Paying People in China

Paying People in Asia-Pac - this month China

As businesses continue to invest in operations in Asia-Pac, Ceridian are expanding its International Payroll coverage to meet the demand to pay people in this region.

This month we focus on the powerhouse of Asia-Pac, China, and give some insight into the country’s Employment Law and Taxation.

Employment Law

Hours of Work

The normal working week is limited to an average of 44 hours per week, with no more than 8 hours a day in the standard five-day week. Overtime is limited to a maximum of 36 hours over the course of a month.

Minimum Wage

The Chinese Government, as a matter of national policy, has been increasing minimum wage levels by 15-25% annually for the past three years. Unlike most countries, the rates vary by region and are set by each respective Local Government. Currently rates vary from 870RMB to 1500RMB for a full working month, depending on the province and town.

Holiday Entitlement

There are 11 statutory holidays (public holidays) per calendar year in China, and if employees work for an employer for one full year they are eligible to take additional holidays/annual Leave with full pay.

Maternity Leave

Statutory maternity leave has only recently been extended from 90 days to 98 days, and is normally financed by an insurance company, through social welfare payments.

Tax

Individual Income Tax (IIT)

IIT is based on the following monthly income (RMB):

1-1,500	3%
1,501-4,500	10%
4,501-9,000	20%
9,001-35,000	25%
35,001-55,000	30%
55,001-80,000	35%
80,001 and above	45%

Self Decleration

China’s tax regulations require taxpayers who fall under any of the following categories to self-declare their annual income:

1. (1) With annual income of 120,000RMB or more;
2. (2) Receiving salary and remuneration from two or more employers in China;
3. (3) Generating income abroad;
4. (4) Generating taxable income without withholding agent;
5. (5) Other cases as specified by the State Council.

If you want to find out how we can help you pay your employees in China, or other AsiaPac countries, contact us on 0800 0482 737.

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June 2012 — full archive »

• June's front page
• Pension Reform Salary Sacrifice clarification
• June’s HR Quiz
• HRevolution
• HR Analytics
• Paying People in China
• Consultations

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