Welcome Delegation! China Employment  April 2008 Shanghai, China
<ul><li>China Labor force:  798 million (2007 est.)    </li></ul><ul><li>Labor force by occupation  </li></ul><ul><li>agri...
<ul><li>PRC labor law system </li></ul><ul><li>State Legislation: Labor Law of The People’s Republic of China, effective a...
Labor Law in China <ul><li>Labor Law of The People’s Republic of China,  </li></ul><ul><li>effective as of January 1, 2008...
Worker Rights <ul><li>Worker Rights   </li></ul><ul><li>The Right of Association   </li></ul><ul><li>The Right to Organize...
Worker Rights <ul><li>The Right to Organize and Bargain Collectively   </li></ul><ul><li>China's National Labor Law permit...
Worker Rights <ul><li>Minimum Age for Employment of Children </li></ul><ul><li>China's National Labor Law forbids employer...
Worker Rights <ul><li>Acceptable Conditions of Work </li></ul><ul><li>The law does not set a national minimum wage, but al...
Social Security System in China <ul><li>China's social security system includes:  √ Core insurances for employees paid by ...
Employment of Chinese Employees <ul><li>Type of Employers </li></ul><ul><li>Legal entities in PRC can hire Chinese employe...
Salary Facts <ul><li>Minimum Salary </li></ul><ul><li>the Minimum Hourly Wage Rate in Shanghai Municipality is adjusted fr...
Salary Facts <ul><li>Direct employment  – company shall pay to the tax bureau the employee’s IIT, to the government the em...
Social Insurances for Chinese Employees *The base is employee’s average monthly salary of last year. Average social salary...
Salary Facts Social Average Salary  – the basis of social benefits  17.4% 2892 2007 10.2% 2464 2006 9.9% 2235 2005 2033 20...
Salary Reference for Chinese Employees 71104 24948 74787 167007 IT Manager 8 61782 25045 55902 143704 Logistics Manager 7 ...
Employment of Expatriates <ul><li>Type of Employers </li></ul><ul><li>Domestic PRC company: </li></ul><ul><li>- State-owne...
What do we do? <ul><li>Aspecto Asia offers the following services: </li></ul><ul><li>Recruitment and flexible staffing sol...
Welcome to China <ul><li>Thank you! </li></ul><ul><li>谢谢! </li></ul>
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Aspecto Asia

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  • Aspecto Asia

    1. 1. Welcome Delegation! China Employment April 2008 Shanghai, China
    2. 2. <ul><li>China Labor force: 798 million (2007 est.)   </li></ul><ul><li>Labor force by occupation </li></ul><ul><li>agriculture 50%, </li></ul><ul><li>industry 22% </li></ul><ul><li>services 28% </li></ul>China Labor Facts <ul><li>Unemployment rate </li></ul><ul><li>the registered urban unemployment is 4% for 2007 </li></ul><ul><li>substantial unemployment and underemployment in rural areas </li></ul><ul><li>2008 expected registered urban unemployment is below 4% </li></ul>
    3. 3. <ul><li>PRC labor law system </li></ul><ul><li>State Legislation: Labor Law of The People’s Republic of China, effective as of January 1, 2008 </li></ul><ul><li>The establishment, performance, amendment, termination and ending of employment contracts </li></ul><ul><li>Regulations on work safety and protection of women, juvenile workers, etc. </li></ul><ul><li>Local regulations at municipality or provinces level </li></ul><ul><li>UN International Labour Organization conventions </li></ul>Labor Law in China
    4. 4. Labor Law in China <ul><li>Labor Law of The People’s Republic of China, </li></ul><ul><li>effective as of January 1, 2008 </li></ul><ul><li>Provisions on employment </li></ul><ul><li>Labor contracts </li></ul><ul><li>Working hours </li></ul><ul><li>Wages </li></ul><ul><li>Skill development and training </li></ul><ul><li>Social insurance </li></ul><ul><li>Dispute resolution </li></ul><ul><li>Legal responsibility </li></ul><ul><li>Supervision and inspection </li></ul>
    5. 5. Worker Rights <ul><li>Worker Rights </li></ul><ul><li>The Right of Association </li></ul><ul><li>The Right to Organize and Bargain Collectively </li></ul><ul><li>Prohibition of Forced or Compulsory Labor </li></ul><ul><li>Minimum Age for Employment of Children </li></ul><ul><li>Acceptable Conditions of Work </li></ul>
