Overview

Capital
Beijing
Currency
Yuan
Date Format
yyyy-mm-dd

Taxes

Employer

Employer Payroll Tax

16.00%
Pension
0.20% - 1.90%
Work related injury
0.80%
Maternity
10.00%
Medical
0.80%
Unemployment
27.8% - 29.5% Total Employment Cost
Employee

Employee Payroll Taxes

8.00%
Pension
2.00%
Medical
10.00% Total Employee Cost
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
Uruguay
Czech Republic
Beijing
Chile
Myanmar
South Africa
66.17%
34.12%
34%
29.8%
3.35%
3%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
Beijing
Indonesia
Azerbaijan
Myanmar
45%
27.65%
24%
10%
4%
3%
2%

Minimum Wage

General

Minimum wage varies depending on the region.  The highest minimum wage is in Shanghai at 2,480 CNY per month. This is roughly the double of the minimum salary paid in such provinces as Hunan, Hubei, and Liaoning. The minimum salary in such fourth-tier cities as Loudi is only 1,220 CNY.  

Minimum wage (per month)
$2391
$2025
$1996
$308
$49.14
$47
$41
Luxembourg
Victoria
New South Wales
Beijing
Jamaica
Malawi
Ghana
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Paydays are between the 10th to the 20th of the following month. 

Working Hours

General

The standard workweek in China is 40 hours. Employees work 8 hours per day and 5 days per week.

Overtime

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

Payroll Contributions

Social Security

Social security is comprised of pension, medical insurance, unemployment, maternity, workplace injury, housing fund, and disability fund.  

Employer contributes 40% of workers wages (capped at 24,633 CNY), and employees contribute approximately 10.5% of their salary.

Disabled fund is paid once a year. Companies whose workforce does not exceed 1.5% of employees with disabilities must pay approximately 1.5% of the social insurance tax base to the disability fund.  

 

 

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.

Leave

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Myanmar
Austria
Brazil
Beijing
Trinidad & Tobago
Shanghai
Federal
30
16
46
30
13
43
30
13
43
5
11
16
13
13
11
11
10
10
Maternity Leave

A female employee giving birth is entitled to 98 days of maternity leave. She can take up to 15 days out of 98 (14 weeks) as a prenatal period. If the employee experiences dystocia, she is given 15 more days after she has been dismissed from a hospital. In the case of multiple birth, the mother receives additional 15 days for every baby.

Maternity leave (days)
410
365
365
128
50
45
0
Bulgaria
Montenegro
Serbia
Beijing
Qatar
United Arab Emirates
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

There is no statutory laws regarding paternity leave, however, there are regional regulations that provide paternity leave from 7-30 days.  In Beijing, paternity leave averages 15 days, while in Shanghai, the average is 10 days.  

Parental Leave

Family Planning Leave:

Employees who have difficulty conceiving and need medical procedures to be impregnated are entitled to up to 30 days of family planning leave, depending on a doctor’s recommendation. 

Family Visit Leave:

Employees are entitled to family visit leave, if their parents or spouse do not live together with them. The employee can take up to 30 days a year to visit a spouse. Up to 20 days a year are given to employees to visit their parents, provided they are single. Married employees receive up to 20 days per 4 years to visit their mothers and fathers.  

Other Leave

Bereavement leave: When a member of the employee’s immediate family – parent, spouse, or child – passes away, the employer is entitled to 1-3 days of bereavement leave. During this leave, employees receive their regular daily payment.  

Work related injury leave: Employees are entitled to up to 12 months of 100% paid work related injury leave, paid by the employee and social insurance will assist in paying for any medical treatment required.  In some cases, this type of leave may be extended for an additional 12 months.   

Termination

Termination Process

In China, it is difficult to terminate an employment contract unless by mutual agreement or if an employment contract expires. 

Notice Period

Advance notice is 30 days for both the employee and employer.  

Severance Pay

In most cases, dismissed employees are entitled to severance payment.

Severance pay amount depends on the years of service of the employee in the company. The standard is one month of wages for one full year of service and is capped at 12 months of severance pay.

VAT

General

Standard rate VAT is 16%

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