Salary structure

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Karu

Reacher

Joined: June 27, 2005
Posts: 298

Status: Offline

Posted: Aug 26, 2008 - 11:36 AM
Post subject: Salary structure

I am dealing with recrutement now for our Rep. Office. We are using Fesco for the payroll management of the local employees.

I have some questions that need to be answered, thanks for your help.
Basically net salary is:
Gross salary - individual part - income tax.

Costs for the company should be gross salary + company part

Where can I find regulations on how social insurance and housing fund should be calculated? Is there any regulations as well on benefits which should be granted? Is there any flexibility (i.e. is it possible to agree that the employee pays his tax on his own, or pays his individual part ...?).

Thank you for your help!

answerer

Raver

Joined: Apr 26, 2006
Posts: 453
Location: Shanghai
Status: Offline

Posted: Aug 31, 2008 - 07:50 AM

This is China, you can do anything as long as you don't get caught or if you bribe the right people. Actually, that probably applies anywhere in the world.

Social insurance and housing fund regulations are complex and vary by city (ie contribution to housing fund is different in Beijing and Shanghai). You need to hire a tax and HR lawyer in China, especially because you're recruiting for a Rep Office, which probably has all sorts of other rules and regulations and also because China's labor regulations are always changing. I'm sure Fesco can point you to someone.

challenge_wan

Newbie

Joined: Jan 11, 2007
Posts: 3

Status: Offline

Posted: Sep 06, 2008 - 01:14 PM

Hi, I think as you have already asked FESCO to recruit for, you can also ask them to pay the staff social insurance and house fund, etc for the staff, and pay them service fee monthly, thats most Rep office do I think.Now Staff's benefit have to follow the regulations, otherwise, staff have right to report or not work for you, or some dept will come to talk to you then.So this part cant be avoided.

For staff and company tax, you can get a registered accounting people to help for that monthly.

As I was in HR and accounting function in Rep office before, so I know most of that, and total beneift for staff is around 40% of the monthly salary (include social insurance and house,etc), in theory, staff and company share around half half, but in reality , some big and good company will cover all those 40%,so depend on your company if like to offer more to staff.I find some info about house fund, maybe that help bit,FESCO also have the % for each benefit if u ask for

http://www.efesco.com/pub/notice/net/zcfg.jsp?f=0706231

If you need some of help or maybe want me to work for your company, I can think about it Smile