Overview

Capital
Beijing
Currency
Yuan
Date Format
yyyy-mm-dd

Taxes

Employer

Employer Payroll Tax

Beijing:
19.00%
Pension (maximum base is 25,401 CNY)
0.80%
Unemployment (maximum base is 25,401 CNY)
10.00%
Medical Insurance (maximum base is 25,401 CNY)
0.2- 1.90%
Work Injury (maximum base is 25,401 CNY)
0.80%
Maternity Insurance (maximum base is 25,401 CNY)
12.00%
Housing Fund (maximum base is 25,401 CNY)
32.30- 44.50% Total Employment Cost
Employee

Employee Payroll Taxes

Beijing:
8.00%
Pension
0.20%
Unemployment Insurance
2.00%
Medical Insurance
12.00%
Housing Fund
22.20% Total Employee Cost
Employer

Employer Payroll Tax

Shanghai:
20.00%
Pension (maximum base is 23,496 CNY)
0.50%
Unemployment Insurance (maximum base is 23,496 CNY)
9.50%
Medical Insurance (maximum base is 23,496 CNY)
0.32%
Injury Insurance (maximum base is 23,496 CNY)
1.00%
Maternity Insurance (maximum base is 23,496 CNY)
7.00%
Housing Fund (maximum base is 23,496 CNY)
38.32% Total Employer Cost
Employee

Employee Payroll Taxes

Shanghai
8.00%
Pension
0.50%
Unemployment Insurance
2.00%
Medical Insurance
7.00%
Housing Fund
17.50% Total Employee Cost
Employee

Employee Income Tax

3.0%
Up to 36,000 CNY
10.0%
36,000- 144,000 CNY
20.0%
144,000- 300,000 CNY
25%
300,000- 420,000 CNY
30%
420,000- 660,000 CNY
35%
660,000- 960,000 CNY
45%
960,000 CNY and above
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Belarus
China
Cambodia
South Africa
Georgia
87.39%
44.5%
34%
44.5%
2.1%
2%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
China
Georgia
Belarus
Ukraine
45%
27.65%
24%
22.2%
2%
1%
0%

Minimum Wage

General

The minimum wage varies depending on the region.  The highest minimum wage is in Shanghai at 2,480 CNY per month. This is roughly double the minimum salary paid provinces such as Hunan, Hubei, and Liaoning.

Minimum wage (per month)
$2391
$2255.28
$1996
$308
$36.80
$22
$2.33
Luxembourg
Italy
Australia
China
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Salaries are paid on a monthly basis and must be paid by the end of the month.

13th Salary

The common practice is to give an annual bonus equal to one months’ salary before the Chinese New Year.

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 limited to one hour per day, however, in special circumstances, can be up to 3 hours but limited to a total of 36 hours per month.

Leave

Paid Time Off

Paid time off is calculated by the length of employment:

  • Less than 1 year of employment- no leave entitlement
  • 1-10 years of employment- 5 days’ of annual leave
  • 10-20 years of employment- 10 days of annual leave
  • 20+ years of employment- 15 days of annual leave
Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
China
Mexico
Malaysia
Federal
30
13
43
30
12
42
24
17
41
5
11
16
6
8
14
8
6
14
10
10
Public Holidays

There are 11 public holidays, however, some regions have additional holidays.

Sick Days

Sick leave pay varies based on the length of service:

6 months sick leave:

  • Less than 2 years of employment- 60% of the regular wages
  • 2-4 years of employment- 70% of the regular wages
  • 4-6 years of employment- 80% of the regular wages
  • 6-8 years of employment- 90% of the regular wages
  • 8+ years of employment- 100% of the regular wages

Over 6 months of sick leave:

  • Less than 1 year of employment- 40% of the regular wages
  • 1-3 years of employment- 50% of the regular wages
  • 3+ years of employment- 60% of the regular wages

Employees must provide a medical certificate.

Maternity Leave

A female employee is entitled to 98 days of maternity leave and an additional 15 days in the case of difficult labor or multiple births. Some cities offer additional maternity leave for women who give birth after the age of 23.

Maternity leave is paid by the Social Security Bureau in which the woman is registered and is based on an average monthly salary over the 12 month period before the birth. Social security will either pay this rate or 3 times the minimum wage, whichever is higher.  In some areas such as Beijing and China, the employer supplements the maternity pay with additional pay.

PAID MATERNITY LEAVE (DAYS)
410
365
365
98
45
30
0
Bulgaria
Serbia
Albania
China
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Fathers are entitled to 10 days if paid paternity leave, paid by the employer. In some cities, additional paternity leave is given.

Parental Leave

Nursing mothers are entitled to 1 hour off per day for children under the age of 12 months old.

Other Leave

Marriage Leave– Each city follows its own laws, which vary between 3-10 days.  In Beijing and Shanghai, employees are entitled to 10 days’ marriage leave.

Bereavement Leave– Varies between cities and is betweek 1-3 days.

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. However, if the employee is on probation, 3 days’ notice can be given.

Severance Pay

Severance pay varies based on the reason for termination, but in general, severance is 1 month’s salary for each year of employment capped at three times the minimum wage, and cannot exceed 12 months.

Probation Period
  • For employment contract of 3 months to a year – a maximum of 1 months’ probation
  • For employment contracts of 1 to 3 years – a maximum of 2 months’ probation
  • For employment contracts of 3 years or more – up to 6 months’ probation
  • For employment contract for less than 3 months or that expire upon completion of assignment – probation is not permitted

VAT

General

13%

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