Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Welcome to the EOR (Employer of Record) in China page, where you will find comprehensive information on various aspects of employment and hiring practices in China. From payroll cycle and employer contributions to background checks and termination procedures, this page covers essential topics such as hiring employees, contractors, and expats, along with important considerations such as employment contracts, employee benefits, social security, leave policies, work permits, and personal income tax. Whether you are exploring the Chinese market or seeking guidance on managing your workforce in China, this page will provide valuable insights to help navigate the complexities of employment in the country.
Hiring Options in China
Employee
Indefinite, fixed-term, full-time or part-time. Note that, after 2 consecutive fixed-term contracts, the employee may be entitled to an indefinite-term contract.
Independent contractor
It is uncommon for independent contractors to be engaged directly. Such a relationship is likely to be considered de facto employment.
Agency worker
Labor dispatch arrangements are becoming increasingly regulated in terms of treatment of labor dispatch workers and the numbers that can be hired within a single workplace. Because of this, labor dispatch arrangements are becoming a less attractive hiring option.
The rules are more relaxed for representative offices as they cannot hire local staff directly and must therefore rely on agencies.
| Overview | |
| Continent | Asia |
| Country | China |
| Time zone | UTC+08:00 (CST) (Only uses Xinjiang Time unofficially in Tibet and Xinjiang) |
| Total Time zones | 1 |
| Working hours per week | 42 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | NA |
| Financial Year | 1st January to 31st December |
| Capital | Beijing |
| Date format | yy/mm/dd |
| Currency | Renminbi (Yuan) (CNY) |
| VAT | the lower rate is 6%, the middle rate is 9%, the high rate is 13% |
Employer Payroll Contributions in China
| Employers | |
| Medical Insurance | 10% to 12% |
| Occupational Injury Insurance | 19% to 20% |
| Unemployment Insurance | 1% to 1.5% |
| Maternity Insurance | 0.5% |
| Housing Funds | 5 to 12% |
| Total Employment Cost | 35% to 42% |
Employee Payroll Contributions in China
| Employees | |
| Medical Insurance | 2% |
| Housing Funds | 5% to 12% |
| Pension Insurance | 8% |
| Unemployment Insurance | 0.5% |
| Total Employee Cost | 15% to 23% |
As an employer in China, it is essential to understand the various employer contributions required by law. These contributions are aimed at providing social security benefits and other welfare programs to employees. Here are the key employer contributions in China:
- Medical Insurance: Employers are required to contribute to the Medical Insurance scheme, which helps cover employees' medical expenses. The contribution rate typically ranges from 10% to 12% of the employee's monthly salary. The specific rate may vary depending on the location and local regulations.
- Occupational Injury Insurance: Employers are responsible for contributing to the Occupational Injury Insurance scheme, which provides compensation and medical care in case of work-related injuries or accidents. The contribution rate usually falls between 19% and 20% of the employee's salary.
- Unemployment Insurance: Employers must contribute to the Unemployment Insurance scheme, which provides financial support to employees who have lost their jobs. The contribution rate typically ranges from 1% to 1.5% of the employee's salary.
- Maternity Insurance: Employers are required to contribute to the Maternity Insurance scheme, which supports female employees during their maternity leave. The contribution rate is usually fixed at 0.5% of the employee's salary.
- Housing Funds: Employers are obligated to contribute to the Housing Fund (公积金, "gōngjījīn" in Chinese), which helps employees with housing-related expenses. The contribution rate varies depending on the location and local policies, ranging from 5% to 12% of the employee's salary. It's important to note that the exact rate can differ across different regions in China.
These employer contributions are typically calculated based on a percentage of the employee's salary and are deducted directly from the payroll. It is crucial for employers to accurately calculate and remit these contributions to the relevant authorities in a timely manner to ensure compliance with the law.
It's worth noting that the specific contribution rates mentioned above are general guidelines, and the actual rates may vary based on the specific region, industry, and other factors. Employers should stay updated with the latest regulations and seek professional guidance to ensure compliance with the specific employer contribution requirements in their operating location within China.
Minimum Wages in China
| Minimum Wage | |
| Minimum Wage | no national minimum wage rate in China. applicable for its territory. |
Payroll Cycle in China
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | not a government mandate |
Income Tax Slabs in China
| Income Tax | |
| Up to 1,500 yuan | 3% |
| 1,500 - 4,500 yuan | 10% |
| 4,500 - 9,000 yuan | 20 % |
| 9,000 - 35,000 yuan | 25 % |
| 35,000 - 55,000 yuan | 30 % |
| 55,000 - 80,000 yuan | 35% |
| Over 80,000 yuan | 45% |
East Asia: EOR China | EOR Japan | EOR South Korea | Mongolia