Operating Cost
2014年05月12日 14:03

Recruiting and labor cost


Job centers and industrial zones can assist investors in recruiting skilled and unskilled staff

• Several job centers have been established in Changzhou. As with western job centers, job seekers register and their information is stored on a database.

• Administrative bodies of industrial zones can also assist in recruitment.

• In addition to job centers or industrial zones, FIEs can also recruit through print media and other channels.

• Foreign companies can hire people from any location, but as is the case throughout China, foreign nationals who wish to work in Changzhou must secure a work permit.

Contract procedures are straightforward, while the following points should be noted

• "Labor law" and "Labor Contract Law" are the main regulations on labor relations in China, which are applicable to all enterprises in China.

• The clauses related to signing and terminating the contract include.

- all labor contracts should be in writing.

- probationary period should be no longer than six months.

- to terminate the labor contract, the employer should provide either 30 days notice or pay a certain amount of compensation in lieu of notice.

Labor cost in Changzhou is relatively lower than other peer cities in the Yangtze River Delta

• In 2009, employees' average annual salary in Changzhou was USD 5,123, 13.3 percent and 12.6 percent lower than Hangzhou and Nanjing, respectively.

• Local government publishes the benchmark for salary growth every year; the figure for Jiangsu's salary increase is 10 to 12 percent.

Sources: (1) Changzhou Statistics Yearbook

       (2) China Statistics Yearbook

Social welfare benefits must also be paid by the company and thus need to be considered by investors when estimating staff costs

• All enterprises are required by the government to contribute to a range of benefits on behalf of employees, including pension, unemployment insurance, and medical insurance.

• The level of contribution is based on a percentage of salary, set by the local authorities. These non-salary costs in Changzhou amount to 41.3 to 43.3 percent (depending on the industry) on top of the base salary.

- the total employment cost of a worker on an annual salary of USD 427 would be USD 607.

- there is a cap of USD 1,381/month of salary subject to social welfare payment per employee, and a minimum of USD 201/month.

Source: Changzhou Municipal Human Resources and

Social Security Bureau


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