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Immigrant Visa & HR - China

Question

Frequently Asked Questions on Total Salary Composition

Answer
Q:
What are the components of total salary?
A:
Total salary comprises six parts, as follows:

  • hourly rate;
  • unit rate;
  • bonus;
  • subsidies and compensation;
  • overtime rate;
  • salary under special circumstance.

Q:
Does unit rate include extra salary earned on excess units?
A:
Yes. The extra salary earned on excess units is the difference between the total salary calculated based on unit rate and standard unit rate. In substance, it forms part of unit rate. In the newly released regulation, extra salary earned on excess unit is classified under unit rate, instead of as singled-out item. In practice, the extra salary earned on excess units should be singled-out when making salary statistic charts.

Q:
Does total salary include housing subsidy?
A:
In substance, housing subsidy is a part of total salary. However, since the housing subsidy is still at the stage of a trial, the practical subsidy differs by regions. For example, some regions give out cash, which can be allocated on other activities besides housing and renting. Some places giving out housing vouchers. Which only applicable to purchase or rent houses and flats. Therefore, housing subsidy is temporarily excluded from total salary. There will be regulations released once the housing subsidy completes reform.

Q:
How does the adjusted incremental salary reflects on total salary?
A:
If the adjusted incremental salary is paid out during the year, it should be listed into hourly rate. If it is paid out in the next year, it should be listed into “salary under special circumstance” under total salary.

Q:
Does standard salary include teaching tenure subsidy and caring tenure subsidy?
A: When calculating standard salaries, structural teaching and caring tenure subsidy should be included. In other words, standard salaries should include structural basic salary, hierarchy wages, tenure subsidy, teaching tenure subsidy and caring tenure subsidy.

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