- Minimum Salary: the minimum salary requirement is determined at the municipal or provincial level. For example, the updated monthly minimum salary in Shanghai, Beijing and Shenzhen in 2020 is RMB 2,480, RMB 2,200 and RMB 2,200 respectively.
- Employee contributions: employers have the obligation to pay part of social insurance and housing fund borne by the employers and to deduct and withhold employee personal income tax, social insurance and housing fund borne by the employees, and related payments from an employee’s salaries. Please note that as of to date, in Shanghai Municipality, it is not compulsory to pay social charges for foreigners. However, in cities such as Beijing, Tianjin, Shenzhen, and Nanjing, among many others, social insurance payments are compulsory for foreign employees.
- Statutory Holidays: All employees are entitled to enjoy statutory holidays as prescribed by the State each year as follows, subject to the regulations and may be updated in accordance with the current regulations and its updates:
- New Year’s Day, one-day holiday (January 1);
- Spring Festival, 3-day holiday (the first day, the second day and the third day of the lunar year);
- Qingming Festival, one-day holiday (the day of Qingming Festival in the lunar year);
- Labor Day, 1-day holiday (May 1);
- Dragon Boat Festival, 1-day holiday (the day of Dragon Boat Festival in the lunar year);
- Mid-Autumn Festival, 1-day holiday (the day of Mid-Autumn Festival in the lunar year); and
- National Day, 3-day holiday (October 1, 2, 3).
- Paid Annual Leave: Employees who have worked for one (1) or more successive years are entitled to a minimum amount of paid annual leave, from 5 to 15 days based on the total number of years since they started to work. The employer may approve the applications for paid annual leaves by considering the intentions of the employees, the actual production and work situation. If the employee does not work for the employer for a full year, the number of the annual leaves can be adjusted on a pro-rata basis. For example, if an employee started to work 11 years ago and has been working for the employer for 7 years, such employee is entitled to have a minimum of 10 days’ annual leave. An employee’s whole working experience is considered for this calculation, and not only his seniority with his/her current employer.
- Other Statutory Benefits. In addition to the statutory holidays and paid annual leaves, the employees are also entitled to enjoy sick leave, marriage leave, maternity leave, paternity leave, funeral leave, etc. in accordance with the national and local regulations. Employers should standardize the internal policies (for example, application process, proof and evidence and responsible person) in detail in the employee handbook.
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