After the integration of the work permit and social insurance card, many people think they don’t need to apply for the work permit. However, this is a misunderstanding of this updates!
You may have already heard that, according to a notice issued by China’s Ministry of Human Resources and Social Security, starting from December 1, 2024, the foreign work permit will be integrated into the social insurance card. In other words, foreigners entering China will no longer need to apply for a physical Foreigner’s Work Permit Card. This integration will simplify the process by embedding the work permit information directly into the social insurance card, providing greater convenience for foreigners working and living in China.
We believe this is good news for foreigners who are investing or working in China, and you may have already seen many articles online discussing the impact and changes this integration will bring. However, many of these articles feature misleading or sensational headlines, or contain inaccurate information. In this blog, Hongda will clarify some of the common misconceptions you may encounter and provide you with more accurate explanations.
Misconception: Foreigners no longer need to apply for a work permit
Fact: If you have previously applied for a foreign work permit, you will remember receiving a physical card about the size of a bank card, which displayed various details related to your work position in China. However, starting from December 1, 2024, foreigners working in China will no longer need to obtain a physical work permit card. After entering China, you can download the electronic social insurance card app, register using your name, work permit number, or social insurance number, and receive an electronic social insurance card containing your work permit information.
This DOES NOT mean the work permit application system has been abolished, or that you no longer need to apply for a foreign work permit. You still need to apply, renew, change, or cancel your work permit through your employer via the Foreigners’ Work Permit System. In special cases, you may also be required to submit documents yourself.
If you want to learn how to use the electronic social insurance card app, you can view the guide issued by China’s Ministry of Human Resources and Social Security by clicking on the following link:
User Guide for Electronic Social Insurance Cards.
In addition, when using the electronic social insurance card app, you must log in with a Chinese phone number that has undergone real-name verification in China. If you have not yet obtained a Chinese phone number, you will need to get one in order to use the app properly.
Please note that this system was only introduced on December 1, 2024, and as of the publication of this blog, only two weeks have passed. Therefore, the guide provided is an overall national guideline, and local governments may not have had time to optimize it for their specific situations. The actual experience you have may differ from what is presented in the guide. We will continue to monitor and update you on the specific policies for your city.
How should I handle my work permit application?
As the new policy may affect the process of your work permit application, we have outlined the following steps for different situations to help you continue with your work permit and the application for the electronic social insurance card. Please note that these procedures are based on the official reply from Hongda’s headquarters in Shenzhen, Guangdong Province. If you are applying for a work permit in another city, the process may differ.
1. I have already received a physical work permit card.
For foreigners who have already received their work permit (physical card), your work permit remains valid. Currently, there is no mandatory requirement to apply for the electronic social insurance card while your original work permit remains valid. However, when you need to renew your work permit, you will need to follow the current policy at that time and may be required to apply for the electronic social insurance card.
2. I have submitted my work permit application but have not yet received the Notification Letter.
After the policy update, the format of the work permit notification will change. The new format will include a QR code. This change will not affect your subsequent procedures. You will only need to follow the usual process to apply for a Z visa at a Chinese embassy or consulate after receiving the work permit notification. Upon entering China, you can then apply for your electronic social insurance card.
3. I have received the work permit Notification Letter but have not yet applied for the Z visa or residence permit in China.
If you have received the old version of the work permit notification, you will not be able to use it to apply for a visa or residence permit. In this case, you or your employer will need to apply for the reissuance of the new version of the work permit notification in the management system. Once you receive the new version, you can continue with your visa and residence permit procedures.
Will this Policy Change Affect my Social Insurance in China?
Following this change, the work permit information of foreign employees will be integrated and linked with their social security information in China. This means that once foreign employees obtain a work permit in China, they will be protected under Chinese labor laws. Additionally, when applying for visa extensions or other procedures, the employee’s social security payment records may become an important consideration for processing work permit-related matters. This also means that purchasing social insurance for foreign employees has become a mandatory compliance requirement for employers.
If you are currently operating a company in China and employing foreign staff, it is crucial to pay attention to the compliance requirements that this change brings for both you and your employees. Purchasing social insurance for your foreign employees will become a fundamental requirement for them to legally work in China on a long-term basis. If you have just hired foreign employees, you should ensure that their social insurance payments are arranged as soon as possible. In this regard, we recommend Hongda’s payroll and social insurance management services, allowing you to delegate the handling of your employees’ social insurance matters to Hongda.
Conclusion
We hope that by reading this blog, you now understand the impact of these changes. Please remember that this simplification does not mean the cancellation of the foreign work permit system. In order to work legally in China, you still need to apply for a work permit in advance. Otherwise, you may face legal penalties. If you have any further questions, please feel free to contact Hongda!
