Information Proposal to raise individual income tax threshold (anticipated to be not more than RMB 3,000) has been submitted to State Council
  Recently, the proposal to raise the individual income tax threshold drafted by Ministry of Finance and State Administration of Taxation has been submitted to the State Council. According to an insider, the income tax threshold will be not more than RMB 3,000; while another information resource noted that the threshold might be raised from the current RMB 2,000 to RMB 2,500.
  Ministry of Human Resources and Social Security: payment rate for medical insurance can be lowered in some areas

Regarding those localities under social pooling with a large amount of fund balance for urban employees' basic medical insurance and work injury insurance, the Ministry of Human Resources and Social Security requested a moderate one-off cut in the payment rate of medical insurance over a limited time frame to ease the financial burden of employers in difficulty and of the insured. This is one in a series of policies recently formulated by the Ministry of Human Resources and Social Security aiming to stabilize the labor market and help enterprises through their current difficulties.


Basic pensions for enterprise retirees will be increased starting from Jan. 1, 2009

  The Central Committee of the Communist Party of China and the State Council have decided to increase the basic pensions for current pensioners who retired before December 31, 2008. The increased pension will come into effect on January 1, 2009. The increase is around 10% of average monthly basic pension for enterprise retirees in 2008.

Ministry of Human Resources and Social Security: labor demand has dropped 5.5% since Q3


Mr. Zhang Xiaojian, deputy minister of Ministry of Human Resources and Social Security, recently noted that the unemployment rate will definitely go up at the end of the year and into next year. He pointed out three notable changes in Chinese labor market since October: first, new job growth in urban areas has slowed down; second, labor demand by enterprises is weakening, as evidenced by the 5.5% drop in labor demand since Q3; third, the staff turnover ratio is high.


Dongguan suspended implementation of "Employment Contract Law" to help small- and medium-sized enterprises to survive the downturn

  Jiangling, vice mayor of Dongguan, recently noted that the Dongguan Municipal Government has suggested that the Central Government and Guangdong Provincial Government slow down the implementation process for the "Employment Contract Law" and the increase in the minimum wage.

Shenzhen will respond to financial crisis by lowering social insurance payment rate

  In view of the difficulties faced by Shenzhen enterprises hit by the global financial turmoil, Shenzhen will propose a series of measures to lower employer contributions to social insurance and suspend adjustments in the minimum wage level, to ease the burden of enterprises. The Shenzhen Municipal Labor & Social Security Bureau recently committed to take the above-mentioned measures to help enterprises respond to the crisis and overcome these difficulties.

Shanghai made Q4 labor demand forecast


The Shanghai Job Center recently conducted a sample survey of over 3,200 enterprises in Shanghai. The results showed Q4 labor demand by all kinds of enterprises in Shanghai was expected to drop moderately. See details below:
1.  52.4% of enterprises surveyed plan to recruit staff in Q4, a percentage slightly lower than that in Q3.
2. Q4 labor demand by the resident service industry is rising steadily, whereas labor demand by construction, leasing and commercial service industries has dropped slightly.
3.  Q4 labor demand for such positions as marketing, procurement, manufacturing and customer service remains robust, while that for administration, accounting and audit will drop slightly.


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About China Employment Watch:

As a bilingual periodical, China Employment Watch pays close attention to human resources issues. Monitoring the macro background of the economic transition in China and the ever-changing relationship between labor and management as it does, China Employment Watch provides the latest and timely information for human resource professionals, in-house counsels and key business decision-makers. China Employment Watch will also bring readers in-depth analyses as well as reasonable and achievable suggestions for the challenges and risks they are facing.

For more content, please read PEO bilingual journal China Employment Watch.
China Employment Watch Editorial Team
11 Dec 2008
Mainland: (+86) 400-628-5800
HK: (+852) 3793-3024