CN – Integration of Work Permit and Social Security

In the People’s Republic of China (the “PRC” or “Mainland China”) a system integration is enabling work permit (“WP”) information to be embedded in non-Chinese nationals’ social security cards, which will result in a “One-Card” system to help enhance WP issuance processes and to further improve the work experience of non-Chinese nationals in Mainland China.

The Chinese Ministry of Human Resources and Social Security has recently issued a “Notice of the Ministry of Human Resources and Social Security on the Integration of Non-Chinese National’s Work Permit and Social Security Card” (Renshefa [2024] No.75), on digitalisation of the WP issuance process, replacing the physical WP card with an electronic/physical social security card through integration of the WP and the social security system, effective from 1 December 2024.

WHY THIS MATTERS

This integration of the WP and social security system will streamline processes and make the WP application/issuance processes more convenient for non-Chinese nationals upon arrival to Mainland China.

Global-mobility professionals and immigration advisers should be aware of the new processes and update their own operational procedures to follow the appropriate steps to obtain the new electronic social security card with the embedded WP. Communications should be issued to all appropriate stakeholders.

Highlights

Work Permit Issuance Processes

For new WP applicants, the issuance of the WP is being managed solely through the “Service System for Foreigners Working in China” online portal with effect from 1 December 2024, i.e., non-Chinese nationals will no longer be issued with a physical WP card.
For existing physical WP card holders, the card remains valid. The WP and social security card will be integrated upon a successful WP extension or WP amendment application.

Electronic Social Security Card

Non-Chinese nationals can download the electronic social security card App, fill in their personal details along with their WP number or social security number to complete the App registration/login. Upon verification, an electronic social security card will be issued with the WP information embedded.

Resident Permit (“RP”) Application

For RP applications, Z visa holders are only required to bring either their electronic social security card or Work Permit Notification Letter (“WPNL”) along with other required documentation to the Exit and Entry department of the public security bureau in their work location.

KPMG INSIGHTS

Various functional departments are actively working on systems upgrades following on from the release of the Notice, with the aim to further enhance relevant application/issuance processes for non-Chinese nationals upon their arrival to Mainland China.

The electronic social security card serves as a “carrier” of work permit information. With the government’s efforts on the system integration, information exchange and transparency across relevant functional departments should help further facilitate compliance management across functions.

If you have any questions on what the changes mean for you and your foreign-national employees in the PRC, how this will affect your current application process, and how you may need to adapt your procedures, it may be a good idea to consult with your usual immigration adviser or global-mobility professional, or a member of the KPMG GMS team in the People’s Republic of China (see the Contacts section).

Contacts

Michelle Zhou

Partner, Global Mobility Services

KPMG in China

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Nan Su

Senior Manager

KPMG in China

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Disclaimer

The information contained in this newsletter was submitted by the KPMG International member firm in the People’s Republic of China.

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People’s Republic of China – New “One-Card” System: Integration of Work Permit and Social Security Systems