10
2024.01

Notes on setting salaries for overseas employees

What do I need to pay attention to when designing remuneration packages for overseas employees?When hiring overseas employees, Chinese companies should understand the relevant policies in advance and set up compensation and benefit packages for them that are in line with local practices in order to carry out their operations there in a compliant manner. Based on our practical experience in serving clients, we have summarised the following points to note when setting remuneration for overseas employees:It is generally recommended to communicate with employees on gross pay rather than net pay. In some countries and regions, the amount of employee's tax refund is based on his/her family situation (e.g. family income, children's situation, etc.), and employers do not have access to such information, making the conversion from net pay to gross pay difficult to realise.It is generally recommended to communicate with employees about their annual salary rather than their monthly salary, and many countries and regions have a statutory requirement for a 13/14 salary. If a monthly salary is communicated to the employee and the local 13/14 salary requirement is not known in advance, the actual salary that needs to be paid to the employee may be more than the organisation expects.Find out in advance if there are some statutory requirements for allowances in the destination country. For example, in some European countries (e.g. the UK and Spain), employers are required to provide home working expenses and allowances for employees who work from home, while in Brazil there are mandatory requirements for holiday bonuses and travelling allowances. Knowing these statutory requirements in advance can help organisations to better plan their budgets.
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13
2023.11

How to receive payment from private students in China?

In today's China, the number of private students is growing rapidly. These students often receive additional academic support and guidance through private tutors. However, an important question for private tutors is how to receive payment from these students. Here are some potentially useful tips to help you receive payments from private students in China. Sign a written agreement Before starting private tutoring, sign a written agreement with each student. This ensures that both parties have a clear understanding of key information such as the scope of the tutoring service, the price, the payment method, and the refund policy for incomplete sessions. A written agreement protects your rights and helps the student's parents better understand what they will have to pay. Determine payment methods At the time of signing the agreement, agree on an appropriate payment method with the parents. You can choose to pay online, such as Alipay, WeChat or bank transfer. If the parent prefers to pay in cash, you can collect the payment at an agreed time and place. Ensure that you confirm that parents have completed payment before the start of each session to avoid subsequent disputes. Provide invoices or receipts In order to run a private tutoring business legally and compliantly, you should provide parents with invoices or receipts. These documents prove that you have provided the service and are entitled to receive payment. If you don't have a formal business registration, you can simply write a receipt stating the service, price, date of payment and your signature. Maintain good communication Maintaining good communication with parents is key. After each session, check with parents to see how satisfied they were with the service and if they have any suggestions for improvement. In addition, update parents regularly about their child's progress so they know the value of the private tutoring you provide. Handling disputes Despite your best efforts to provide high quality private tutoring services and ensure that parents are satisfied, sometimes disputes may still arise. If this happens, try to have an open and honest conversation with the parent to find the best way to resolve the issue. If further help or mediation is required, consider seeking professional legal advice or support from relevant organizations. In conclusion, receiving payments from private students in China requires good communication and agreement management. By signing a written agreement, choosing the right payment method, providing invoices or receipts and maintaining good communication, you can ensure that your rights and interests are protected while providing a satisfactory private tutoring service to your students and parents.
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25
2023.10

