The Importance of Paystub in China
A pay stub is a document that’s given to an employee with each paycheck. It shows their total wages earned for a set period. This might be from a salary, hourly wages, or commission. Pay stubs also list any tax withheld and personal deductions made. This includes insurance and pension contributions.
The paystub is a mandatory document that employers must provide to the employees each month to highlight the structure of the salary, taxes, and deductions. The problem was that the client company never gave the paystub to their employees, exposing the company to the risk of being non-compliant with the Chinese law.
After one employee of the client company told HROne that the employer was not giving the paystub to the employees, we activated immediately to solve the situation, offering advice to both employer and employee.
We shared the policy that regulates the paystub requirements, reminding the employer that not giving the paystub is actually illegal, and it can bring problems for the company with the Chinese law.
We also offered the employer the possibility to use their platform to easily manage the paystubs for the employees, making sure to be compliant with Chinese regulations.
The representative of the client company was very happy after we communicated with them about the policy because this showed them that we are always available to support the relationship with the employees, and proactively offer solutions to their problems.