It is known that each country has pay and benefits practices that differ from other countries due to the difference in the economy and government of each country. However, similarities may arise due to the interaction between nations in the global market (Martocchio, 2017). In this discussion, I look to compare the compensation in the United States and China. The currency in China is the Renminbi, while the US is the US dollar. The US dollar has more value than the Renminbi in the international market, being approximately six times more valuable. Their purchasing power in their respective local markets is pegged. Therefore, their compensation is relative to each other if compared.
In both countries, compensations are in the form of salaries and wages, with commissions and bonuses provided depending on an individual's profession. The hourly wage in China is set at 1.73 dollars, while in the US, it is 7.25 dollars (NATIONMASTER, 2022). Therefore, the compensation in China is lower than that of the United States. The United States does not have medical care benefits for all employees, while in China, medical care and maternity benefits are provided (asinta, 2022). This is an important sector that puts China ahead of the US in that sector, as the population's welfare is taken care of. Most of all, the other benefits are similar in both countries. This entails retirement benefits, unemployment benefits, and workers' compensation. The employees in the United States of America have paid vacation days as a benefit, where they get vacations catered for by their employers. This is not the case in China, as there are no paid vacation days. It is also important to note that both nations have the same working hours, set at forty. Therefore, the population must earn whatever they earn with the same amount of work time.