The Truth about Foreigners' Salaries in China

Although there are many different reasons why foreigners come to work in China, the economy may be the main reason. Some people come out of urgent need because their homeland has almost no jobs, some come to earn attractive foreign salaries, and some know that their work speed in China is much faster than in China. But not all foreign nationals in China have equal wages. Let's take a closer look. 1. The Income Gap of Foreigners in China There are various types of foreigners in China. When teaching at a private English school in Shanghai, I worked with a retired American rancher and an Australian in his twenties. The former only wanted to have a unique experience in the Far East, while the latter was saving money for a property in his hometown. In the internet industry where I later switched careers, I met an SEO expert who was obsessed with Chinese culture. He worked as little as possible to spend time with his new bride, and there was also an online advertising manager who was poached by a headhunting company in the United States and couldn't wait to flee back in just six months. Due to the large number of people and the wide variety of foreigners, it is natural that the salaries of foreigners in China vary greatly. There is a huge wage gap in the education sector alone. Although some foreign teachers may find themselves struggling to make ends meet on only 15000 yuan or less per month, the income of high-quality teachers holding important education jobs in China in expensive private schools can reach 50000 yuan. I dare say that most teachers' salaries range from 25000 to 30000 RMB, and their exact positions within this range depend on location and experience, as well as their educational background. That is to say, when signing a contract, there is usually a lot of bargaining space, and overtime pay also has additional income. Many foreigners in other industries earn more. For example, full-time employees of large automotive, high-tech, chemical, engineering, pharmaceutical, and manufacturing companies can earn up to 100000 yuan per month in addition to attractive benefits such as housing subsidies, private education for children, vehicles and drivers, and private medical insurance. These positions are the holy grail for foreigners working in China, and foreigners are usually hired in their home country before being assigned to work overseas. 2、 The income gap between foreigners and locals in China Although not all foreigners have equal wages, compared to their Chinese counterparts, their wages are much more equal. For example, the salary of expat english teacher is usually three times that of local teachers. Although most Chinese people believe that foreign employees earn higher salaries than themselves, it is clearly best to remain humble and cautious about their own income. This difference can cause tension in the workplace, especially when your work hours are significantly shorter than those of local colleagues. 3、 Cost of living in China Although the cost of living in China continues to rise, compared to most similar cities in the West, China is still an outlier. The rent, transportation, dining out, and drinking here are still much cheaper than in the West. Everyone wants to reduce expenses, no matter where their income is, so whether you are a person with no, some, or many, you always feel that living in a cheaper country than you are accustomed to would be better. However, when we start feeling better, additional expenses can easily quietly increase. Perhaps you didn't include the club's weekly foot massage or bottle service in your budget at the beginning. By contrast, when you work in foreign currency and may even pay all the expenses with your phone, it's easy to not be sure how much money you've spent. Therefore, although many foreigners come to China for economic reasons, if you don't try to come to China at a low price, you may not find yourself saving a lot of money.
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11
2023.10

Shenzhen has extended the application deadline for the individual income tax.

Shenzhen has extended the application deadline for the individual income tax (IIT) subsidy for foreign and in-demand talent from September 30 to October 20, 2023. The city recently issued updated application guidelines and began accepting applications for the subsidy, which will be valid for one year. The IIT subsidy is available to high-end foreign talent and in-demand talent residing in the nine mainland cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). After a two-year hiatus due to the pandemic, the Guangdong Provincial Department of Finance instructed the GBA municipal governments to resume the IIT subsidy program in June. China's Ministry of Finance subsequently announced an extension of the program until the end of 2027. Shenzhen is currently the only city in the GBA accepting applications for the IIT subsidy for the 2021 and 2022 tax years, with released guidelines. Foshan and Guangzhou have published draft guidelines for public comment but have not yet finalized them or started accepting applications. Applicants must meet general eligibility requirements, including living and working in Shenzhen and belonging to specific categories such as permanent residents of Hong Kong and Macao, residents of Taiwan, foreign nationals, mainland Chinese returnees, or overseas Chinese with long-term residence abroad. They should also fulfill employment conditions, such as signing contracts with Shenzhen employers, being dispatched by overseas employers, providing independent personal services, or having worked in Shenzhen for at least 90 days within the applicable tax year.
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14
2023.09

