Pay & Benefits

Working in China is very different from working in the West. Pay and benefits differ according to industry, but expatriates are typically offered double the salaries of local employees.

In major cities such as Shanghai or Beijing, larger companies often reward employees with an annual bonus of two months salary. It’s also traditional to present a cash gift on the eve of major holidays, up to $200 on Chinese New Year, National Day and Labour Day. In addition, you can expect to attend two glitzy dinner parties per year and to be whipped off to a resort, all expenses paid, twice yearly.

Chinese employees enjoy three, week-long holidays each year, besides the annual 15 salaried days. These are referred to as "Golden Weeks". If you’re married but live far away from your partner you get 20 days holiday to spend together. New mothers are given six months maternity leave; there is no paternity leave.

Tax

Tax is the foremost revenue source for the Government of the People’s Republic of China and is intrinsic to the country’s economic and social development. 1994 Tax reforms have streamlined the system.

The State Administration of Taxation (SAT) is the highest tax authority in China, controlling tax laws, regulations and the detailed rules for their implementation. With taxes on everything from animal husbandry to vessel usage it would be counter productive to list them all here.

Any individual who has resided in China for more than a year pays tax on their worldwide income. If you’ve lived in China for less than a year, you only pay tax on income from domestic sources. Income tax in China is progressive, commencing with 5% and topping out at 45%. Everybody is liable for an initial 2000 Yuan deduction for ‘expenses’.

Visas

To apply for a visa you will need to submit your application in person to the visa office of your Chinese embassy. Appointments are not usually required but you may be interviewed by an official and they have the right to refuse your visa without explanation.

There are a number of types of visa. To apply for any of them you’ll need to bring a valid passport, a completed Chinese Visa Application form and a recent passport photo. The Z visa is for long term work and to obtain one of these you must bring the following additional documents: an employment permit and an invitation letter from a relevant Department of the Chinese Government.

When your visa arrives be sure to check it and raise any queries immediately.

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