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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:
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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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