    6. 6. Worker Rights <ul><li>The Right to Organize and Bargain Collectively </li></ul><ul><li>China's National Labor Law permits workers in both state and private enterprises in China to bargain collectively. </li></ul><ul><li>The National Labor Law provides for workers and employers at all types of enterprises to sign individual as well as collective contracts. </li></ul><ul><li>Collective contracts should be worked out between ACFTU or worker representatives and management and specify such matters as working conditions, wage distribution, and hours of work. </li></ul>
    7. 7. Worker Rights <ul><li>Minimum Age for Employment of Children </li></ul><ul><li>China's National Labor Law forbids employers to hire workers under 16 years of age and specifies administrative review, fines and revocation of business licenses of those businesses that hire minors. </li></ul><ul><li>Laborers between the ages 16 and 18 are referred to as &quot;juvenile workers&quot; and are prohibited from engaging in certain forms of physical work including labor in mines. </li></ul><ul><li>Good public awareness, a cheap, abundant supply of young adults of a legal working age, nearly universal primary schooling, and labor law enforcement all serve to reduce opportunities and incentives to hire child workers. </li></ul>
    8. 8. Worker Rights <ul><li>Acceptable Conditions of Work </li></ul><ul><li>The law does not set a national minimum wage, but allows local governments to determine their own standards on minimum wages. </li></ul><ul><li>On May 1, 1995, China reduced the national standard workweek from 44 hours to 40 hours excluding overtime. The National Labor Law mandates a 24-hour rest period per week, does not allow overtime work in excess of three hours a day or 36 hours a month and sets forth a required scale of overtime compensation. </li></ul><ul><li>The government implemented a program to provide funds to cities to ensure that people were able to maintain a minimum standard of living. </li></ul>
    9. 9. Social Security System in China <ul><li>China's social security system includes: √ Core insurances for employees paid by employers, others offered by the government </li></ul><ul><li>   Old-Age Insurance √ </li></ul><ul><li>    Unemployment Insurance √ </li></ul><ul><li>    Medical Insurance √ </li></ul><ul><li>    Insurance for Work-related Injuries √ </li></ul><ul><li>    Maternity Insurance √ </li></ul><ul><li>    Social Welfare </li></ul><ul><li>    Special Care and Placement </li></ul><ul><li>    Social Relief </li></ul><ul><li>    Housing Security </li></ul><ul><li>    Social Security in Rural Areas </li></ul>
    10. 10. Employment of Chinese Employees <ul><li>Type of Employers </li></ul><ul><li>Legal entities in PRC can hire Chinese employees directly: </li></ul><ul><li>WFOE </li></ul><ul><li>JV </li></ul><ul><li>Non legal entities in PRC, can’t hire Chinese employees directly: </li></ul><ul><li>Representative Offices </li></ul><ul><li>Foreign Embassy, Consulate in PRC </li></ul><ul><li>NGO </li></ul><ul><li>* Solution: Non legal entities must entrust a qualified Chinese recruitment service company to hire Chinese employees. Although many WFOE & JV also prefer to outsource its recruitment & HR affairs to professional service providers. </li></ul><ul><li>Major service providers: </li></ul><ul><li>FESCO - Shanghai Foreign Service Co., Ltd, </li></ul><ul><li>CIIC - China International Intellectech Corporation </li></ul>
    11. 11. Salary Facts <ul><li>Minimum Salary </li></ul><ul><li>the Minimum Hourly Wage Rate in Shanghai Municipality is adjusted from Gross RMB 7.5 yuan to Gross RMB 8 yuan since April 1st, 2008. </li></ul><ul><li>the Minimum Monthly Gross Wage of workers in the Municipality is adjusted RMB840 to RMB960 since April 1st , 2008. </li></ul><ul><li>While the following items are not included within the minimum wage and shall be paid in addition by the enterprises according to relevant laws and regulations: </li></ul><ul><li>1.     Contributions for Social Insurances and Public Housing Fund by the individual workers themselves; </li></ul><ul><li>2.     Overtime pay; </li></ul><ul><li>3.     Allowances for mid-shift, night shift, work in extreme temperatures, in mine or exposure to toxic and harmful materials; </li></ul><ul><li>4. Allowances for meals, transportation and housing. </li></ul>