Policies related to personal income tax for expatriates

More and more foreigners are working in China, and many of them would like to apply for Chinese permanent residence in China in the future. While applying for permanent residence in the post category has strict requirements on the applicant's salary and tax payment, the expatriate personal income tax policy is more complicated, so how to effectively prevent the tax risk so as not to affect the application for permanent residence in China in the post category? Below we share with you some of the risk points of expatriates' individual income tax policy and management, which expatriate taxpayers working in China can check against to avoid tax risks. I. General provisions on income from wages and salaries 1. Whether the foreigners who are required to pay tax have already declared and paid individual income tax on their income from wages and salaries paid both within and outside China; 2. whether expatriates who have resided in China for five years and have resided in China for one year in the sixth year have declared and paid individual income tax in China for their income from salaries and wages and other income derived from sources inside and outside China in accordance with the regulations; 3. whether the calculation of the expatriates' time of residence and working time within the territory is accurate, and whether the tax agreements (arrangements) and tax calculation formulas are applied correctly; 4. whether the wages and salaries earned by the dispatched personnel of foreign companies providing domestic enterprises with technical support, business management support and other labor services constituting permanent establishments in China have been declared and paid for individual income tax in China in accordance with the regulations; 5. If a foreigner serves or is employed by a company (including an affiliated company) and also serves as a director or supervisor, whether the director's fee or supervisor's fee obtained by the foreigner has been merged with the individual's salary income and declared for payment of individual income tax under the item of "income from salaries and wages"; 6. Whether the amount of non-taxable income (including the employer's full burden of tax, a fixed amount of tax, a proportional amount of tax, and tax in excess of the country of residence) has been converted into taxable income for tax reporting purposes; II. About bonuses and subsidies 1. whether the monthly bonuses, half-yearly awards, task completion awards, etc. obtained in the same month have been combined with the income from wages and salaries to be declared and paid as individual income tax; 2. whether the bonus of several months, half-yearly award, task completion award, etc. obtained in the month in which the tax liability for salary income is less than one month or in the month in which there is no tax liability has been declared as one month's income from salary and wages separately for individual income tax payment; 3. whether the year-end lump-sum bonuses, year-end double pay, year-end labor bonuses, etc. obtained by foreigners have been correctly calculated and declared for tax payment in accordance with the regulations; III. Others 1. Whether the contribution of a foreigner who only serves as a director or supervisor in a company (including an affiliated company) has been declared and paid under the item of "Income from remuneration for labor services"; 2. whether the enterprise has withheld individual income tax under the item of "income from remuneration for labor services" for the foreign personnel who provide independent personal services for the performance of the enterprise's obligations; 3. whether the dividend and bonus income paid by the non-foreign invested enterprise to the foreign personnel participating in the shares has been fully withheld and paid as individual income tax; 4. whether the transfer of retained earnings and capital surplus of a non-foreign invested enterprise to the share capital of an individual foreigner has been declared for payment of individual income tax in accordance with the regulations; 5. whether the transfer of equity interests in domestic enterprises by individual foreign shareholders has been declared for payment of individual income tax in accordance with the regulations.
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06
2023.09

Research Report on the Salary of Foreigners Working in China

1、 Introduction In recent years, with the rapid development of China's economy and the deepening of its opening-up policy, more and more foreigners have chosen to work in China. Understanding the salary situation of foreigners working in China is of great significance for policy makers, human resources professionals, and foreigners who are looking to work in China. This report aims to explore this issue by collecting and analyzing relevant data to explore the current salary situation, changing trends, and potential influencing factors of foreigners working in China. 2、 Method The data in this report comes from various channels, including official statistical data, research reports, and online data. After data collection, statistical analysis methods are used to process and analyze the data, in order to reveal the current situation and changing trends of salaries for foreigners working in China. 3、 The salary status of foreigners working in China According to the collected data, the salaries of foreigners working in China vary depending on industry, region, work experience, and other factors. On average, foreigners working in China earn slightly higher salaries than Chinese people with the same qualifications. However, this difference is gradually narrowing. From an industry perspective, there is a high demand for foreign talents in industries such as technology, finance, education, and healthcare, and foreign salaries are generally higher in these industries. In contrast, foreigners in industries such as services and manufacturing have relatively lower wages. From a regional perspective, first tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen have a high demand for foreign talents, and the salaries of foreigners in these regions are also relatively high. The wage levels in second tier cities have decreased compared to first tier cities, while the demand and wage levels in third tier cities are lower. From the perspective of work experience, foreigners with rich work experience often receive higher salaries than inexperienced foreigners. This trend is evident in various industries and regions. 4、 Analysis of influencing factors The salary of foreigners working in China is influenced by various factors. The following are several important factors: Market demand: Some industries have a high demand for foreign talents, such as technology, finance, education, and healthcare, resulting in relatively high salaries for foreigners in these industries. Regional differences: First tier cities have a higher demand for foreign talents, and the salary levels in these regions are also relatively high. The demand and wage levels in second and third tier cities have decreased. Work experience and skills: Foreigners with rich experience and advanced skills usually receive higher salaries. Policy support: The Chinese government has provided a series of policy support to attract foreign talents, such as work visas, residence permits, children's education, etc. These policies also have a certain impact on the salary level of foreigners. 5、 Conclusion and recommendations According to the findings of this report, the salaries of foreigners working in China vary depending on industry, region, work experience, and other factors. Although the average salary is slightly higher than that of Chinese people with the same conditions, this difference is gradually narrowing. In order to attract more foreigners to work in China, the government and enterprises need to take a series of measures: Enhance the recognition and recognition of foreign talents, and treat foreign talents with a more fair and open attitude. Provide better work and living environment, including support in housing, healthcare, education, and other aspects, to improve the job satisfaction and quality of life of foreign talents. Provide more vocational training and development opportunities to help foreign talents better adapt and integrate into China's work environment. Strengthen international cooperation and exchanges, and enhance foreign talents' understanding and identification with Chinese culture and society by organizing various activities and exchange projects. Through these measures, China can attract more foreigners to work, promote sustained economic development and social harmony and stability.
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31
2023.08

