2.1 Withholding of income tax

Commentary

2.1.2 Taxable remuneration and allowable deductions

China
China | Commentary

2.1.2 Taxable remuneration and allowable deductions

China | Commentary

2.1.2     Taxable remuneration and allowable deductions

Minimum salary

There is a minimum salary requirement to be met by an employer, but the level of minimum salary varies from city to city.

In Shanghai, the minimum monthly salary of full-time employee is adjusted to RMB2,590 and the minimum hourly salary of part-time employee is adjusted to RMB23 from 1 July 2021 (please refer to Hurenshegui [2021] No. 18).

In Beijing, the minimum monthly salary of full-time employee is adjusted to RMB2,320 and minimum hourly salary of part-time employee is adjusted to RMB25.3 from 1 August 2021 (please refer to Jingrenshelaofa [2021] No. 77).

Remuneration

As mentioned in 2.2.1, employee's annual compensation is composed of:

  1.  

    •     salaries paid based on working hours

  2.  

    •     salaries paid based on the number of products produced

  3.  

    •     all kinds of bonuses

  4.  

    •     all kinds of allowances and benefits

  5.  

    •     overtime payments, and

  6.  

    •     payments under special circumstances

For non-taxable remuneration, see 3.1.

The gross salary is defined as the basic rate of pay to which an employee is

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2.1.2 Taxable remuneration and allowable deductions