China Employment Practice [Back to Article]  

 

 

 

 

1. Working hours

Most office personnel work 8 hours a day and 40 hours a week. Most factories are open from 8:00 AM to 5:00 PM. Factories usually work 6 days a week and most offices work 5 days a week. Most service companies are open from 9:00AM to 6:00PM.

2. Public holidays

10 days a year, specified as below

      New Year: 1 day (Jan. 1)

      Spring Festival: 3 days (Jan. 1, 2, 3 of the traditional Chinese
      lunar calendar, which varies from year to year according to
      the international calendar)

      Labor Day: 3 days (May 1, 2, 3)

      National Day: 3 days (Oct. 1,2,3)

Note: if it happens that the above dates hit a Saturday or Sunday, then a weekday is substituted and announced through the news media.

3. Insurance & Retirement Payments

 

Category

 

Percentage Paid By The Employee

Percentage Paid by The Company

For Employee Who is a Shenzhen Permanent Resident

For Employee Who is a Non-Shenzhen Permanent Resident

Pension Insurance

5%

9%

8%

Medical Insurance

2%

7%

6.5%

Insurance Against Injure on Duty

0%

0.5%

0.5%

Unemployment Insurance

0%

0.4%

0.4%

4. Personal Income Tax

Monthly Tax Payable = Monthly Taxable Income x Percentage on Excess – Tax on Lower Amount

Note: Monthly Taxable Income = Monthly Income – Standard Monthly Deduction (of RMB1,600 in Shenzhen)

Please refer to the following sheet for the tax rates

Monthly Taxable Income

Percentage on Excess

%

Tax on Lower Amount

 

Over RMB

Not Over BMB

0

500

5

RMB 0

500

2000

10

25

2000

5000

15

125

5,000

20,000

20

375

20,000

40,000

25

1375

40,000

60,000

30

3375

60,000

80000

35

6375

80,000

100000

40

10375

Over 100000

45

15375

5. Maternity Leave

According to the labor law, female employees are entitled to 90 days for maternity leave, those who are over 24 years old and give birth to their first child are entitled to an additional 15 days of maternity leave.

6. Termination

Under the following circumstances, the company can absolve the labor contract with the employee (i.e. fire the employee) with written notice of 30 days in advance:

    • An employee who gets an illness or injury while off duty or at work is not able to do his/her original work after having been healed.

    • An employee proves to be unfit for the job even after being trained or transferred to another position.

    • Due to the objective situation and according to which the labor contract is made and signed, the original labor contract cannot be executed and an agreement cannot be reached after the discussion between the two sides to amend the original labor contract.

7. Fees Paid to FESCO

RMB750 a month for each employee.

8. Paid Vacation Days

This depends on the type of company. American, Hong Kong and Taiwan companies tend to give less vacation time than other Western companies. American companies usually only give 10 days to start and the number builds up to 15 depending on the years of service. European companies tend to be more generous giving 15 to 20 days of vacation. Within state owned companies, single people living in a different city than their parents are by law given 20 days of vacation but after marriage this benefit is terminated.

9. In the past employees were entitled to two days of paid sick leave every month, however now the practices seem to be changing and it depends upon the company policy.

 

 

 

 

 
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