    12. 12. Salary Facts <ul><li>Direct employment – company shall pay to the tax bureau the employee’s IIT, to the government the employee’s social benefits and to the employee his/her net salary. </li></ul><ul><li>Indirect employment (via FESCO or CIIC) – company shall pay to FESCO or CIIC the employee’s gross salary & company share part & management fees(*service charge only, additional welfares according to contract). </li></ul><ul><li> FESCO or CIIC shall pay to the government the social benefits and to the tax bureau the IIT. FESCO or CIIC shall pay to the employee his/her net salary. </li></ul>62% of gross salary paid to government fund as the employee’s social welfare 3,100 Social Benefits 3,760 Net salary earned by employee gross salary-individual share-IIT 340 Individual Income Tax (IIT) paid by the employee 3,100 Taxable salary gross salary – individual share – RMB1000 (PRC citizen deduction) 7,220 Company Total Cost gross salary + company share 900 Individual share 18% of gross salary 2,200 Company share 44% of gross salary 5,000 Gross Salary Monthly Salary Sample (RMB: yuan) reference figure*
    13. 13. Social Insurances for Chinese Employees *The base is employee’s average monthly salary of last year. Average social salary is announced annually by government. Min. base is 60% of the mean monthly average social salary of last year. Max. base is 300% of the mean monthly average social salary of last year. **2007 Average Social Salary of Shanghai is RMB2892/month. 2008 Min. base=2892 RMB 2008 Max. base=8676RMB 18% 44% 62% Sub-total 6 7% 7% 14% Housing Fund 5 0% 0.5% 0.5% Occupational Injury Insurance 4 2% 12% 14% Mandatory Medical Insurance 3 1% 2% 3% Unemployment Insurance 2 8% 22.50% 30.50% Pension Insurance (Maternity insurance included) 1 Remark Fee Ind. Fee Co 。 Breakdown (Employer contribution/ Employee contribution) Fee Rate Base* Item No. Basic PRC Employee Social Insurance and Housing Fund (Shanghai Domicile City Insurance)
    14. 14. Salary Facts Social Average Salary – the basis of social benefits 17.4% 2892 2007 10.2% 2464 2006 9.9% 2235 2005 2033 2004 Increasing Rate Shanghai Social Average Salary RMB/month Year
    15. 15. Salary Reference for Chinese Employees 71104 24948 74787 167007 IT Manager 8 61782 25045 55902 143704 Logistics Manager 7 63629 34538 65224 163148 Business Development Manager 6 52933 19639 49395 110551 Legal Supervisor 5 75,687 25,621 69,588 178,538 Manufacture Director 4 79,126 27,758 67,303 227,121 HR Director 3 85,872 29,942 88,588 286,148 Financial Director 2 110, 635 32,101 89,624 359,293 President (General Manager) 1 Average Low Level Middle level High Level Position No. RMB/year 2007 Salary Guideline for Full Time Employment Gross, excluding Social Benefits
    16. 16. Employment of Expatriates <ul><li>Type of Employers </li></ul><ul><li>Domestic PRC company: </li></ul><ul><li>- State-owned </li></ul><ul><li>Private </li></ul><ul><li>Foreign invested: </li></ul><ul><li>- WFOE </li></ul><ul><li>JV </li></ul><ul><li>Non legal entities in PRC: </li></ul><ul><li>Representative Offices </li></ul><ul><li>Foreign Embassy, Consulate in PRC </li></ul><ul><li>NGO </li></ul>
    17. 17. What do we do? <ul><li>Aspecto Asia offers the following services: </li></ul><ul><li>Recruitment and flexible staffing solutions </li></ul><ul><li>Interim and project management </li></ul><ul><li>HRM consulting, coaching and workshops </li></ul><ul><li>You can focus on doing business, while we take care of staffing: </li></ul><ul><li>Your company’s most valuable asset. </li></ul>
    18. 18. Welcome to China <ul><li>Thank you! </li></ul><ul><li>谢谢! </li></ul>

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