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All about a Chinese Hukou and How It Is Influential for Your Business 

Chinese Hukou and how it is influential for your business- HROne

This article provides essential information about Chinese Hukou and how it is influential for your business

  • The system of Hukou
  • Being an employer, are we required to help our employees get a local Hukou?
  • Using a third-party labor-sourcing company

Being an employer in China, you must know all about a Chinese Hukou and how it is influential for your business.

The System of Hukou

China’s Hukou system is a family registration program that serves as a domestic passport, regulating population distribution and rural-to-urban migration. It mostly provides access to medical insurance and public schooling, but only in the area in which the Hukou is located. So if someone with a Hukou in Shanghai is injured in Guangzhou, they cannot use their medical insurance unless they go to a hospital back home in Shanghai. Likewise, if they move to Beijing but leave their Hukou in Shanghai, their children cannot get public schooling anywhere but in Shanghai, and the grade requirements for their children to enter Beijing universities will be much higher. Of course, if they have money, they can pay for private education and treatment.

When a child is born, it is registered in its parents’ Hukou account. When he/she goes for higher education, they can get themselves transferred to the university’s Hukou account, or continue with their parents’ Hukou account. Transferring to the university’s collective account will make it easier for him/her to get a job in the same city as that university after graduation. When he/she gets a job, after graduating, they can transfer from the university’s Hukou account to their new company’s collective Hukou account, and continue to transfer it over to other companies’ collective Hukou accounts with each new job.

Being an employer, are we required to help our employees get a local Hukou?

This is not compulsory, but if you do it can be very helpful for your employees. If your employee has just graduated from a university, an employer can help to transfer the employee’s Hukou from the university’s account to their new company’s collective Hukou account.

Using a third-party labor-sourcing company

If your company does the hiring procedures directly by themselves, they will have to keep tabs on employees and perform all the employee benefits procedures by themselves. If they use the employee benefits services of an HR services outsourcing company like HROne you can leave all the nitty-gritty details of employee benefits to them and concentrate on your core business.

How HROne can be beneficial to your business

HROne’s service can handle the complete employee benefits for your company in compliance with the local policies and also can take care of the visa for your company’s expatriate employees. We can directly hire employees for a company not having a legal entity in China by our specialized Employee Leasing / Talent dispatching services.

2019-04-29T07:57:47+00:00May 25th, 2016|Human Resources & Payroll|