Work in China (4): Q&As about Salary payment and Tax Deduction

Q1: I need to know what happens if we don’t get paid.

A1: According to Article 77 of Labor Law of the People's Republic of China (2018 Amendment, herein referred as the “Labor Law”), if you have any dispute related to your employment contract with the employer, you can resolve through mediation, labor arbitration, litigation or directly negotiate with your employer.

The most common and efficient way is labor arbitration. Generally the labor dispute arbitration committee of your place of work has the jurisdiction over your dispute.. According to Article 82 of Labor Law, what you have to do is to file a written application to the Labor Dispute Arbitration Commission which has jurisdiction within 60 days starting from the date of the occurrence of a labor dispute. Generally speaking, the arbitration tribunal shall render its award within 60 days after receiving the application.

Q2: How many hours a day that I allowed to work legally and what is the rest period I need to have between work days?

A2: According to Article 36, 38, 41 of Labor Law, you shall work for no more than eight hours a day and no more than 44 hours a week on the average, every week you should have at least one day off. The work hours can be prolonged, but “shall be no longer than one hour a day, or no more than three hours a day if such prolonging is called for due to special reasons and under the condition that the physical health of laborers is guaranteed. The work time to be prolonged shall not exceed, however, 36 hours a month.”

Q3: Do I have tax deduction for my income?

A3: Pursuant to Article 1, 2 and 6 of Individual Income Tax Law of the People's Republic of China (Revised in 2018), a foreign national can enjoy an income tax allowance of RMB 5000 per month or RMB 60,000 per year, which will mean that you will not be taxed on the said amount, provided that you have stayed within the territory of China for an aggregate of 183 days or longer in a single tax year.