F.A.Q
Frequently Asked Questions about employment in China
Employment in China FAQs
In full-time employment, a probationary period may be agreed between the enterprise and the employee depending on the length of the employment contract. The law also stipulates that the salary of employee during the probationary period shall not be less than the lowest salary of the company for the same position or 80% of the salary agreed in the employment contract, and shall not be lower than the minimum wage standard in the employer’s locality. However, in the case of part-time employment, according to Article 70 of the Labour Contract Law, the parties shall not agree on a probationary period.
When an employment relationship is established, a written employment contract is required. The employer and the employee shall sign a written employment contract within 1 month from the date the employee starts working if the written employment contract was not signed at that time. If an employment contract is signed before the employee starts working, the employment relationship is confirmed on the date the employee starts working.
If an employer is objectively unable to conclude or renew a written employment contract with an employee in a timely manner in accordance with the law due to an epidemic or epidemic prevention and control measures, it may conclude or renew the employment contract in electronic form by consensus with the employee, or it may reasonably extend the time for concluding or renewing the written employment contract through negotiation and other means.
Non-Shanghai resident households must have paid personal income tax or social insurance continuously for five years or more, without interruption since the date of purchase.
The prerequisite for non-residents of Shanghai to participate in the car plate auction is that they hold a Shanghai residence permit and have contributed social insurance or personal income tax in Shanghai for a continuous period of 3 years from the date of application.
Requirements for applying Hukou in Shanghai: holders of a Shanghai Residence Permit are required to have contributed urban social insurance in Shanghai for 7 years. And those who have contributed urban social insurance in Shanghai at a rate of more than 2 times the average salary of Shanghai employees in the last 3 consecutive years are given priority in applying for a permanent household in Shanghai.
According to the Labour Contract Law, “If a labour relationship has been established and a written labour contract has not been concluded at the same time, a written labour contract shall be concluded within one month from the date of employment.”
What is the solution if the employer is unable to conclude or renew a written employment contract with the worker in accordance with the law due to the epidemic or epidemic prevention and control measures?
If the employer is objectively unable to conclude or renew a written employment contract with the worker in accordance with the law due to the epidemic or epidemic prevention and control measures, the employer may conclude or renew the employment contract in electronic form by consensus with the worker, or may reasonably extend the time for concluding or renewing the written employment contract through negotiation.
Due to the epidemic, the employee is unable to provide normal work during the probationary period. Upon consensus between the employer and the employee, the probationary period may be extended accordingly, but the extension shall not exceed the period during which the employee is unable to provide normal labour.
Payroll in China FAQs
Cardholders can apply for a replacement 60 days before the expiry date of their social insurance card. The process for replacing a social insurance card is the same as for a new application, and applicants can apply for a replacement through the service outlets or online service platform. The social insurance card management service provider or the social insurance card service bank will issue a new card after the cardholder has agreed to do so.
The employer shall, based on the following standards, pay employees remunerations higher than those for normal working hours under any of the following circumstances:
1. Pay no less than 150% of the normal salary if the employer arranges employees to work overtime during workdays;
2. If a worker is arranged to work on a rest day but cannot be arranged to take compensatory leave, he shall be paid no less than 200% of his salary;
3. Pay no less than 300% of the normal salary additionally if the employer arranges employees to work overtime during national holidays.
▶ Overtime work on October 1, 2 and 3
On statutory holidays, if the employer arranges for the employee to work, he/she shall pay a wage remuneration of not less than 300% of his/her daily wage.
▶ Overtime work on October 4, 5, 6 and 7
If a employee is arranged to work and then take a compensatory rest, overtime pay may not be paid; if a compensatory rest cannot be arranged, a salary payment of not less than 200% of the employee’s daily salary shall be paid.
Recently, the relevant departments in Shanghai jointly issued the Notice on the Adjustment of the City’s Employees’ Basic Medical Insurance Premium Rates.
The notice is as follows.
