China

• New Year Holiday
• Spring Festival
• Qingming Festival
• Labour Day Holidays
• Dragon Boat Festival
• Mid-Autumn Festival
• National Day Holidays

Working Hours

Employees can work up to 8 hours a day, or a maximum of 40 hours a week.

Minimum Wage

CNY 1,300 to CNY 2,590 per month, depending on the region.

Employee Tax

Annual income	Tax rate
Up to CNY 36,000	3%
CNY 36,001 – 144,000	10%
CNY 144,001 – 300,000	20%
CNY 300,001 – 420,000	25%
CNY 420,001 – 660,000	30%
CNY 660,001 – 960,000	35%
More than CNY 960,001	40%
Pension insurance	8% - 10%
Unemployment insurance	0.2% - 2%
Medical insurance	0.5% - 2%
Public housing fund	5% - 12%

Bonuses

There are no statutory bonus schemes in China, but a 13th month salary is common.

Employers have one month after the employee starts work to co-sign a written contract. If this isn't provided on time, they must pay a double salary to the worker.

Valid contracts must include:

• Employer and employee identity details
• Job title and responsibilities
• Working hours
• Salary
• Contract length and work start date
• Social security information
• Information regarding employment protection and safety.

Annual Leave

Minimum of 5 days' paid holiday after one year of service, rising to 10 days after ten years and 15 days after 20 years.

Sick Leave

Employees are entitled to 3-24 months' sick leave, but the length and pay rate differs between regions.

Parental Leave

• Maternity leave: 98 days' paid leave, starting with 15 days taken before the birth. Employees are entitled to an additional 30 to 60 days depending on the city and province.
• Paternity leave: 2 weeks' leave as standard, though this varies by region.
• Parental leave: parents can take an additional 5 days off per year to look after a child under three.

Termination Process

Employers in China can terminate a contract provided they give notice and/or compensation in line with legal requirements.

Other grounds for termination include:

• Violation of employer rules
• Neglect of duties
• The employee has another job which interferes with their ability to carry out their duties.

Employees can also end a contract by giving at least 30 days' notice.

Severance Pay

Employees are entitled to one month's severance pay for each year of service.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions.  The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.