Foreigners's Salaries in China

Introduction: China's rapid economic growth and internationalization over the past few decades have attracted a significant number of foreigners seeking employment opportunities in the country. With a diverse range of industries and a growing demand for skilled professionals, foreigners are finding enticing prospects in various sectors. However, understanding the intricacies of foreigners' salaries in China is essential for both job seekers and employers to ensure fair compensation and a productive work environment. Factors Influencing Foreigners' Salaries: 1. Industry and Job Role: Salaries in China vary significantly based on the industry and job role. Skilled professionals in sectors such as technology, finance, and engineering tend to earn higher salaries due to the demand for specialized expertise. For instance, foreign IT specialists working for multinational companies may receive higher compensation compared to those in the service industry. 2. Qualifications and Experience: Education, qualifications, and work experience play a critical role in determining foreigners' salaries. Individuals with advanced degrees, professional certifications, or extensive experience in their field often command better pay packages. International professionals who possess unique skills not readily available in the domestic labor market might negotiate higher salaries. 3. Location: The city or region in which a foreigner works significantly affects their salary. Major metropolitan areas like Beijing, Shanghai, and Shenzhen generally offer higher salaries to attract talent. The cost of living and economic development of a city often correlate with salary levels. 4. Company Size and Reputation: The size and reputation of the employing company also impact salary offers. Multinational corporations or well-established domestic companies tend to offer more competitive compensation packages to attract skilled professionals. 5. Language Proficiency: Proficiency in the Chinese language can influence salary negotiations. Foreigners with strong language skills may find it easier to communicate, collaborate, and integrate into the work environment, potentially leading to better salaries. 6. Demand and Supply: The demand-supply dynamics of specific job roles and industries can affect salaries. If there's a shortage of qualified professionals in a particular sector, employers might offer higher salaries to attract and retain talent. Challenges and Considerations: 1. Local vs. Expatriate Packages: Some companies offer different compensation packages for local hires and expatriates. Expatriate packages might include benefits like housing allowances, language training, and international school fees, which can significantly impact the overall compensation. 2. Legal and Regulatory Factors: Foreigners working in China need to be aware of tax regulations, social security contributions, and other legal requirements that may impact their net earnings. 3. Cultural Sensitivity: Cultural norms surrounding discussions of salary can differ between China and other countries. Foreign job seekers should approach negotiations with cultural sensitivity and an understanding of local practices. 4. Negotiation Skills: Successful salary negotiation requires good communication and negotiation skills. Understanding the market value of one's skills and experience is crucial for securing a fair compensation package. Conclusion: Foreigners' salaries in China are influenced by a range of factors, including industry, qualifications, location, and company reputation. It's essential for both job seekers and employers to consider these factors to ensure fair and competitive compensation. As China's economy continues to grow and attract global talent, the landscape of foreigners' salaries will evolve, making it crucial for all parties involved to stay informed and adaptable.
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31
2023.08

What are the salaries for foreigners teaching English in China?