1. Starting from October 2022, the employer contribution rate for basic medical insurance will be reduced by 0.5%, from the original 10.5% to 10%. Among them, the rate of employer contribution to local additional medical insurance premiums will be adjusted from the original 2% to 1.5%, while the rate of employer contribution to basic medical insurance premiums and the rate of individual contribution will not be adjusted.
2. The percentage of the city’s flexibly employed persons paying the basic medical insurance premiums for employees is adjusted from 11.5% to 11%.
3. This Notice shall come into effect on October 1, 2022 and shall be valid until September 30, 2027.
In accordance with the National Health Insurance Bureau, the National Development and Reform Commission, the Ministry of Finance, and the State Administration of Taxation’s Circular on the Phased Deferment of Unit Contributions for Basic Employee Health Insurance (Health Insurance Development [2022] No. 21) and the Circular on Further Matters Relating to the Phased Deferment of Unit Contributions for Basic Employee Health Insurance (Shanghai Health Insurance Regulation [2022] No. 5), eligible small and medium-sized enterprises can enjoy the deferment without having to apply for the deferment. The policy of deferring the payment of unit contributions is available to eligible small and medium-sized enterprises without having to apply for deferral, and deferring the payment of unit contributions for basic employee health insurance from September to November 2022.
During the deferment period, if the employee applies for pension insurance benefits or transfers the relationship, the enterprise shall make up the deferred pension insurance premiums for him/her, and the deferred pension insurance premiums shall be approved by the social security agency and transferred to the taxation department for collection through data sharing, without the need for separate declaration by the employer.
Marriage Leave per province / City
Number of days of marriage leave:
Beijing: 10 days
Tianjin: 10 days
Shanxi: 30 days
Shandong: 3 days
Henan: 21 days/28 days
Hebei: 18 days
Inner Mongolia: 18 days
Heilongjiang: 15 days/25 days
Jilin: 15 days
Liaoning: 10 days
Shaanxi: 13 days
Gansu: 30 days
Qinghai: 12 days/15 days
Ningxia: 3 days
Xinjiang: 23 days
Tibet: 10 days
Sichuan: 3 days
Chongqing: 15 days
Guizhou: 13 days
Yunnan: 18 days
Hubei: 3 days
Hunan: 3 days
Guangxi: 3 days
Guangdong: 3 days
Fujian: 15 days
Anhui: 13 days
Zhejiang: 3 days
Jiangsu: 13 days
Shanghai: 10 days
Jiangxi: 18 days
Hainan: 13 days
Notes: The above data is for reference only. The actual number of marriage leave days shall be subject to the latest local policy
Pension Fund in China FAQs
At an executive meeting of the State Council held on 26 September, it was decided to introduce personal income tax benefits for policy-backed, commercially-run personal pensions: a pre-tax deduction for contributors at a limit of RMB 12,000 per year, no tax on investment income for the time being, and a reduction in the effective tax burden on income received from 7.5% to 3%. The policy was implemented retroactively from the 1st January this year.
A personal pension is a system of individual accounts where contributions are entirely the responsibility of the participant and are fully accumulated. The maximum annual contribution to a participant’s personal pension is RMB 12,000.
The most immediate benefit for individuals participating in a personal pension system is the national tax incentives available to them. The maximum annual pre-tax deduction is capped at RMB 12,000.
To participate in a personal pension, you need to open two accounts: one is a personal pension account on an information platform for information records, enquiries and services, etc. The other is a personal pension fund account opened or designated by a bank for contributions, purchase of products, pooling of earnings, etc.
For cross-province employment, you can transfer the pension insurance premiums paid at the original workplace to the new workplace, merge them with the contributions at the new workplace, and accumulate the information of the participants’ contributions at both places, so as to ensure the participants’ pension insurance rights and interests in each place are complete and accurate.
Transfer of pension insurance relations is required when cross-province movement occurs.
If you were previously employed and insured in a neighboring province, you are required to transfer your pension insurance relationship when you move across provinces.
