Under a regulation which takes effect next month, residents of Hong Kong, Macau and Taiwan who sign local employment contracts on the mainland will be required to contribute to the mainland's social security fund.
As a result, mainland employers of a Hong Kong resident will have to pay 2,317 yuan (US$286) a month, and the employee 747 yuan if their monthly pay exceeds 7,000 yuan.
Business groups have raised concerns with the Chinese Labour Ministry that Hong Kong residents working on the mainland would be making double contributions if they were required to pay into both China's national social security fund and Hong Kong's Mandatory Provident Fund (MPF). They say that this will raise the costs of hiring Hong Kong residents on the mainland and undermine the spirit of the Closer Economic Partnership Arrangement between China and Hong Kong.
"We have signed mutual exemption agreements with other countries regarding the contribution of social security funds," stated Liu Danhua, a deputy director-general of the Ministry of Labour and Social Security's employment and training department, according to the South China Morning Post.
"However, if Hong Kong wants to enjoy exemptions, the two governments [of the special administrative region and the mainland] need to reach an agreement before this can be implemented. If the SAR government proposes this, we would consider it," Ms Liu added whilst speaking on the sidelines of an international women's conference in Beijing yesterday.
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