Employers must pay living subsidies and provide medical treatment allowances for all PRC employees. Employers and employees must also participate in the PRC social insurance system for unemployment, old age pensions, medical treatment, work-related injuries and maternity care. In addition to these mandatory subsidies, employers may also introduce incentive schemes such as bonuses or allowances. These schemes must be paid out of an employee bonus and welfare fund which is created from the employer's after-tax profits.

What are the standard employment terms in China?

The standard workweek is five, eight-hour days. Enterprises requiring different standards may, with approval from the local labor administration, adopt flexible work systems.

Restrictions apply to overtime work. Overtime may not exceed one hour a day and 36 hours a month, although, under special circumstances and subject to agreement with trade unions and employees, this may be longer. Standard overtime wages are:

150% of regular wage for overtime
200% of regular wage for work on rest days
300% of regular wage for work on statutory holidays
Employees are only entitled to annual leave after one year's service with the same employer. The amount of annual leave varies according to work obligations, qualifications, and other factors, but normally does not exceed two weeks a year. Employees are also entitled to home leave if they are required to live away from their spouse or parents. Employees visiting their spouse are entitled to 30 days home leave per year. Home leave to visit parents is either 20 days per year or 20 days per four years, depending on whether the employer is married.