Dec. 2023 - New process of the social insurance declaration and payment in Shanghai and Beijing

New Process

The method of social insurance declaration and payment will be changed from automatic payment deduction to manual declaration and manual payment process at the tax bureau.

The following two operations related to social insurance are involved to this new process:  

• Monthly social insurance declaration and payment
• Yearly social contribution base adjustment

Social insurance mainly includes below:

• Pension insurance
• Medical insurance (including maternity insurance)
• Work-Injury insurance
• Unemployment insurance

Starting date

• Shanghai has started this new process from December 1, 2023
• Beijing will start from January 1, 2024

Declaration method

Enterprise can perform these two operations mentioned in above via below channels:

• E-tax bureau
• Client platform of social insurance management
• Tax service hall

It is important to ensure that the social contribution handlers complete the proper payment process on the above-mentioned platform on a monthly basis.

Timeline

• Payments need to be done before the 15th of the following month for enterprises in Shanghai
• Payments need to be done between the 10th and 25th of the following month for enterprises in Beijing

Point of attention

• Ensure that the payment process has been completed (no automatic withdraw as before).
• No need to report to the tax bureau if an employee’s social contribution base for 2023 has been renewed in July.
• But for newly added or adjusted employee’s social contribution base within this social insurance year, it should be reported to the tax bureau.
• If an enterprise needs to pay the social insurances for the period of before December 2023, it also needs social contribution center to determine the amounts of payable before making the payment to tax bureau.
• Below operations still need to be handled by social contribution center:
  • Social insurance registration
  • Social insurance rights record
  • Social insurance treatment approval

We would like to recommend that enterprises double check with their HR agent on how to deal with the changes in this new process.

We will keep you posted if there is any updating in other cities.

Should you have any questions or need our help, please don’t hesitate to contact us.

Reference:

l   State Administration of Taxation Shanghai Taxation Bureau, Shanghai Finance Bureau, Shanghai Human Resources and Social Security Bureau, People's Bank of China Shanghai Branch, Shanghai Medical Security Bureau [2023] No.2: Notice on Optimizing and Adjusting the Process of Declaration and Payment of Social Insurance Premiums (link here in Chinese)

l   State Administration of Taxation Beijing Taxation Bureau, Beijing Finance Bureau, Beijing Human Resources and Social Security Bureau, People's Bank of China Beijing Branch, Beijing Medical Security Bureau [2023] No.5: Notice on Optimizing and Adjusting the Process of Declaration and Payment of Social Insurance Premiums (link here in Chinese).