China aims incentives at highly-skilled workers to prevent brain-drain China aims incentives at highly-skilled workers to prevent brain-drain

China aims incentives at highly-skilled workers to prevent brain-drain
16 Apr 2018

Chinese state-owned enterprises should assume a leading role in improving how highly-skilled workers are treated to encourage them to stay in the country, according to Tang Tao, vice-minister of the Ministry of Human Resources and Social Security.

According to ECNSa recently-issued guideline called for more incentives to be introduced for skilled staff in order to prevent a brain-drain. Suggestions included boosting their incomes and social benefits and improving their standing within the company.

During the briefing, Tang said that China has a working population of 776 million, 165 million of whom are skilled workers and only 47 million are “highly-skilled workers”. This situation had created a serious imbalance between demand and supply in the labour market, he added.

As a result, the new guideline states that the gross payrolls of all state-owned enterprises should lean toward highly skilled workers, and average salary increases should not be lower than those given to administrative staff, said China.org.

In a bid to further encourage employers to improve the benefits of their skilled workers, the guideline also encourages them to establish a salary system that reflects job value, personal ability and work performance. It also advised organisations to subsidise complementary allowances for technicians.

Meanwhile, Beijing's tax authorities have launched an online service catering to 66 tax-related items and administrative procedures. They include collecting taxpayers’ details and enabling workers to file for tax credits and receive specially-issued invoices. Small-scale taxpayers will also be able to make changes to their VAT declarations.

The local tax authorities have likewise set up an individual income tax service platform to undertake taxpayer authentication, online searches and the printing of certificates of individual income tax payment. The platform also undertakes tax filing for taxpayers whose annual income exceed 120,000 yuan (US$19,000) and equity transfer. 

The authorities are likewise allowing a number of banks to provide tax services through their mobile apps. They are also aiming to help out inexperienced new businesses by introducing a packaged service to cover 10 tax-related procedures.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

Chinese state-owned enterprises should assume a leading role in improving how highly-skilled workers are treated to encourage them to stay in the country, according to Tang Tao, vice-minister of the Ministry of Human Resources and Social Security.

According to ECNSa recently-issued guideline called for more incentives to be introduced for skilled staff in order to prevent a brain-drain. Suggestions included boosting their incomes and social benefits and improving their standing within the company.

During the briefing, Tang said that China has a working population of 776 million, 165 million of whom are skilled workers and only 47 million are “highly-skilled workers”. This situation had created a serious imbalance between demand and supply in the labour market, he added.

As a result, the new guideline states that the gross payrolls of all state-owned enterprises should lean toward highly skilled workers, and average salary increases should not be lower than those given to administrative staff, said China.org.

In a bid to further encourage employers to improve the benefits of their skilled workers, the guideline also encourages them to establish a salary system that reflects job value, personal ability and work performance. It also advised organisations to subsidise complementary allowances for technicians.

Meanwhile, Beijing's tax authorities have launched an online service catering to 66 tax-related items and administrative procedures. They include collecting taxpayers’ details and enabling workers to file for tax credits and receive specially-issued invoices. Small-scale taxpayers will also be able to make changes to their VAT declarations.

The local tax authorities have likewise set up an individual income tax service platform to undertake taxpayer authentication, online searches and the printing of certificates of individual income tax payment. The platform also undertakes tax filing for taxpayers whose annual income exceed 120,000 yuan (US$19,000) and equity transfer. 

The authorities are likewise allowing a number of banks to provide tax services through their mobile apps. They are also aiming to help out inexperienced new businesses by introducing a packaged service to cover 10 tax-related procedures.

 Emma Woollacott

Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.

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