As of September 2021 to the best of my knowledge, salaries for foreigners teaching English in China vary by region, school type, teaching experience and educational background. Generally speaking, salary levels may be higher in large cities, while salaries may be lower in smaller cities or villages. Here are some general salary ranges for education jobs in China: 1. Big cities: In big cities such as Beijing, Shanghai, Guangzhou, etc., the salary range for expat English teacher may be around RMB 15,000 to RMB 30,000 per month, which may also depend on teaching experience and educational background. 2. small and medium-sized cities: In small and medium-sized cities, the salary range for foreigners may be between RMB 8,000 and RMB 20,000 per month. 3. Rural areas: In rural areas, salaries may be even lower, around RMB 5,000 to RMB 15,000 per month. It is important to note that these are only rough estimates and actual salaries may vary. Salaries will also be affected by the type of educational institution (international school, language training institution, etc.), the type of contract (full-time, part-time), and educational background. Salary packages for foreigners teaching English in China will also usually include benefits such as housing allowance and medical insurance. Given the amount of time that has passed, I would suggest that you check job boards, official websites of educational institutions, or speak with people who are doing similar work in China for more accurate and up-to-date information on salaries.
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31
2023.08

How to negotiate salary for foreigners when working in China?

Negotiating a salary in China as a foreigner is similar to negotiating in many other countries, but there are some cultural and practical considerations to keep in mind. Here are some steps and tips to help you navigate the salary negotiation process when working in China: 1. Research Local Standards: Before entering negotiations, research the typical salary range for your position and industry in China. This will give you a baseline to work from and help you understand the local market. 2. Cultural Awareness: Understand the cultural norms around negotiation in China. Generally, Chinese culture values modesty and humility, so it's important to strike a balance between advocating for yourself and being respectful. 3. Build Relationships: Relationship-building is crucial in Chinese business culture. Try to establish a positive rapport with your potential employer before discussing salary. Building trust can enhance your negotiation position. 4. Timing: The timing of your salary negotiation matters. It's often best to wait until you have received a formal job offer before discussing compensation. This shows that you're serious about the job and gives you a stronger position to negotiate from. 5. Prepare Documentation: Have a clear and concise documentation of your skills, qualifications, and accomplishments ready. Present how your skills and experience align with the role and how you can contribute to the company's success. 6. Speak Mandarin (if possible): If you can speak Mandarin, even at a basic level, it can demonstrate your commitment to adapting to the local culture and may give you an advantage during negotiations. 7. Consider Benefits and Perks: In addition to base salary, consider other benefits such as housing allowance, transportation, health insurance, and bonuses. These can significantly impact your overall compensation package. 8. Negotiation Etiquette: When it comes to discussing salary, it's important to be polite and patient. Avoid being overly aggressive or confrontational, as this might be counterproductive. 9. Present Your Value: Clearly articulate the value you bring to the company. Highlight your unique skills, experiences, and how they align with the company's goals. 10. Express Flexibility: Be open to some flexibility in your negotiation. This can be seen as a positive trait and may help create a more positive impression. 11. Consider Cost of Living: If you're moving to a high-cost city like Beijing or Shanghai, make sure to factor in the higher cost of living when negotiating your salary. 12. Seek Advice: If you know other expats or professionals working in China, consider seeking their advice or insights on negotiating salaries in the local context. 13. Seek a Win-Win: Remember that negotiation is a two-way street. Aim for an agreement that both you and your potential employer are satisfied with. 14. Follow Up in Writing: Once you've reached an agreement, make sure to get the details in writing. This will help prevent misunderstandings later on. Keep in mind that every situation is unique, and cultural norms can vary. It's important to approach negotiations with respect, adaptability, and a willingness to understand and align with local practices.
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31
2023.08

How to negotiate salary when working in China?

