Social insurance in Shanghai for Australians

Short answer: if you're employed in Shanghai, you and your employer pay into Chinese social insurance, Australia has no social security agreement with China to get you out of it, and when you leave you can take your personal pension account balance as a lump sum.

The short version

Foreigners legally employed in China must join five insurances: pension, medical, work injury, unemployment and maternity [1].
In Shanghai the employee pays 8% for pension, 2% for medical and 0.5% for unemployment, on a salary base capped at RMB 37,731 a month from July 2026 [2][3].
China has social security agreements with 13 countries, and Australia isn't one of them. There's no certificate of coverage to exempt Australians [1][6][7].
Leave China before retirement age and you can close your account and take your individual pension account balance as a lump sum [1].
The housing provident fund is separate. Foreigners who've finished work and left China can withdraw their balance in Shanghai, usually within three working days of a complete application [4].

The five insurances, and the housing fund

Chinese social insurance isn't one fund like Medicare plus super. It's five schemes paid through your employer, plus a housing savings fund on the side.

Foreigners legally employed by companies or organisations registered in China must be enrolled. That includes people on an overseas contract who've been assigned to a Chinese branch or representative office [1]. Your employer has to register you within 30 days of getting your work documents [1].

Here's how it splits in Shanghai for 2026 [2][3]:

Scheme	Employer pays	You pay	What it does
Basic pension	16%	8%	Builds a pooled fund and your own individual account
Basic medical (incl. maternity)	9%	2%	Covers part of your costs in the public system
Unemployment	0.5%	0.5%	Unemployment benefits
Work injury	0.2%–1.9% by industry	0%	Workplace injuries
Housing provident fund	5%, 6% or 7% (matched)	Same as employer	Savings for housing, refundable when you leave

(Rates from the Shanghai government and KaizenCPA's 2026 base notice [2][3].)

The contribution base

Rates apply to a contribution base, which is generally your average monthly salary from the previous year, kept within the city's limits [3]. For 1 July 2026 to 30 June 2027, Shanghai's limits are [3]:

Upper limit: RMB 37,731 a month, three times the city's 2025 average monthly wage of RMB 12,577.
Lower limit: RMB 7,546 a month for social insurance, and RMB 2,740 for the housing fund.

The limits reset each July, often backdated, so don't be surprised by a catch-up deduction in September [3].

A worked example

Say you earn RMB 50,000 a month, which is above the cap, so your base is RMB 37,731. Using the rates above:

You pay 10.5% (8% + 2% + 0.5%) on social insurance, about RMB 3,960 a month.
Your employer pays at least 25.7% (16% + 9% + 0.5% + work injury), about RMB 9,700 a month or more.
Housing fund at 7% would be about RMB 2,640 each from you and your employer.

Because of the cap, the percentage bite on a big expat salary is much smaller than on a local wage. Your income tax is a separate deduction; see our income tax guide.

Why there's no Australia–China agreement

Australians often assume there's a deal like the ones Australia has with Japan or South Korea. There isn't.

China has signed social security agreements with 13 countries: Germany, South Korea, Denmark, Finland, Canada, Switzerland, the Netherlands, France, Spain, Luxembourg, Japan, Serbia and Kyrgyzstan. As of August 2026, all but France were in force [1]. Australia isn't on the list.

On the Australian side, the Department of Social Services lists Australia's current agreements, and China isn't among them [7]. The ATO says a certificate of coverage, the document that lets a seconded worker stay in the home system only, is available only for countries with a bilateral social security agreement [6].

What that means in practice:

Hired locally in Shanghai? You're in the Chinese system like everyone else [1].
Seconded by an Australian employer? You can't get an Australian certificate of coverage for China [6]. If your work is in China and your employer is registered there, Chinese contributions apply, and your Australian employer may still have super guarantee obligations under Australian rules. Ask payroll to confirm both before you go.
From an agreement country as well? If you hold a second passport, for example German or Japanese, an exemption might be possible under that country's agreement. These are limited to specific schemes and groups, the employer must apply, and a coverage certificate from home is required [1][8].
Thinking about the Age Pension? Australia's agreements let years in a partner country count toward the Age Pension. With no China agreement, your Shanghai years can't be added in that way.

What you can get back when you leave

This is the bit Aussies most often miss, and it can be a decent chunk of money.

Your pension account

Your 8% pension contribution goes into an individual account. If you leave China before Chinese pension age, you have two options [1]:

Keep the account. Your contribution years still count if you come back to work in China later.
Close it. Apply in writing to end your social insurance relationship and receive your individual account balance as a lump sum.

You only get a Chinese pension if you reach the pension age with at least 15 years of contributions, rising to 20 years in stages from 1 January 2030 [1]. Most Australians on a three-year posting won't get near that, so the lump sum is the usual choice. Only your individual account comes back, not the employer's pooled share; SmartShanghai's guide warns you'll get back "a portion" of the total paid [5].

How to claim it

Check you were enrolled. Ask HR for proof that social insurance was paid for you. Only contributions actually made can be claimed [5].
Get your separation certificate. You need a certificate showing your employment has ended, in Chinese and stamped. If it's in English, get a translation from an authorised agency with its stamp [5].
Go to your district Social Security Center. Each district has a branch of the Shanghai Social Insurance Administration Center [5]. Take your passport and any extra documents they ask for; the 12345 hotline can tell you what's current.
Use a Chinese bank account. Payment goes to your Chinese account, so don't close it the day you resign.
Allow time. The hotline told SmartShanghai about 30 days [5]. Start the process well before your flight home.

Your housing fund

If your employer enrolled you in the housing provident fund, Shanghai lets foreigners who've ended their employment and left the country withdraw the balance, as long as it hasn't been used to repay a home loan [4]. You need your passport, proof that the employment has ended and, ideally, a Chinese debit card in your name. Apply in person at a China Construction Bank housing fund branch or a Shanghai Provident Fund Management office. Complete applications take no more than three working days [4].

Medical insurance: what it covers and what it doesn't

Your social medical insurance links to the public hospital system. It pays part of the cost of public outpatient and inpatient care under local rules, and you pay the rest. Most international clinics and VIP wings sit outside it or are only partly covered, which is why most expat packages add private international insurance.

There's no Reciprocal Health Care Agreement between Australia and China, so Medicare won't help you in Shanghai. If you return to Australia to live, you can usually re-enrol in Medicare; see Medicare when you live abroad.

Mistakes we see Aussies make

Assuming an agreement exists. It doesn't. Budget for Chinese contributions on top of anything in Australia.
Leaving without claiming. Your pension lump sum and housing fund balance won't chase you to Adelaide.
Closing your Chinese bank account too early. Refunds need it [4].
Not checking payslips. Make sure your base matches your salary and the July update has been applied [3].
Losing your separation certificate. You'll need it for the pension claim [5].

Swap notes on payroll, refunds and which district office moves fastest in Cooee China, our Facebook group for Australians in China (join here).

Social insurance in Shanghai: why Australians pay in, and what you get back