Negotiating salary and benefits in China

If you are employed in China you will be under a contract. The contract will spell out expectations for both sides to abide by. The Chinese tend to use it as a guideline rather than a carved in stone document, however. That is because 99% of any arbitration regarding the contract will be ruled in favor of the Chinese national.

I asked a long-time friend of mine who was a Judge in Shenzhen why this was the case. He told me that foreigners come as guests. While we are in China we are at the pleasure of our host country. And as such, we will always be at a disadvantage. The Chinese expect this in other nations. Just like how they have been treated by the USA, and Britain as second class citizens. That has manifested in the laws that exist today in China.

Afterall, to this day, Ivy League colleges in the USA, such as Harvard, and Yale routinely subtract 50 points of the SAT scores of Asians and Chinese students... you know for "diversity".  The Chinese have had to live with this for centuries.

If you want to work in China be prepared to play by Chinese rules.

[1] Define your salary and the currency it is to be paid in. Define which bank it is to be deposited in and under what name the bank account is listed under.

[2] You are responsible for all international tax liabilities unless stated otherwise.

[3] List holidays, as well as those of your home nation.

[4] List bonuses and payment schedule and time limits.

[5]  List any educational perks and education for your children.

[6]  List food and housing considerations.


Make sure that you lay everything out and discuss it with your employer and all will be fine.

Vannrox sets things out quite clearly, I would like to add that you need to be very thick skinned for exactly the reasons he states above, if it is in the contract your employer might not like it. But if it is not in the contract you it will be very difficult to get "it" and "keep getting it" later.

Ask for everything you want and start from there.
Holidays are important China don't tend to do floating/discretionary  holiday allowances, you will get the national holidays by default - ask for some weeks of flexible holiday on top of this, make sure it is paid. Also consider asking for a flight home once per year.
I would ask for a salary on the basis of after local income tax - but keep checking your company are paying it accordingly
Don't forget to define your hours of work many companies work 6 or 7 days
If you are bringing your family think about education bills, what if the nearest international school is in the next city? Will you commute during the week - will your company provide transport?

ALready mentioned above
read your contract carefully
They always make two contracts one in Chinese one in English or your language some time they write different points in a different contract.  So better get it read by some lawyers
one thing you should ask or I should say demand is health insurance benefit

Everyone above has stated some very good points and if you work in a large city (Beijing, Shanghai, Guangzhou) you can do these things easily...however if you are coming to work as a teacher be prepared to accept less.

I hire foreign teachers for an after-school program in the north-east of China and we are NOT a 1st or 2nd tier city so we can't compete with those salaries, so you need to consider other perks.

Find an employer with a foreign manager who speaks English (native speaker is preferred) and will be able to help you.  Negotiate but be reasonable.  Keep in mind other perks like sick time, over-time pay, demo or assessment bonus pay for helping to get new students, scholarships for continuing education so you can become a better teacher.  Does the company pay for all documents once you come to China?  Do they provide help for daily living needs (translator for going to the bank, or getting an apartment)?  Will they advance a loan if you were to be in an accident, or cause one?  Will they help you in the case of an emergency (life happens).

Our company does all of this and more, but we can't offer the salary or housing that you could get in a 1st or 2nd tier city.  However, our cost of living isn't as high either.  You have to take all of these things into consideration.

Finally, are you coming to China to "strike it rich" or to "sight-see", or are you coming to get a job and maybe even make a difference...you need to be very clear on your goals and honest as well.  China can offer you opportunity if you are willing to be flexible.  I have lived and worked here for 12 years and I will most likely stick around another 12 if my health permits.  (I am not a spring or even summer chicken, LOL).  Spell it out clearly what you expect and then if you are lucky you may find the perfect match.  Put things clearly before you come but be prepared for changes after you are here...welcome to China.

Finally, have something of value to offer, if you do then you will find your contract and job will work out well...if however all you want is to come and "take" you may be sorely disappointed by the outcome.

Already mentioned above
read your contract carefully
They always make two contracts one in Chinese one in English or your language some time they write different points in a different contract.  So better get it read by some lawyers
one thing you should ask or I should say demand is health insurance benefit.

As stated in other discussions, all employment in China is by contract, read the contract carefully (the English translations are horrible).  You usually have to give a long notice of intent to terminate, but, remember, just as the courts won't uphold the contracts against an employer, they also won't uphold the contract in favor of the employer, considering that they view foreigners guests that can leave at any time.  But, most employers will honor the contract terms.

Remember, once you are working for the company though they will have a tendency to not give you the bonuses or scheduled raises you expect.  This is very common, so ask for more in advance to compensate for this inevitability. 

Especially after the last year, I would ask for adjustments due to currency fluctuations.  I signed my contract and the exchange rate was 6.08 rmb to the dollar, now it is 7.1 rmb to the dollar.  I pay many bills in American; so, in essence I have about 15% less this year to pay those bills with.

A final thing I would recommend is to include "expat healthcare".  You are not eligible to use the Chinese healthcare system; so, if you get sick you will have to pay for the visit out of your pocket.  Although healthcare is relatively cheap in China, I would still recommend that you have an expat insurance plan just in case something serious happens you are covered.  You can make sure this benefit is included in your contract in most cases (although I didn't think about it when I signed my contract; so, I pay for it out of my pocket).