· Paid Annual Leave
Years served in the company
|
Days of annual leave
|
1 full year, less than 10 years
|
5 days
|
10 full years, less than 20 years
|
10 days
|
>20 years
|
15 days
|
Statutory
national holidays and rest days are not included in annual leave.
· Rest Days
The
employer must ensure that its workers have at least one day off a week with a maximum
of 44 working hours per week.
· Sickness Allowance
Sick
leave is required to be paid for all employees. Sick leave is paid at 60-100%
of daily wages, depending on the seniority of the employee.
· Severance Payment
An
employee shall be given compensation based on the number of years he has worked
for the employer and at the rate of one month's wage for each full year he
worked and for no more than 12 years of his work.
· Termination
An
employee may dissolve the labour contract if he notifies the employer in
writing 30 days in advance. During the probation period, an employee may
dissolve the labour contract if he notifies the employer 3 days in advance.
· Minimum Wage
Regulations
on the Minimum Required Wage are set by each provincial government. Foreign
employers are expected to pay much more than the minimum, roughly double the
minimum or more.
· Social Security
Insurance
Each
agency must provide the five benefits legally required, at the rates set by the
local or provincial government. All foreign employees who work in China for
longer than six months must be included in the social security system as well.
The
legally required benefits are 1) retirement pension, 2) medical fund, 3)
unemployment insurance, 4) disability insurance, 5) maternity fund.
For
salaries higher than RMB 11,688, the social securities figure is 47% x RMB 11,688.
For
salaries lower than RMB 11,688, the social securities figure is 47% x Actual
Salary.
· Salaries Tax
Local
employees are taxed on the basis of the balance of their monthly income after
deducting their social benefits contribution, a standard deduction of RMB
3,500, and then applying the progressive tax rate.
Foreign
Employees:
(i)
foreigners that have lived in China for less than 90 days (183 days for
citizens of countries that have signed a treaty on the avoidance of double
taxation with China) will have to pay Individual Income Tax.
(ii)
foreigners that lived in China for more than 90 days (183 days) but less than a
year: income for work in China from all sources is taxable. However, for senior
executives, they are liable for their full income derived from Chinese sources
from the first day in the country.
Need more information?
Through our China WFOE (offices in Shanghai, Beijing and Guangzhou), Primasia provides one-stop China set-up and supporting services, including payroll, tax, accounting and licence renewal. If you need further assistance, please contact US.
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Need more information?
Please contact:
John Barclay -Email
Teresa Tam - Email
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Website: Primasia HK / Primasia China
LinkedIn: Primasia
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Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong
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