Adapted from ISR Member FORUM
With new tax regulations set to go into effect January 1, my school in China will begin TAXING benefits as if it were regular salary. Housing allowance, child tuition & yearly travel reimbursement could be taxed at a rate of 30% or more. That’s a solid hit on my paycheck!
Teachers were surprised to say the least. Due to China’s new tax regulations, contracts signed in March will soon have us earning less take-home than 2-3 years ago, despite raises. Our school is desperate to keep teachers, but many are moving on.
The non-taxable tuition for dependents & housing allowance was a BIG benefits package incentive. With that missing, along with continued border restrictions & the related insanity of government rhetoric, many of us feel the contracts for next year aren’t as attractive as they should be.
With this in mind, here’s a couple Questions for discussion:
1. What approach is your school taking to alleviate the new tax hits?
2. My school wants us all to stay, so what would be a good proposal to HR that would help keep us interested?
3. Have you heard of any bonuses or incentives other schools are offering in an effort to keep contracts attractive?
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