China: Pay and benefits

Original and updating author: Huimin (Laura) Wang, Squire Patton Boggs

See the legal services provided by the author of XpertHR International > China, including any discounts/offers for subscribers.

Summary

• Before employment begins, the employer must inform the employee clearly about their pay, including the wage rate and any other components of remuneration. (See Pay - general)
• Wages must be paid in Chinese currency and payment in kind is prohibited. (See Payment of wages)
• Employers must not make deductions from employees' wages, except for certain specified reasons. (See Deductions)
• All employees have a general right to receive equal pay for equal work. (See Equal pay)
• Statutory minimum wages are set by the governments of individual provinces, autonomous regions and certain municipalities, subject to the approval of the national Ministry of Human Resources and Social Security. (See Minimum wages)
• Employers must make contributions in respect of their employees to the state old-age pension scheme, and deduct from pay at source employee contributions to the scheme. (See Pensions)
• Employers are obliged to calculate and deduct personal income tax at source from employees' pay, and to pass on the sums withheld to the tax authorities. (See Income tax and social security)
• If employees are unable to work because of a non-work-related sickness or injury, they are entitled to paid sick leave, known as the "medical period". (See Sick pay)
• There are no legal requirements for employers to provide benefits in kind to employees. (See Benefits in kind)