Officials in Shanghai are delaying the introduction of rules permitting expats living in the country to pay into its social security and pension system due to fear of upsetting investors.
In July, the central Chinese government announced it would allow foreign workers to pay into the state pension scheme benefits system from October.
However, the central government has only released basic details about the scheme so far and no payments have begun, Reuters reports.
Currently, foreigners working in China are not eligible for state benefits as work visas are tied to specific jobs and become invalid if individuals stop working.
Officials in Beijing have drawn up guidelines on how funds will be allocated to foreign workers' pension accounts, but labour officials in Shanghai, which is a directly controlled municipality of the Republic, have not done the same.
It is understood the Shanghai government is under pressure to drop the policy from foreign companies who are opposed to the extra business expense the scheme will involve.
Shanghai's labour authorities said the delay is due to technical difficulties in creating a payment procedure.
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