Workers who are employed in cross-provincial mobility can transfer the pension insurance relations paid in the original workplace to the new workplace, merge them with the contributions in the new workplace, and accumulate the information of participation and contributions in both places.
The participant can apply for transfer to the social security agency in the place of transfer. The application for transferring pension insurance relations can also be done online, and participants can apply directly through the National Social Insurance Public Service Platform.
(Website: http://si.12333.gov.cn) to apply for the transfer of pension insurance relations. The subsequent transfer will be handled by the docking of the social security agencies in the transferring and transferring places.
It should be noted that according to the current regulations, the basic pension insurance relationship may not be transferred to the temporary account when a man reaches the age of 50 and a woman reaches the age of 40 when he is first employed and enrolled in a non-domiciled place. The location of the temporary account cannot be used as the place for receiving pension benefits. When these participants reach the conditions for receiving benefits, all the contributions in the temporary account will be unified and pooled to the place for receiving benefits, which will not affect the retirement benefits.
If you are not sure where you will work in the future, or if you feel that it is a bit troublesome to go through the transfer procedure, you may not go through the transfer procedure first, and then apply for the social insurance agency in the place where you will receive your benefits to collect the basic pension insurance relationship and the corresponding funds, and then start to enjoy the basic pension insurance benefits.
China Visa & Work Permit FAQs
For reunion type, application procedures for a Chinese Permanent Residence Card are now more complicated with stricter scrutiny of Chinese spouses’ foreign green card status.
However, for legal persons and principals of companies in “Double-Zones” and “Double Innovation” Areas in Shanghai, application is now much easier. Business operation will be the primary standard to evaluate whether you’re eligible to apply, instead of personal tax payments or individual staying time in China.
Foreign High-end Talents (Category A) include scientists, science and technology leading talents, international entrepreneurs, special talents and other foreign high-end talents urgently needed in the economic and social development of China who fall in line with the national priority list for foreign talents.
To be specific, they are (1) selected for the Domestic Talents Programs; (2) conforming to the international criteria of professional achievement; (3) fulfilling the market demand for government-encouraged posts; (4) innovative and entrepreneurial talents; (5) outstanding young talents; (6) graded 85 points or more in the points-based system.
applying for a Foreigner’s Work Permit?
(1) No limits of age, academic qualification or work experience
(2) Pledge system for certificate of no criminal record
(3) Those who have entered China with a visa or a valid residence-type permit may directly apply for the Foreigner’s Work Permit.
(4) A Foreigner’s Work Permit with a validity period of up to 5 years
Foreign Professionals (Category B) are in line with the guidance catalogue for foreigners working in China and the demands of the economic and social development of China and fall within any of the following conditions, including (1) foreign professionals with a bachelor degree or above and 2 years and above related work experience. (2) Skilled talents with internationally recognized qualification certificates or in short supply. (3) Teachers of foreign languages. (4) Foreign talents with average salary income no less than 4 times the social average salary income of the previous year in Shanghai. (5) Special personnel under the relevant state regulations or for the implementation of special projects. (6) Professionals graded 60 points or more according to the points-based system.
Other Foreigners (Category C) refer to foreigners employed to meet the demand of the domestic labor market in line with the state policies and regulations, including (1) foreign employees in line with the relevant regulations concerning the employment of foreigners in China; (2) foreigners engaged in some temporary or short-term (no longer than 90 days) posts; (3) foreigners under the quota system management, including young foreigners coming to China for internship under intergovernmental agreements, foreign students in line with the relevant regulations, foreign graduates from overseas institutions of higher learning, foreigners engaged in long range fishing and other special fields.
China HR Legal FAQs
If the company fails to offer the same contract under identical terms and salary, then a severance payment must be issued.
The employer shall file an application for recognition of work-related injury within 30 days from the date of the accidental injury or the date of diagnosis or identification of the occupational disease.
