On April 1, 2014, the General Office of the Ministry of Human Resources and Social Security issued a notice to implement the Agreement on Social Security between the People's Republic of China and the Kingdom of Denmark, which came into force on May 14, 2014 ("Social Security Agreement").

According to the Social Security Agreement, Danish employees who are employed by a Danish employer and then seconded to China to work for less than three years can be exempted from making pension insurance contributions in China, and Chinese employees who are employed by a Chinese employer and then seconded to Denmark to work for less than five years can be exempted from making social pension contributions and labor market supplementary pension (Arbejdmarkedets Tillaegs Pension, "ATP") contributions in Denmark. While the Social Security Agreement is silent on whether Danish citizens locally hired in China may also qualify for the exemption, in practice if proof of participation in Denmark's pension system is provided, such employee may also be able to avoid making pension contributions in China depending on the position of local authorities. However, Danish employees working in China will still need to be enrolled in the other four types of social insurance provided by China's social insurance system.

This exemption will slightly alleviate the burden on employees seconded from Denmark and the host entities where they work. Before the conclusion of this agreement, China also signed similar social insurance exemption agreements with South Korea and Germany respectively.