Compensation
Onboarding Website
a) Retirement Compensation
Faculty members who are newly recruited will receive retirement compensation in an amount of 4% of base salary during the 2nd year of employment, 6% of base salary during the 3rd year of employment, and 8% of base salary during the 4th year of employment. The retirement compensation will be capped at 8%.
b) Payroll Guidelines
- Currency and Exchange Rate
Following the State Foreign Exchange Administration Regulations of People’s Republic of China, an employee’s salary must be paid in RMB (Chinese Yuan). To issue the payroll in RMB as the salary is priced in USD, WKU will adopt the official published foreign exchange rate (middle rate) of the People’s Bank of China five business days prior to the pay date.
- Pay Periods and Dates
Faculty will be paid on the 5th day of each month for the previous month. If the 5th day of that month is a Chinese public holiday/weekend, the salary will be paid on the preceding business day before such public holiday/weekend. Before the beginning of each academic year, a detailed pay schedule will be published.
Pay dates and exchange rate dates may change, as they are subject to the University’s holiday and vacation schedules. When a change occurs, notification will be properly delivered in advance.
Faculty should note that the first payment occurs in the second month of employment, so it is strongly suggested that new faculty arrange to have sufficient funds in reserve for the first month of employment.
- Withholding Taxes
According to Chinese Individual Income Tax Law, PRC individual income tax shall be withheld monthly. However, a faculty member can apply for PRC tax exemption for a limited period if he/she is eligible. WKU will provide the Instruction of Applying for PRC Tax Exemption and assist faculty members with applying.
- Direct Deposit
Your paycheck will be deposited directly into a mainland Chines e bank account. WKU will help faculty to open an account from the cooperative bank for consistent services in the future. Faculty will be responsible for immediately notifying the Finance Office regarding any changes in bank information. Each faculty member may only select one Chinese bank account for direct deposit.
c) Conversion and Wire Transfer
To convert RMB income into foreign currency and wire to a foreign bank account, you will need to bring your passport, tax certificate, and employment contract to the bank that receives your monthly direct deposit from WKU. WKU will cooperate with the bank to offer assistance to those who have language barriers at an exclusive service spot in the bank or to set up a service spot on campus for faculty.
There is no commission fee for converting the currency. However, the commission charge for each international wiring is 0.1% of the amount, with a minimum of 50 RMB and a maximum of 260 RMB, plus the one-time telegram fee of 150 RMB. Therefore, subject to current rates, the total service fee for each transaction is between 200 RMB and 410 RMB.
