Per diem allowance paid at your Co's for the short term travellers to China?

Kindly let me know the per diem allowance paid at your company for short-term travelers to China.

Thanks for the quick response. Since it is a business trip, if a company doesn't pay the appropriate per diem, the person may refuse to travel. Therefore, I am looking into how other companies are paying their travelers. Is it paid in USD or INR?

Per diem is decided by the daily cost incurred by an employee while working in a different location. It includes the expenses with relation to the standard of living of the city and business project valuation. You may calculate the amount with respect to the land where the employee is. For example, it's in INR for Indian employees, whereas it would be in USD for employees in the US. MNCs maintain a common sheet on USD to create a parity. Do arrange for an initial amount within the office which the employee would collect before leaving. Thereafter, you may allow the employee to use the Diner's, Amex, or whichever credit card is issued to the employees who are traveling. The employee needs to be issued a letter mentioning the project date, amount of per diem allowed. Later on, the employee needs to apply for reimbursements through your ERP and pay the credit card bills.

Cost of Living in Shanghai, China. Prices in Shanghai.

Xpatulator - cost of living index calculator

http://www.libraries.rutgers.edu/rul..._diem_2010.pdf

Per Diem Calculator, IATA Airport Codes Linked to Cities

I would appreciate it if you could let me know the official website of the Chinese government for legal per diem charges and travel policy.

Thank you.

You may consider the reports published by 'The Economist' while framing your policies. These are a few white papers published by the legal authorities.

Government website for working in China

I need urgent help. I have to depute some of my employees in China for a project with a reputed OEM there for more than one year. My problem is that this is being done for the very first time in my organization. What I want to know is:

1. What are the different payment terms by which they can be paid salaries?

2. How will the work permit be obtained?

3. Should the salaries be paid in foreign currency or should some deputation allowances be given?

Is there a way we can pay the employees partly in Indian rupees and partly in Chinese RMB?

4. What will the salary be if paid in foreign currency? Should it be exactly equal to the existing one or equal to the currency of the country they are being sent to?

5. How will the income tax terms apply to them?

6. Are there any minimum compensation laws that apply to the deputed employees?

I want to understand everything from A to Z regarding this matter, including complete income tax laws, work permit laws, and payment terms for the deputed employees.

A quick response to this would be appreciated.

Thanks & Regards,

Akshay

Dear Akshay,

You are sending your employee on an international assignment to China. The employee needs to sign an international employment contract.

OEM will send an invitation letter along with the employment contract to the Embassy of China in India to issue a VISA to your employees.

You need to cover these areas as they are standard in an international contract:

Accompanying Dependents

Immigration

International Healthcare Plan

Shipment & Storage of Household Goods

Language Training

Family Separation Assistance

Host Housing

Education Assistance

Spousal Assistance

Base Salary

Payroll

Social Security

Tax Equalization

Tax Reconciliation and Tax Advisory

Standard Hour Work

Quality of Living/Location Premium

Subsistence Allowance

Host Location Leave and Emergency Leave

Statutory Leave and Annual leave

Company Pension Plan

Life Insurance, Medical Examination, and Emergency Assistance

International Health Care Plan

Change in Number of Accompanying Dependents

Repatriation Assistance

Termination of Assignment

Termination of Employment

You can pay salary in any currency wholly and partly, but Income tax will be applicable to the total income as per the rules of the land where the employee is working.

There is no idea regarding minimum compensation, but for India, it is a minimum of 25,000 US dollars per annum.

For more updates, you may contact us.

Shaik,

In India, the cap of 25000 USD has since been removed.

[Times Of India - Cos free to hire expats, no cap on salary and number](http://articles.timesofindia.indiatimes.com/2010-07-08/india/28290423_1_employment-visa-stelmakh-skilled-foreigners)

pon