, the situation has long been more complex.

Under existing laws and a regulation introduced in 2011, foreigners employed in China are, in principle, required to participate in the social security system, with contributions shared between employer and employee. In practice, however, enforcement has varied. Some major cities, such as Shanghai, have made foreign participation voluntary, while many second- and third-tier cities have continued to enforce mandatory contributions. In addition, if a foreign worker’s home country has signed a bilateral social security exemption agreement with China, they may be exempted from some or all contributions. With the new rule, however, the landscape changes: for both foreign employees and employers, any agreement to waive social security obligations will be invalid. This means that even if a foreign employee signs a declaration stating they “voluntarily give up” social security, it cannot serve as a legal basis to avoid contributions.

For foreign workers who do contribute, there are clear benefits. They are entitled to many of the same protections as Chinese citizens, including reimbursement of medical expenses, compensation for workplace injuries, maternity benefits, and unemployment subsidies. If contributions meet the required number of years, they may even qualify for pensions upon retirement in China. Participation also enhances equality in the workplace and strengthens employees’ sense of security and belonging.

At the same time, there are drawbacks. Social security contributions reduce employees’ take-home pay and impose a significant financial burden on employers. For expatriates on short-term assignments, the long-term benefits are often difficult to realize. Pension eligibility requires at least 15 years of contributions, a threshold that many foreign employees will not reach. Furthermore, health insurance and unemployment benefits are generally restricted to use within China, creating challenges for those who eventually return to their home countries. These limitations have led many expatriates to question the practical value of contributing to social security. Still, with the new regulation in place, the legal protection of these rights will be strengthened, particularly in areas such as medical coverage, work injury compensation, and pension accumulation, making the system more reliable for those who do participate.

In conclusion, once foreign workers contribute to China’s social security system, they are legally entitled to the same benefits as Chinese citizens. In practice, however, cross-border limitations mean that pensions, healthcare, and unemployment insurance are not always easily accessible. For expatriates planning a long-term career in China, participation can provide meaningful protection. For those on shorter assignments, social security is likely to remain more of a compliance requirement than a practical advantage.