7. Construction License fee
A construction project undertaken by wholly foreign-owned enterprises or joint ventures whose capital is under or at USD 30 million is subject to a license fee at 0.1% of the total cost of civil engineering and the water and electricity facilities. The portion that exceeds USD 30 million will be charged at 0.05%.
8. Charge for Engineering Project Quality Supervision
Fee of supervised engineering quality is fungible charge. If construction enterprises pay the fee of supervised engineering quality to the department of supervised engineering while reporting. It will not list in budget or the end of balance. In accordance with Hu Jian Jian (95) No. 0580 ((Circular on Regulating Charges of Construction Project Quality Supervision in Shanghai )) , enterprise shall pay 0.15% of the value of total construction project, with 300 RMB as the bottom line. In accordance with Hu Jia Hang (1996) No.333 and Hu Cai Zong (1996) No.071 ((Supplementary Circular on Regulating Charges of Construction Project Quality Supervision in Shanghai )) , enterprise shall pay 0.1% of the value of total construction project for the one under that is under supervision.
9. Wages, Insurance and Welfare of Employees
1) The foreign-invested enterprises can at their discretion detemine what departments to be set up and stuuctre of the employees according to the operation of the enterprises, but employment of candidates from other provinces and cities, Taiwan, Hong Kong, Macao and other countries/regions shall be submitted to Shanghai Labor & Sociat Protection Bureau for approval.
2) The wages scales, forms of payment, and allowance for empioyees working in foreign invested enterprises are to be determined by the enterprises. Salary: The foreign invested enterprises shall carry out the regulations and rules on the minimum salary of empioyees promulgated by the State and Shanghai Municipal Govrenment. Since July 2003, the minimum monthly salary for empioyees working in the enterprises in Shanghai is RMB 570 and the minimum hourly wage is RMB 5 per hour, In 2002, the average monthly wage in Shanghai is RMB 1623.
3) Social Insurance:
Chinese employees working in foreign invested enterprises shall have social insurance so that when they are old, sick, injured, unemployed, or giving birth to children, they can get help and compensation. Following insurances are compulsory: Basic Rension Pension: 22.5% of a company's payroll of the Chinese employees and 1, 8% of an employee's monthly average wages of the previous year are paid by the company and the employee respectively to a local social insurance administration center. Unemployment Insurance: 2% of the payroll of the Chinese employees is paid by the company and 1% of the employee's average monthly income of the previous year is paid by the employee to a local employment agency;
Medical Insurance:
12% of a company's payroll of Chinese employees shall be paid to the local insurance administration center.
Social Insurance for Small Towns in Shanghai
《 Interim Measures of Social Insurance for Small Towns in Shanghai 》 came into force on October 20th 2003. The measures apply to employers in the surburbs of the city and employees with Shanghai citizenship, and to other people approved by Shanghai Municipal Government.
Employer shall pay 24% of the employee's income for basic social insurance, which includes 17% pension insurance, 5% medical service insurance, 2% unemployment insurance. No procreation insurance shall be paid at present. Insurance for employee's injury during employment shall subject to regulation separately promulgated.
4) Welfare: Employees working in foreign invested enterprises are entitled to the welfare stipulated by the State.
Housing fund: 7% of a company's payroll of the Chinese employees once a month 7% contributed by individual employee. Allowances and subsidies: traffic allowance, single child subsidy, and leaves provided for by the Chinese government.
5) Working Hours: Foreign invested enterprises shall carry out the current law of PRC on working hours: no more than 8 working hours a day, and no more than 40 working hours a week on average. When a company can not implement the normal working hour system, due to special production requirements, it can carry out nonstandard working hour system, i.e. non-fixed working hour system and comprehensively calculated working hour system.
6) For more information on labor laws and regulations, please consult Shanghai Labor Affairs Consulting Service Co. (Add: 45 An Yuan Road . Tel: 32270289 Fax: 62767238)
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