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Standard rate VAT is 16%
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.
Employees must provide 30 days notice before terminating their contract.
Severance payments are paid at one-month salary for each year the employee worked with the company.
From April 1 2018, 2,420 CNY (382 USD) monthly.
Employer contributes 20% of the employee’s wages. Employee contributes 8% of regular wages. The salary ceiling for contributions is CNY 19,389.
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).
Leave entitlement is dependant on length of employment: * Under 1 year: None * 1-10 years: 5 days * 10-20 years: 10 days * 20 years: 15 days
Employees are entitled to 3 to 24 months of sick leave (employer cannot terminate the contract during this period). Employers must pay 40-100% of employees reuglar wages dependent on the number of yeasrs in the company. Medical paperwork must be submitted by the employee.
98 days of maternity leave, 15 days of which should be used before the birth.
No specific laws
Full time is considered 40 hours weekly.
Overtime is paid ate a rate of 150% on regular workdays, 200% on rest days, and 300% on offical holidays.
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