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Relevant laws and regulations

Updated: investinchina.chinadaily.com.cn


In accordance with the provisions of the Labor Law of the People's Republic of China, foreign-invested enterprises must be in line with the national and local minimum salary standards. The increase in the average salary of the employees is based on the development of the enterprise. Based on the company's annual return, labor productivity, as well as the local urban consumer price index and wage guidelines, the payroll is determined by the board of directors or through collective negotiation of the enterprise.

Under any of the following circumstances, the employing unit must, according to the following standards, pay laborers remunerations that are higher than those for normal working hours:

(1) To pay no less than 150 percent of the normal wages if an extension of working hours is arranged;

(2) To pay no less than 200 percent of the normal wages if work is arranged on off days and no make-up off days can be arranged; or

(3) To pay no less than 300 percent of the normal wages if work is arranged on statutory holidays.

In addition, Hainan province stipulates that the salary of high-level foreign talents employed by public institutions can be allocated in various flexible ways, such as an annual salary system, an agreed salary system, and a project salary system. Foreign executives apply to the market-oriented salary distribution mechanism, and enjoy the individual income tax reduction and exemption policy of the Hainan FTP, as well as talent introduction policies such as house and car purchases, children's enrollment, spouse employment and medical security. Their salary can be flexibly adjusted according to the salary level of personnel in the same industry, in companies with same scale, or with the same performance. They can enjoy corresponding social insurance, housing accumulation funding, legal holidays, annual leave and other benefits in accordance with law.

Working hour system

Foreign-invested enterprises implement China's current working hour system — no more than 8 hours per day and on average no more than 40 hours per week. Upon approval by the labor department, if the enterprises cannot operate on the standard working hours due to the characteristics of their production, the enterprises can operate on a non-standard working hour system, e.g. irregular working hours and comprehensive working hours scheme.

The employing unit may extend working hours as necessitated by its production or business operation after consultation with the trade union and laborers, but the extended working hour per day will generally not exceed one hour; if such extension is needed for special reasons, under the condition that the health of laborers is guaranteed, the extended hours will not exceed three hours per day. However, the total extension in a month will not exceed thirty six hours.

Insurance and welfare

According to provisions of the Social Insurance Law of the People's Republic of China, foreigners who work in China participate in social insurance. The specific measures for foreign talents who innovate and start a business in the Hainan Free Trade Port to participate in social insurance shall be subject to provisions of Interim Measures for Foreigners who Work in China to Participate in Social Insurance(Ministry of Human Resources and Social Security Order No 16), Notice on Managing Issues about the Participation in Social Insurance of Foreigners who Work in China(Issued by Human Resources and Social Security Office (2011) No 113).

Foreign talents can participate in our medical insurance and enjoy the same corresponding medical insurance treatments. Meanwhile, foreign talents who work full time in Hainan and have been certified as Class A, B talents of our province are included in the scope of health care service objects of the provincial health care commission; those who are certified as Class C talents enjoy annual physical checkup and other services; those who are certified as Class A, B, C, D talents enjoy commercial health group insurance purchased by the government and enjoy corresponding treatments and services according to insurance contracts.

All kinds of international talents enjoy medical services at an international clinic. To ensure medical treatment of high-level foreign talents, the following foreign talents can enjoy medical green channel services for talents at an international clinic in our province:

(1) High-level talents who hold Work Permit for Foreigners in China of Class A and B and are certified as Class A, B, C in our provinces introduced as full-time personnel or flexibly introduced.

(2) Spouses and immediate families within two generations of Class A, B talents were introduced as full-time personnel


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