Negotiating salary as a foreigner working in China follows some general guidelines, but it's important to be aware that cultural norms and business practices can vary. Here are some steps to consider when negotiating your salary in China: 1. Research Local Salary Standards: Before starting negotiations, research the typical salary ranges for your industry, position, and location in China. This will give you a baseline understanding of what you can reasonably expect. 2. Understand Cultural Norms: Chinese business culture can be more reserved and indirect compared to Western cultures. It's common to approach negotiations with politeness and respect. Avoid appearing overly aggressive or confrontational. 3. Build Rapport: Relationship-building is crucial in Chinese culture. Establish a good rapport with the employer or hiring manager before diving into salary negotiations. Demonstrating your interest in the company and the role can go a long way. 4. Wait for the Right Time: In China, discussions about salary might not occur until the later stages of the interview process or even after a job offer has been extended. Be patient and let the employer initiate the salary conversation. 5. Express Your Value: When the time comes to discuss salary, focus on highlighting your skills, experience, and how you can contribute to the company's success. Clearly explain how your background aligns with the role's requirements. 6. Be Prepared to Justify Your Expectations: If you're aiming for a higher salary than what's typically offered, be prepared to provide solid reasons for your request. Highlight your unique qualifications or specialized skills that set you apart. 7. Consider Total Compensation: Keep in mind that compensation packages in China often include benefits beyond the base salary, such as housing allowances, health insurance, and bonuses. Factor in these elements when evaluating an offer. 8. Stay Open to Negotiation: While it's important to have a clear idea of what you want, be open to negotiation. Chinese employers might have their own constraints and considerations. Be prepared to find a middle ground. 9. Practice Humility: Demonstrating humility during negotiations is generally appreciated in Chinese culture. Avoid appearing overly self-centered or entitled, as it may create a negative impression. 10. Polite Language: Use polite and respectful language during negotiations. Avoid sounding demanding or forceful. Emphasize your enthusiasm for the role and your willingness to work collaboratively. 11. Consult Local Contacts: If you have friends or colleagues who are familiar with Chinese business culture, seek their advice on negotiation tactics and what is considered appropriate behavior. 12. Consider Hiring a Local Representative: In some cases, hiring a local representative or consultant who is familiar with Chinese business practices can be beneficial. They can assist you in navigating the negotiation process effectively. Remember, each situation is unique, so it's essential to adapt your approach based on the specific company, industry, and individuals you're dealing with. Overall, demonstrating professionalism, cultural awareness, and a willingness to work together can contribute to a successful salary negotiation in China.
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31
2023.08

How do foreigners negotiate salary when working in China?

Negotiating salary in China, like in many other countries, involves understanding the local culture, norms, and practices. Here are some tips for foreigners negotiating salary when working in China: 1. Research Local Salary Standards: Before entering negotiations, research the average salary range for your position and industry in the specific city or region of China where you'll be working. This will give you a baseline to start your negotiations. 2. Understand Cultural Norms: In Chinese culture, negotiations are often approached with a sense of politeness and humility. Being overly aggressive or pushy can be seen as disrespectful and may harm your chances of getting a favorable outcome. Maintain a respectful and patient demeanor during negotiations. 3. Build Relationships: In China, relationships (guanxi) are highly valued. Building a good rapport with your potential employer before entering into salary negotiations can work in your favor. Networking and demonstrating your commitment to the company's success can create a positive impression. 4. Consider Benefits and Perks: In addition to the base salary, consider the overall compensation package, including benefits, bonuses, housing allowances, transportation, and other perks. These can play a significant role in your decision-making process. 5. Initiate Discussions Tactfully: During the interview process, if the topic of salary doesn't come up naturally, you can inquire about the company's salary structure or express your excitement about the opportunity and your hope for a fair compensation package. 6. Express Flexibility: Demonstrating flexibility in your negotiations can be appreciated. If the employer presents a slightly lower offer than you expected, consider discussing the potential for salary adjustments based on performance evaluations or after a probationary period. 7. Provide Justification: When discussing your desired salary, be prepared to justify your expectations based on your qualifications, experience, and the value you'll bring to the company. Highlight any unique skills or experiences that make you a strong candidate. 8. Learn Some Basic Mandarin Phrases: While many business professionals in China speak English, learning a few basic Mandarin phrases can show your commitment to integrating into the local culture and your willingness to communicate effectively. 9. Consider Cost of Living: Different cities in China have varying costs of living. If you're negotiating with a company in a city with a higher cost of living, you can tactfully mention this when discussing compensation. 10. Be Patient: Negotiations might take time in China, as decisions may involve multiple layers of approval. Avoid rushing the process and display patience throughout. 11. Consult Local Contacts: If you have any local friends, colleagues, or mentors, consider seeking their advice on salary negotiation strategies specific to the Chinese context. 12. Professionalism Matters: Present yourself as a professional throughout the negotiation process. This includes your appearance, communication, and overall demeanor. Remember that every negotiation is unique, and factors such as your industry, the company's size, and your own qualifications will influence the outcome. The key is to approach negotiations with respect, cultural sensitivity, and a willingness to find a mutually beneficial agreement.
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31
2023.08

