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Hiring Local Employees in China

The legislation surrounding hiring employees in China can be confusing for foreign firms operating in China. Due to new Chinese labour contract laws, outsourcing to firms offering professional payroll services has become increasingly common. The Labour Law provides a minimum wage requirement, determined at a provincial level. The Regulations on Minimum Wages (adopted on March 1, 2004) require all provinces, autonomous regions, and directly administered municipalities to set minimum wage standards and report them to the ministry.

Employers Hiring Local Employees that fail to meet these standards may be ordered to compensate employees for the difference, pay other compensation, or both. Employers must also deduct and withhold employee individual income tax, social security and related payments. This is for improved convenience for employers to arrange employee wages.

Payroll services can ensure that an enterprise remains profitable, and that the wages of each local employee truly reflects the value of their efforts. LehmanBrown can offer specialist services to assist with all stages of payroll processing, including:
1.    Payroll Set Up
2.    Payroll Tax
3.    Assessment
4.    Revision.

LehmanBrown is able to offer comprehensive payroll processing no matter where your company is situated, arranging payments in a professional, timely manner. Our longstanding experience of Chinese businesses enables us to provide support for payroll services, taking into account the unique regulations of all provinces and regions.

Specific laws for Hiring Local Employees in China

Special laws give female employees protection for various circumstances such as maternity benefits. Employees between the ages of 16 and 18 are also protected under special occupational health and safety measures, including special procedures for hiring minors. Hiring children less than 16 years of age is strictly prohibited. Employers must also implement occupational health and safety programs in the workplace and conduct regular physical examinations of employees who have been in hazardous environments.

All enterprises must register with the local social insurance institution, participate in social insurance schemes and pay social insurance premiums on a monthly basis. The portion of premium payable by individual workers will be withheld and deducted from their salary and paid to the relevant authorities by the enterprises

How can LehmanBrown support with Hiring Local Employees Services?

The Chinese government tends to revise minimum wage levels and welfare on an annual basis, leading to more change within the system. LehmanBrown can help your company navigate through the complexities and uncertainties surrounding employing local employees and ensure your business complies with the most up-to-date legislation.

With a payroll expert at your side, you can easily negotiate the complex regulations and requirements for hiring local Chinese Employees to keep your finances in check.

To make an enquiry, please contact us at enquiries@lehmanbrown.com. For information about Hiring Local Employees in China and the services that LehmanBrown can offer, please see the relevant webpages.