The social security agreement between Spain and China protects posted workers and reduces companies’ labor costs
On May 19, 2017, following the negotiations commenced in 2011, the Social Security Agreement between the Kingdom of Spain and the People’s Republic of China was formally signed. The signing took place during the meeting of G-20 labor ministers in Bad Neuenahr (Germany) and was formalized between China’s Human Resources and Social Security Minister, Mr. Yin Wimin, and Spain’s Employment and Social Security Minister, Ms. Fátima Bañez.
The main aim of the agreement is to encourage cooperation between the two countries on social security matters and to guarantee social protections for workers posted to, and reduce the labor costs of companies located in, either country.
In view of the potential entry into force of the agreement, the aim of this seminar will be to analyze, from a highly practical standpoint, the main implications of the agreement for Spanish companies operating in, and the workers they post to, China. Accordingly, we will analyze both the personal scope of the agreement in order to ascertain which posted workers will be able to benefit from the agreement and the effects on the social security contributions payable in both Spain and China, indicating the general rules and the contributions affected by the agreement as well as the resulting wage cost savings and reductions.
We will also discuss the questions and concerns that should be taken into account when applying the agreement, as well as case studies illustrating such application. Lastly, we will briefly examine the wording of the agreement signed with Spain as compared with any agreements between China and Spain’s neighboring countries and the application of those agreements.
Following the presentation, we will hold a Q&A session to address any concerns the attendees may have regarding the subject matter.