Expats can take advantage of Shenzhen's social security scheme according to a new national regulation governing the employment of overseas residents, which became effective Thursday.

Like Hong Kong, Macao and Taiwan residents currently working in Shenzhen, expats are entitled to three kinds of insurance under the current social security scheme, said Ye Huiqiang, director with the policy and regulation department of the Shenzhen Municipal Labor and Social Security Bureau on Thursday.

The three kinds are pension, medicare and work-related injury insurance. Local residents are eligible for two more kinds of insurance, covering unemployment and maternity.

"These two are not included (in the policy concerning foreigners) because they mean little to foreigners," said Ye.

Overseas residents can apply for the social security insurance using their work permits and passports, Ye said.

Nancy Wang, a human resources coordinator with an international accounting firm, said employees from Hong Kong and expats in her company had been looking forward to the policy, but some were still suspicious of the quality of local medical services.

"It is the government's responsibility to raise the medical service standard," said Ye, "But it is the rights of foreigners to be covered by such scheme in case of a serious disease."

Foreigners will be exempted from the schemes if their countries have signed mutual exemption agreements with China, like those Germany, Russia and South Korea have.

Employers must contribute to the social security schemes for each employee under the current policy. However, the labor and social security bureau will not force them to do so for expats who are a "special group," Ye said.

"We will give them some time to adapt to the new policy and believe they will accept it eventually as it is to the interest of themselves," said Ye.

Nancy Wang agreed that expats and Hong Kongers need time to make a decision. "They will compare it with other insurances, like the commercial ones," said Wang.

(Shenzhen Daily December 2, 2005)