The 13th month bonus in China refers to a bonus equal to one month’s salary that is usually paid at the onset of Chinese New Year. This 13th month bonus is not mandatory unless explicitly stated in the labor contract upon signing. A 13th month bonus depends on the company’s performance as well as the employee’s performance. It is possible for employees to receive an even higher bonus (14th or even 15th month bonus) depending on these factors.

Employees in China are entitled to annual leave days based on their work experience. After working for their employer for 1 year. Employees who have worked less than 10 years are entitled to 5 days paid annual leave. Employees who have between 10 and 20 years of experience are entitled to 10 days paid annual leave. Employees with over 20 years of experience are entitled to 15 days of paid annal leave.

Individual income taxes In China are based on a progressive tax brackets rate:

Bracket	Annual Taxable Income (RMB)	Tax Rate (%)	Quick Deduction
1	No more than 36,000	3	0
2	Between 36,000 and 144,000	10	2,520
3	Between 144,000 and 300,000	20	16,920
4	Between 300,000 and 420,000	25	31,920
5	Between 420,000 and 660,000	30	52,920
6	Between 660,000 and 960,000	35	85,920
7	More than 960,000	45	181,920

Social benefits in China are divided into two categories: Five mandatory social insurances – These include pension insurance, medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance. Housing fund – The purpose of this is to allow employees to save money to buy a house in China.