The pay structure in China is not complicated on the surface. Actually the structure of pay is designed considering the viewpoint of local. The followings are the characteristics of pay structure in China.
① The employment is the term of contract employment. The most important thing is that whether the employees are satisfied with the current salaries or not. Therefore, whether the salary level has the competition compared with other companies. It is different with other countries such as Japan. The pay structure in Japan is that salaries will be increased by the long-term employment.
② In the keen competition to catch capable persons, it is general to pay the much salaries in order to show the advantages. However, in some countries, there is a tendency to give up the capable persons in order to take a balance in the companies. The aim of this style of system is to maintain fairness. But in China it will be the source of unfairness.
③ In the companies of European or China, they put emphasis on the system of bonus. For example, in general, the bonus will be paid two times in one year. In the private corporations of China, there is a case to pay the bonus for 13 months. However, it is not certain and definite. It is also possible that the corporations will not pay any bonus.
【Overview of Wages in China】
In the year of 2015, the minimum wages in different provinces are presented. There are some points should be paid attention to. The points are as follows.
① The minimum wages of Beijing and Shanghai don’t include the payment of social insurance paid by individuals.
② In the different provinces, the different levels of wages are set and even in the same province; there are different levels of monthly salary. And according to the different periods of reviews, it should be focused on the differences of periods.
③ The monthly minimum salaries are only applied for the workers that are not required of professional technologies. There is no relationship with the managers and staffs.
④ For example, in Shanghai, the minimum wages in 2006 is 750 yuan. In the current year, it increased 2.69 times.
【Our Payroll services in China】
We provide the services of payroll in China. The basic structure of payroll can be expressed as follows.
Balance = Total Payment – Deduction
In a word, the companies have the obligation to pay the income tax, resident tax, and healthy insurance, pension insurance, employment insurance and other social insurances from the payroll of employees. It is called legal deduction.