Five Insurances and One Fund: Reading a Chinese Payslip — Epoche A2
To: New staff From: Human Resources Subject: Why your net pay is smaller than your offer A Chinese payslip removes six items before income tax: five insurances and one fund. They are listed below in the order in which you will meet them. Medical insurance. You will meet this one first. It pays part of your hospital and pharmacy bills, and a card carries the money set aside for you. The housing fund. Money is taken from your pay and matched by the company. It waits in your name and can later help you rent or buy a flat. Pension. Usually the largest line on the slip, and the one you will meet last. Unemployment insurance. A small payment for a while if you lose the job through no fault of your own. Work injury and maternity insurance. These two are paid by the company, not taken out of your pay. Rates differ from city to city, so ask us for your own figures. Many people think the gap between gross and net pay is only tax. It is mostly these six. Little by little, much is gathered — and part of that housing fund is company money that nobody should leave behind.