28 September 2011

China HR Update.

Strangely it might seem, in a populous country like China, one of the most pressing issues is talent drought. We have hand picked some latest China HR updates to keep you informed.

foreigners’ participation in China’s social security system  
Source: WSJ.com 

Foreign employees will be included into China’s social insurance system when a new social insurance law is put into place, effective beginning 15 October 2011.Under the new measures, only foreign nationals whose countries have already executed bilateral or multilateral social security treaties with China will be exempt from participation provided they can prove that they are continuing to make contributions in their home countries. At the moment, only Germany and South Korea have signed such treaties with China. For a copy of Unofficial Translation Of China’s New Social Insurance Rules For Foreigners, click here.

China amended personal income tax law

Source: Xinhua
The amendment raised the monthly tax exemption threshold from 2,000 yuan (about ?200) to 3,500 yuan.The new law reduces the previous nine-bracket system to a smaller seven-bracket system, eliminating brackets corresponding to tax rates of 15 and 40 percent.
Payroll for all China employees will need to reflect the new calculation method at the end of September.

Beijing FIEs Subject to Labor Union Fees
Source: China Briefing

Foreign invested enterprises (FIEs) in the pilot areas of Beijing are required to pay labor union fees, according to a recent announcement made by the Beijing Labor Union.

In addition, an FIE with more than 25 employees is required to either establish a labor union by itself, or join the community labor union. Smaller FIEs with less than 25 employees can only join the community labor union.