Navigating Salary Negotiations as a Foreigner Working in China

Entering a new job in a foreign country is both an exciting and challenging endeavor. For foreigners working in China, negotiating a competitive salary requires a blend of cultural awareness, interpersonal skills, and understanding of local norms. While salary negotiation principles are universal, there are nuances to consider in the Chinese context. Here's a guide on how foreigners can navigate the salary negotiation process when working in China. 1. Research the Local Landscape Just as in any negotiation, knowledge is power. Begin by researching the average salary range for your position and industry in the specific city or region of China where you'll be working. This information provides you with a solid foundation for your negotiations and ensures that your expectations align with local standards. 2. Embrace Cultural Sensitivity In Chinese culture, negotiations are often approached with humility and politeness. Aggressive tactics can be counterproductive and may damage your relationship with potential employers. Demonstrating respect and understanding of local customs is crucial. This includes addressing your potential employer with the appropriate title and using polite language throughout the negotiation process. 3. Build Relationships In China, the concept of guanxi, or building relationships, holds significant importance. Before entering negotiations, focus on developing a positive rapport with your potential employer. Networking events, informational interviews, and showing genuine interest in the company can create a favorable impression and potentially influence the negotiation process. 4. Timing Is Key While discussing salary during an interview is common in Western cultures, in China, it's often more appropriate to let the employer initiate this topic. However, if the subject hasn't naturally come up, you can express your enthusiasm for the position and inquire about the company's compensation structure or expectations. 5. Consider the Full Package Salary negotiations in China often extend beyond the basic salary figure. Evaluate the entire compensation package, including bonuses, benefits, housing allowances, healthcare coverage, and other perks. Sometimes, the value of benefits can make a significant difference in your overall satisfaction with the offer. 6. Exhibit Flexibility Demonstrating flexibility can be advantageous. If the initial offer is slightly lower than expected, consider discussing the possibility of salary adjustments based on performance evaluations or achievements. This showcases your commitment to contributing value to the company over time. 7. Substantiate Your Value Prepare a compelling case for your desired salary. Highlight your qualifications, experience, and skills that make you a strong candidate. Emphasize how your expertise aligns with the company's needs and objectives. 8. Language and Cultural Considerations While many business professionals in China are proficient in English, learning some basic Mandarin phrases can show your genuine interest in integrating into the local culture. It's a sign of respect and can help establish a stronger connection with your potential employer. 9. Address Cost of Living China's cities vary widely in terms of cost of living. If you're negotiating in a city with a higher cost of living, you can mention this in a diplomatic manner to help contextualize your salary expectations. 10. Patience is a Virtue Negotiations in China may take longer than expected due to hierarchical decision-making processes. Be patient and avoid rushing the negotiation. Demonstrating patience is a positive trait and can strengthen your position in the eyes of your potential employer. 11. Seek Local Advice If you have local friends, colleagues, or mentors, consider seeking their guidance on navigating salary negotiations in China. They can provide insights into the cultural nuances and expectations specific to the region. 12. Professionalism Prevails Throughout the negotiation process, professionalism is paramount. Dress appropriately, maintain open and respectful communication, and display a positive attitude. These factors contribute to the overall impression you make. Conclusion Negotiating salary as a foreigner in China involves balancing universal negotiation tactics with cultural sensitivity and local norms. By conducting thorough research, demonstrating respect, building relationships, and showcasing your value, you can approach negotiations with confidence. Remember that the goal is to reach a mutually beneficial agreement that aligns with your qualifications and contributes to your successful integration into the Chinese professional landscape.
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31
2023.08

How do foreigners negotiate salary when working in China?

