What Manufacturers Need to Know About China’s Mandatory Benefits

Last time I walked you through how to legally fire staff in China and prevent costly lawsuits, and this time around we are going to take a look at what foreign manufacturers need to know about China’s mandatory benefits.

The following blog is based on excerpts from the whitepaper entitled “Foreign Manufacturer’s Ultimate Guide to Hiring, Training, Managing & Firing Staff in China” which can be downloaded in its entirety right here!

What Foreign Manufacturers Need to Know About China’s Mandatory Benefits:

1. They are substantial.
2. Mandatory benefits and the interpretation/enforcement of the rules by local authorities varies from province to province , city to city and even district to district!
3. In general, the interpretation/enforcement is getting stricter each year and so are the fines for non-compliance.

Compensation Structures in China

For your reference, let’s take two typical employees in China and offer a breakdown of the expected benefits based on their salary. One column is for a mid-level office worker and the other column is for a typical factory worker making minimum wage.

That concludes post no. 3 out of 8 in my ‘hiring in China’ series. Stay tuned for the next post in the series to find out how foreign employers can protect themselves in China.