Overview

Capital Beijing

Currency Yuan

Date Format yyyy-mm-dd

calendar icon Public holidays calendar

Taxes

Employer 19.00% - Pension
0.20% - 1.90% - Work related injury
0.80% - Maternity
0.80% - Medical

Employee 8.00% - Pension
2.00% - Medical

Termination

Termination Process There are two types of termination procedures in China - termination upon expiration and early termination. 1. Termination upon expiration: employers may choose not to renew the employment contract after expiration. In this case, the employees are entitled to severance payment. In accordance with the Chinese Labor Code, employees can request an open-ended employment contract after the expiration of the second fixed-term contract and employer must accept it. However, it is common practice among the employers in Shanghai to offer a fixed-term contract after the expiration of the second fix term contract as long as the employee agrees. 2. Early termination through mutual agreement, allowing both parties to decide the date of termination and the amount of severance payment that the employee will receive. If the employer and employee could not reach a mutual agreement, then it is a unilateral termination. To terminate the contract unilaterally the employer must clearly prove the cause that is stated in the Labor Code. Lastly the employer can terminate the contract with an employee by providing a 30 day notice or a payment in lieu of notice if the employee is incompetent and remains incompetent after training or adjustment of his position. In this case, the employee is also entitled to a severance pay.

Advance Notice Employees must provide 30 days notice before terminating their contract.

Severance Pay Severance payments are paid at one-month salary for each year the employee worked with the company.

Mandatory Benefits

Pension Fund Employer contributes 20% of the employee’s wages. Employee contributes 8% of regular wages. The salary ceiling for contributions is CNY 19,389.

Social Security Employer contributes 39.66% of workers wages, and employees contribute 10.5% of thier salary. Disabled fund, paid once a year, increases from 78.61 CNY to approximately 312.12 CNY. The tax base of social security changes every year in July, expect adjustments in the total payment of social security (for items other than disabled fund).

Minimum Wage

General From Septmeber 1 2018, 2,120 CNY ($318 USD) monthly.

Working Hours

General Full time is considered 40 hours weekly.

Overtime Overtime is paid ate a rate of 150% on regular workdays, 200% on rest days, and 300% on offical holidays.

VAT

General Standard rate VAT is 16%

Payment

Payroll Frequency Salaries are paid monthly – 12 payments per year, however some companies will allow 13th payment. Paydays are between the 10th to the 20th of the following month.