Here I will share some general facts and a few tips on how to negotiate the best possible salary when teaching ESL in China. Cold hard facts First and foremost, if you're joining anything other than a public school, you have to realise that you're being hired by an organisation where education is sold for profit. That means your qualifications as an educator, your attitude and your experience are all secondary to you being a foreigner, especially if you're from a country where English is considered the native language. These companies will use the fact that you're a foreign native speaker of English for marketing purposes and justification for, in many cases, insanely high tuition fees. This can work in your favour, as you can pick up a job with very little experience, but it also makes you highly replaceable. Your attributes Your first and foremost attribute will be your foreign origin and your fluency in English. If you have both of these locked down, you'll be in demand. That being said, more credible companies are genuinely looking for competent expat english teacher, so the more experience and qualifications you have, the more money you can expect. Having a CELTA, a degree in education or multinational experience teaching different age groups are all valuable in the salary negotiation process. Skill up Teaching is like cooking, in that everyone thinks they can do it well but most suck at it. Consequently, English teachers are very easy to find in most major Chinese cities, which again makes you replaceable and drives down your bargaining power. One way around this is to start teaching higher level specialty subjects. Test preparation in the form of TOEFL, SATs, or the GRE requires more preparation on your part, but generally commands higher salaries There are also various liberal arts programs with topics like economics and computer programming in universities and international programs that pay much better than an average ESL gig. Location, location, location Location is very important when teaching ESL in China. A good salary in a rural town will last all of six seconds in a major city like Shanghai. So, while it's easier to find work in China's big cities, you need to be negotiating for a monthly salary in the higher teens and up to make sure you can cover living costs and still have something left. If a rural job is more appealing, be aware that they generally offer lower starting salaries. However, you can negotiate them up in light of the fact that they're in the middle of nowhere, which makes recruitment difficult. Know your worth The most important advice I can give is quite simple: ALWAYS NEGOTIATE. I've seen scores of good teachers in China take the worst positions in the worst companies simply because they were unwilling to negotiate. If you take an offer at face value, the only person to blame for your low salary, bad work conditions and lack of benefits is you. Know your own worth and do research into your market value. If you were willing to relocate all the way to China, you should be willing to shop around a little. Most ESL companies in China will ask for your desired salary at the very first stage. This is a sleazy technique to try and get you to underbid the price they're willing to pay. When you hear this question, therefore, you need to state a ridiculously high number. If they refuse to negotiate from there or won't state their real intended salary, then find another company. The first rule of negotiating in any field is being willing to walk away from the entire offer. If you have the flexibility to choose any company you want, leverage that in the negotiating process to walk away if you have to. Know the market Big name-brand ESL training centers are useful foot-in-the door companies for those teaching ESL in China for the first time. These companies generally provide good initial support and more experienced visa staff to help you with what can be an all-out hellish experience. However, these companies also pay the worst. Like really — their salaries are generally pathetic for entry level teaching positions when compared to the market. They also have spreadsheets with set limits for teacher salaries and will refuse to negotiate for higher pay. Remember, your experience as a teacher doesn't matter as much as your foreign face. So, if you want to make a decent amount of money teaching ESL in China, you're better off looking for a mid-range or small school that's willing to negotiate on salary and hours. When to negotiate Really, the only time to negotiate on salary is when you're a new teacher signing your first contract. Most Chinese companies will refuse or be very resistant to any sort of raise, other than whatever they offer across the board annually. Unless you teach a specialty subject that is hard to replace or have some other sort of leverage, negotiate for a salary you're happy with at the start. Remember, you have the most bargaining power at the beginning when it's easy for you to leave and they need someone to fill the position. If after your first year you want more money, there's no harm in asking your current school. You may find that you're better off signing with a new one, however. Salary traps You need to avoid any school where student ratings might affect your salary. Whether you're a decent teacher or not, some kids are going to dislike you. I don't care if you're Mary Poppins, Kung Fu Panda and Gandhi rolled into one, there will always be a student who has it in for you. Some ESL companies in China use negative student surveys as a reason to not give you more money during negotiations. Similarly, if they offered you a performance bonus based on reviews or sales, there's an overwhelming chance that they will find a way to not pay you. The only money you're guaranteed to get is your normal base salary in your contract. You should consider any promises beyond that as bull plop and unimportant in the negotiating process. Finally, beware of “holiday pay.” Many companies will have extended breaks for Spring Festival or during the summer break, during which they will only pay you a fraction of your normal salary. Keep this in mind when choosing a school and don't be afraid to try and negotiate up.
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