On September 30, 2015, China and Switzerland signed a social security bilateral agreement (the “Agreement”).
Under the Agreement, when an enterprise in one country dispatches an employee to work in the other country, the dispatched employee and the dispatching enterprise are exempt from making social security contributions (pension and other compulsory insurance payments) in the other country.
The Agreement aims to avoid duplicate payments by employees and enterprises in the two countries, reducing the foreign investors’ operating costs so as to boost business between the two countries.
In addition to the Agreement signed with Switzerland, China has entered into bilateral agreements on social security with Canada, Denmark, Finland, Germany and South Korea, and is currently negotiating several social security agreements with other countries, including Spain.1
The Agreement will come into force after each country fulfills its domestic legal procedures.
Date of signing: September 30, 2015.