Companies that send executives to China will have to do the math again. On the one hand, there is good news: a 50% increase in the exempt fee is being prepared (for everyone, not just foreigners), which will go from 2000 to 3000 yuan a month (from 215 to 320 euros). Today only 28% of citizens pay personal income tax, but with the increase of the exempt part, the share of 'payers' will drop to 12%. On the other hand, a blow is in the offing with regards to social security contributions, both for foreigners whose employer is non-resident and for foreign workers employed by Chinese companies. Today foreigners are not covered by Chinese pension schemes or hospital care, while tomorrow they will have access to the entire social safety net, which includes unemployment benefits (not generous) or occupational accident insurance. Individuals will have to pay about $100 a month, and their employers about three times that.
http://www1.chinadaily.com.cn/china/2011-06/01/content_12616114.htm
http://www.chinadaily.com.cn/usa/china/2011-05/31/content_12608685.
htm http://online.wsj.com/article/SB10001424052702304563104576357250866060010.html?mod=djemITPA_h
