In China employment law, a compensation structure is an employer’s policy that determines how workers are paid and at what pay rates. Workers are paid for their contribution to the business through a variety of systems, but the policy must be fair. In today’s China, the compensation structure is determined by the marketplace, so that their earnings are determined by the performance of the economy.

Workers are paid based on a negotiated amount, which will include a monthly salary and annual bonuses. Statutory requirements such as social security contributions, worker protection costs, and benefits are not part of the compensation structure. The compensation structure is regulated by laws including the China Employment Act, the Minimum Wage Rules, and the Wage Payment Temporary Rules.

The government issues guidelines and recommendations for what is considered a reasonable wage for each job type in each region.