Author
Bowtie Team
Updated on
2025-06-13
Disclaimer: This article is translated with the assistance of AI.
Since 2020, mainland China has opened doors for Hong Kong residents to access social insurance, adding a smart retirement boost. Known as ‘Five Insurances and One Fund’, discover its key protections, types, contribution rates, and eligibility to help you plan for a mainland career with confidence!
What is Five Insurances and One Fund?
“Five Insurances and One Fund” refers to mainland China’s social security and welfare system. The “Five Insurances” include pension insurance, medical insurance, work injury insurance, unemployment insurance, and maternity insurance, while the “One Fund” is the housing provident fund. According to mainland China’s laws, Hong Kong people employed by mainland enterprises must participate in the five basic social insurances (Five Insurances). The housing provident fund, however, is only needed for buying or renting property in mainland China, so it’s not always required.
Here’s a breakdown of the coverage provided by the “Five Insurances and One Fund”:
| Five Insurances and One Fund Type | Coverage Items |
| Pension Insurance | It provides financial security for retirees, including basic pension, transitional pension, adjustment funds, and personal accounts. Eligible policyholders can receive the basic pension upon reaching the statutory retirement age. |
| Medical Insurance | It compensates for medical expenses due to illness or injury, helping to ease the financial burden on patients. |
| Work Injury Insurance | It offers financial assistance to employees who are injured or suffer from occupational diseases, covering costs like medical treatment, rehabilitation, and work injury allowances. |
| Unemployment Insurance | It provides financial support to unemployed individuals with no limits on the number of claims or waiting periods. The duration of unemployment benefits varies based on the length of contributions paid. |
| Maternity Insurance | It covers reimbursement for medical expenses during childbirth and provides maternity allowances, helping female employees recover their ability to work while supporting infant feeding and healthy growth. |
| Housing Provident Fund | It offers financial support for employees to buy housing. This system involves long-term housing savings contributed by various entities, such as government agencies, enterprises, and organizations. Employees contribute a portion from their own funds, while employers deduct and deposit another portion into the employee’s housing provident fund account. These funds can be withdrawn for expenses related to buying, building, renovating, or expanding housing. |
Who pays for the “Five Insurances and One Fund”?
In China’s “Five Insurances and One Fund” system, work injury insurance and maternity insurance are fully paid by the employer, while basic pension insurance, medical insurance, and unemployment insurance are paid jointly by the employer and employee in set proportions.
Fully paid by the employer:
- Work injury insurance: Employers must cover the full cost to protect employees’ rights in case of work-related injuries or occupational diseases.
- Maternity insurance: Employers are also responsible for the full payment to support employees during maternity periods.
Paid jointly by the employer and employee:
- Basic pension insurance: Typically, employers and employees share the cost in a specific ratio, with each contributing their part.
- Basic medical insurance: Similar to pension insurance, it’s paid jointly by employers and employees in proportion.
- Unemployment insurance: This is also shared between employers and employees based on a set ratio.
What types of medical insurance are there in mainland China?
Mainland China’s medical insurance mainly consists of employee basic medical insurance, urban and rural residents’ basic medical insurance, and commercial insurance.
- Employee Basic Medical Insurance: This is a mandatory statutory system designed to protect employees’ basic medical rights, combining social pooled funds with personal medical accounts.
- Urban and Rural Residents’ Basic Medical Insurance: This targets minors and non-working residents, merging urban residents’ basic medical insurance with the new rural cooperative medical scheme to create a unified system.
- Commercial Insurance: Offered by mainland insurance companies, it includes health insurance for illnesses, care, income protection, and medical coverage to handle expenses for high-cost imported drugs and specialty medications not covered by basic insurance.
What Are the Contribution Ratios for the Five Insurances and One Fund?
Hong Kong and Macao residents working in mainland China must contribute a certain percentage of their monthly salary, with employers and employees sharing different proportions. The contribution ratios for pension insurance and unemployment insurance are fixed, while medical insurance and work injury insurance have various levels that employers choose for their employees.
Currently, in some regions, the employer’s contribution ratio for pension insurance has been reduced from 16% to 14%, and for unemployment insurance, it’s 0.8%; meanwhile, the highest ratios for medical insurance and work injury insurance are 6% and 0.6%, respectively. Employees don’t need to contribute personally for work injury insurance and maternity insurance, but they do have to pay a portion for the other three.
