Human Resources

Minimum wages in China continue to grow, with Fujian, Qinghai, and Guangxi provinces all having raised theirs so far in 2020. While the provinces of Qinghai and Fujian had announced their 2020 minimum wage increase last year, Guangxi is the only province to announce and implement an increase to its statutory wage after the coronavirus outbreak. Last year, seven regions (Chongqing, Shaanxi, Shanghai, Beijing, Hebei, Fujian, and Qinghai) in China …

By Dor Barak of PTL Group At the time of publication, the Coronavirus crisis in China has begun to lift and business conditions are creeping back to some kind of normality. Nonetheless, the spread of the virus over recent weeks has shaken the fabric of business proceedings both in China and the wider world. Against this backdrop of lockdown, the companies that have fared best have been the ones that …

During this tumultuous period where revenues are down, managing your staff is essential, explain Patrick Gu and Yang Yuhua of LLinks Law Offices Do I have to pay staff full salaries even if my company has had to suspend business or production due to the epidemic? Yes, you should pay at least up to 30 days in full. Beyond this period, your company can negotiate new payment standards with employees, …

For many companies in China, the only way to survive the coronavirus outbreak might be to make staffing redundancies. Here law firm Jingtang explain the steps you need to take. As the coronavirus outbreak continues, enterprises in China are experiencing enormous challenges in the management of employee relations. The nationwide implementation of epidemic prevention and control measures has exerted varying degrees of pressure on enterprises, affecting their production, operation and …

In a period of transition between tax laws, Chinese taxpayers can decide which tax policy to use for their annual bonus, writes Valur Blomsterberg of accounting firm Integra Group It’s been a year since changes to Individual Income Tax (IIT) came into effect in January 2019, and tax brackets and a host of other changes to the country’s individual taxation system were introduced. Amongst the new provisions was the comprehensive …

As China’s economic status and strategy continues to shift, companies are adopting a variety of different strategies to reflect these changes in their approaches to HR, writes Stephan Kracht of Fiducia China  China is more affluent and innovative than ever, but also more complex and competitive. In this new reality of “China 2.0”, foreign businesses are under intense pressure to do things differently – starting with the way they structure …

Tom Pattinson speaks to Matthew Kong from recruitment consultancy Talent Spot about trends in Chinese recruitment strategy   For businesses looking to enter the Chinese market, what are the first things they should consider when it comes to hiring? Without a doubt, employers should ensure they have carried out a background or reference check before taking anyone on. Legally speaking, companies need to ensure they are legally able to employ …

Following the Chinese government’s announcements to reduce the financial burden on the private sector, 27 local governments have reduced the mandatory contribution to the pension fund from 20 percent to 16 percent for local companies. Although this is good news for businesses, China is nonetheless facing increasing pressure to reform its pension system. With an aging population, local governments are confronted with rising costs for its senior citizens at the …

Freelancers and the self-employed who make their own choices of where, when and who they work for is on the rise globally. And for China, it is also a key growth area as young professionals are realising their value to overseas customers, writes Tom Pattinson It’s increasingly rare to find a worker in the UK who is willing to spend their 40-year career working for ‘the man’. Workers – especially …

As a foreigner in China, are you paying more tax since 2019 under new tax law asks Lily Li of Axel Standard News of recent changes to Individual Income Tax (IIT) for foreigners in China spread like wildfire over WeChat and other social networks. Numerous amendments regarding the “five-year rule” fueled uncertainty as foreigners were left wondering whether the rule would remain or not. Effective January 1st, 2019, the five-year …