If the employer does not recognize the application and does not file an application for recognition of work-related injury within 30 days, the injured employee or his/her close relatives or trade union organization may file an application for recognition of work-related injury within one year from the date of the accidental injury or the date of diagnosis or identification as an occupational disease.
When you are injured, you can first go to the nearest medical institution for treatment. After the application for recognition of work injury is submitted, you need to go to the designated medical institution for work injury.
The employer determines the period of leave for the injured employee according to the medical certificate from the medical institution for work injury and notifies the injured employee in writing of the period of leave in accordance with the law.
During the period of leave, the original salary and benefits shall remain unchanged and shall be paid by the employer on a monthly basis.
If you are injured in a traffic accident or an accident on urban railways, passenger ferries or trains on your way to or from work that you are not primarily responsible for, you can be considered as injured at work.
If an employee dies of a sudden illness during working hours and at your workplace or dies within 48 hours after rescue, it can be regarded as a work-related injury.
According to the Shanghai Work Injury Insurance Regulations, employers employing part-time employees shall pay work injury insurance premiums in accordance with the contribution base and rates stipulated in these Regulations.
The key point:
It is mandatory by law to pay work injury insurance premiums for part-time employees. If an injury occurs and the company fails to pay work injury insurance premiums for the employee as required, the employer will be liable for the relevant fees as stipulated in the Work Injury Insurance Regulations.
According to the “Implementation Opinions on Strengthening Employment Stabilization Initiatives in Response to the Impact of the COVID-19”, the provincial urban and rural household registration restrictions for freelancer to participate in the basic pension insurance for enterprise employees have been lifted in all regions.
According to the “Guidance on Safeguarding the Labor Security Rights and Interests of Newly Employed Workers”, except for Beijing and Shanghai, the All places have liberalized the restrictions on household registration for freelancers to participate in the basic pension insurance for enterprise employees at their place of employment. All types of freelancers can participate in the basic pension insurance for enterprise employees at their place of employment or their place of domicile.
When an employment relationship is established, a written employment contract is required. The employer and the employee shall sign a written employment contract within 1 month from the date the employee starts working if the written employment contract was not signed at that time. If an employment contract is signed before the employee starts working, the employment relationship is confirmed on the date the employee starts working.
What are the solutions if the employer is unable to conclude or renew a written employment contract with the employee in time due to the epidemic or epidemic prevention and control measures?
If an employer is objectively unable to conclude or renew a written employment contract with an employee in a timely manner in accordance with the law due to an epidemic or epidemic prevention and control measures, it may conclude or renew the employment contract in electronic form by consensus with the employee, or it may reasonably extend the time for concluding or renewing the written employment contract through negotiation and other means.
If any employee suffers an injury caused by an accident or is diagnosed and identified as suffering from an occupational disease on the Prevention and Control of Occupational Diseases, the employer shall, within 30 days from the occurrence of such accident causing the injury or the date the occupational disease is diagnosed and identified, file an application for work-related injury determination with the social insurance administration department of the region. In special circumstances, the time limit for application may be extended with the approval of the social insurance administration department.
In the event that an employer fails to apply for the identification of work-related injuries according to the previous clause, the injured employee or his/her close relatives or the Union representative can directly apply for the identification of work-related injury to the social insurance administrative department in the region where the employers are, within a year from the date of injury or the date the employee is diagnosed and the ailment is identified as an occupational disease.
Paying social insurance premiums in accordance with the law is a legal obligation of both the employer and the employee, and is mandatory. Article 58 of the Social Insurance Law states that “The employer shall apply to the social insurance agency for registration of social insurance for its employees within 30 days from the date of employment.”
No employer or individual can waive the payment of social insurance by agreement. It is an offence for employers not to pay or not to pay social insurance to employees in accordance with the regulations, and they need to bear the corresponding legal responsibility.
Therefore, even if the employer and the employee have signed the Voluntary Waiver of Social Insurance Agreement, it does not have legal effect.