The table below uses an employee with a monthly income of 10,000 yuan as an example to break down the total monthly contributions for the “Five Insurances and One Fund” for both the employer and employee:
| Five Insurances and One Fund Types | Employer Contribution Ratio | Employer Contribution Amount | Employee Contribution Ratio | Employee Contribution Amount |
| Pension Insurance | 14% – 16% | 1,400 – 1,600 yuan | 8% | 800 yuan |
| Medical Insurance | 6%* | 600 yuan | 1.5% | 150 yuan |
| Work Injury Insurance | 0.6%* | 60 yuan | No contribution required | 0 |
| Unemployment Insurance | 0.8% | 80 yuan | 0.2% | 20 yuan |
| Maternity Insurance | 0.8% | 80 yuan | No contribution required | 0 |
| Total Monthly Contribution Amount | Employer: 2,220 – 2,420 yuan | Employee: 970 yuan | ||
- * Calculated based on the highest contribution ratio
Can Hong Kong People Buy the Five Insurances and One Fund (Social Security)?
Starting from 2020, Hong Kong residents have been able to participate in China’s mainland social insurance system, opening up access for them to join the mainland’s social security framework. Generally, Hong Kong residents who are employed in mainland enterprises, self-employed individuals, or retirees can join mainland social security, and those working for mainland enterprises must participate in the five basic social insurances.
Conditions for Hong Kong people to join mainland social security:
- Hong Kong people who are legally residing or employed in mainland China;
- Age requirements: Typically between 16 and 60 years old;
- Possession of a mainland China residence permit or work permit;
- Valid identification documents.
If Hong Kong residents don’t meet these conditions, they might not be able to join mainland social security, but they can still opt for commercial insurance to cover their needs—like health insurance, life insurance, or other related products. These are typically offered by private insurance companies, with coverage and terms varying by provider and plan.
In Different Situations, What Types of Mainland Social Security Can Hong Kong People Buy?
| Situation | Types of Mainland Social Security Hong Kong People Can Buy |
| Working in Mainland | Must participate in employee basic pension insurance, employee basic medical insurance, work-related injury insurance, unemployment insurance, and maternity insurance as required by law. |
| Self-employed in Mainland | Can participate in employee basic pension insurance and employee basic medical insurance. |
| Flexible Employment in Mainland | Can participate in employee basic pension insurance and employee basic medical insurance. |
| Residing in Mainland | Can participate in urban and rural residents’ basic pension insurance and urban and rural residents’ basic medical insurance. |
| Studying in Mainland | Must participate in the urban and rural residents’ basic medical insurance in the location of their higher education institution as required. |
What Do You Need to Prepare When Buying the Five Insurances and One Fund?
Enrollment and payment registration for mainland social security is usually handled by the employer (such as a Hong Kong employer) through the electronic tax bureau or tax service hall, with the personal payment portion deducted by the employer. For Hong Kong and Macau residents who are individual business operators, they can bring their business license and valid personal identification to the tax service hall in their registration area to handle the procedures. Here’s a quick rundown of the required documents:
| Applicant | Required Documents |
| Company | Social insurance fee detailed declaration form |
| Individual Business Owner | Home Return Permit or residence permit, business license |
| Self-employed | Home Return Permit, residence permit, or employment registration proof |
| Non-employed | Home Return Permit, residence permit, bank card, and Hong Kong and Macau residents’ registration form for urban and rural residents’ pension insurance |
Can Hong Kong Insurance Provide Coverage in Mainland China?
VHIS
Bowtie VHIS Standard is global, so medical expenses in Mainland China are also covered; if you have purchased Bowtie VHIS Flexi or Bowtie Pink , whether treatment in Mainland China is covered depends on the policy’s restrictions regarding the coverage area.
If you purchase Bowtie VHIS Standard / Bowtie VHIS Flexi
Eligible medical expenses for treatment in Mainland China hospitals (excluding psychiatric treatment, rehabilitation treatment, and medical negligence coverage) are covered.
If you purchase Bowtie Pink
Involves List of Designated Hospitals in Mainland China outside of Chinese hospitals / List of Designated Hospitals in Mainland China within premium hospitals or exceeding the specified ward level, these medical expenses will be compensated according to the Bowtie VHIS Standard plan’s compensation limits.
In other words, if you’re seeking treatment in Mainland China and want full compensation # , you’ll need to choose a non-premium hospital from the List of Designated Hospitals in Mainland China .
- # Full reimbursement means there are no sub-item reimbursement limits and it only applies to specified coverage items. The payable reimbursement is subject to the deductible balance (if applicable), annual coverage limit, lifetime coverage limit, and other limitations including reasonable and customary charges, pre-existing conditions before policy purchase, the designated hospitals list in Mainland China, and matters related to medical treatment in the US. For detailed product terms and conditions, product risks, and exclusions, please refer to the relevant product website and policy.
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