Chief Representative of RO in China could be Chinese people or foreigners. But if Chief Representative is a Chinese, he must hold a certification issued by a human resource company which provides service for foreign companies and also regulated by the government. RO could hire Chinese employees or do business by itself. But the human resources management must be controlled by human resources organization which is regulated by the government.

Generally speaking, in Beijing and Shanghai, the wage of an employee who works with English is as follows: The salary of a SEC is no less than 3000RMB per month, an accountant or a legal consultant is no less than 4000RMB per month, a marketing sales is no less than 5000RMB per month, a department manager is no less than 8000RMB per month. Different requirements determine different salaries. RO should bear the employees' social insurance premiums and housing fund if Chinese are hired. This amount is equal to 50% of an employees' salary and partially paid by the employee, but most part of it should be born by the employer. Details are as follows:

I. Social insurance( take Ceiling 2008 for example)(implemented in line with relevant policies of the state)

SN.

Item

Ceiling(2008)

Pay by enterprise

Pay by individual

Charge

Proportion

Amount

Proportion

Amount

1

Pension insurance

9,966.00

20.00%

1,993.20

8.00%

797.28

2,790.48

2

Unemployment insurance

9,966.00

1.50%

149.49

0.50%

49.83

199.32

3

Medical insurance

9,966.00

10.00%

996.60

2.00%+3 Yuan

202.32

1,198.92

4

 Work injury insurance

9,966.00

0.50%

49.83

-

-

49.83

5

Maternity insurance

9,966.00

0.80%

79.73

-

-

79.73

6

Housing fund

9,966.00

12%

-

8% or 10%

-

 Payment by separate account
Subtotal of social insurance Remark: .Enterprise shall set the ceiling based on the average salary of personnel of last year.
.ceiling of social insurance shall be adjusted in every April in line with relevant policies of the state
.ceiling of housing fund shall be adjusted in every July in line with relevant policies of the state
 4,318.28

Chinese government do not have the requirement of paying social insurance premiums for foreign employees nor regulations about the salary of Chief Representative. However, this salary should be correspond with the practical minimum that is required by the government and the Taxation Bureau. This minimum is no less than the incomes of a foreign employee from foreign countries which is equal to 15,000RMB per month, a Chinese employee's incomes per month.