* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Renminbi (¥)


CST (GMT +8)

Employment Cost


Annual Leave

5 days

In-demand Specialties*
Technology, Accounting And Finance, Hospitality

The Ultimate Guide to Hiring Employees in China

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In China

Employing in China requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in China with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in China quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Given its status as the second-largest global economy and home to the world's largest population, China offers companies an extensive and advantageous market with abundant opportunities, particularly in manufacturing, IT, and software sectors.

China's workforce experiences consistent growth, fueled by a rising number of college graduates each year. With over 640,000 individuals obtaining master's and doctoral degrees from Chinese educational institutions, international companies have access to a substantial pool of skilled talent.

China has made significant strides in business-friendly policies, as reflected in its 31st position on the World Bank's Ease of Doing Business ranking for the years 2019-2020. This marks a substantial improvement for the country, positioning it among the most improved markets globally for conducting business.

The nation's economic landscape benefits from an expanding network of trade and investment agreements. China is actively engaged in 23 free trade agreements with 26 countries or regions, fostering bilateral and multilateral cooperation and strengthening its position in global commerce.


Fundamental Aspects of Employment in China

By law, employers must provide employees with a written employment agreement within the first month of starting work. Part-time employees follow different regulations, and while fixed-term contracts are allowed, indefinite terms require completion of a mutually agreed-upon assignment. The contract must include the following information:

  • Identification of both parties
  • Starting date and duration of employment
  • Workplace location and designated working hours
  • Job description, position, duties, and responsibilities
  • Base salary (including compensation and benefits)
  • Total allocated holidays
  • Provision of social insurance
  • Occupational safety and workplace protection measures
  • Adherence to additional legal requisites
  • Probation periods, confidentiality, and the provision of training (if applicable)

Probationary Period in China

The probationary period for indefinite contracts in China can extend to 6 months, while for fixed-term contracts, it ranges from 1 to 2 months, depending on the length of service.

Working hours in China

In China, the typical working hours constitute 8 hours per day and 40 hours per week, with a maximum weekly limit of 45 working hours.

Overtime in China

Under China's labour laws, employees receive 1.5 times their regular salary for work beyond the 8-hour workday, with Saturday and Sunday work compensated at double the standard rate. However, employees are limited to 3 hours of overtime on weekdays and a maximum of 36 hours per month.

Navigating Key Aspects of Payroll in China

China has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

1 January - 31 December

Fiscal Year in China

1 January - 31 December is the 12-month accounting period that businesses in China use for financial and tax reporting purposes.

Payroll Cycle in China

The payroll cycle in China is usually monthly, with employees being paid on the last working day.
14.5 CNY p/h

Minimum Wage in China

The minimum wage for employees in China is typically 14.5 CNY per hour, amounting to ~2,320 CNY per month for a typical 40 hour work week.

Minimum wages and salaries in China

The national minimum wage in China varies by region. The most common minimum wages are 2,320 CNY in Beijing and 2,590 CNY in Shanghai.

Bonus Payments in China

It is a common practice in China to provide employees with a 13-month or even a 14-month salary, disbursed during the Lunar New Year or Spring Holiday, as stipulated in the employment contract.

Comprehensive Overview of Employment Taxes in China

Understanding the tax obligations for both employers and employees is crucial when operating in China's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in China.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 36.00% on top of the employee salary in China.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In China, the typical estimation for employee payroll contributions cost is around 22.50%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

The individual income tax is computed using progressive rates in China, where the tax rates rises as the gross annual income increases.

Tax Rate Income Bracket

Pension in China

In private companies, male employees typically retire at the age of 60, while female employees retire at the age of 55. Employers are obligated to enrol their employees in mandatory pension insurance (基本养老保险), with funding provided by both parties. The employer contribution rates vary by location, with Shanghai and Beijing having employers contribute 16% and employees contributing 8%.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in China tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in China

When it comes to terminating employment in China, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Termination procedures in China vary based on the province and region. Employers are not permitted to carry out at-will terminations beyond the probation period; instead, terminations must be justified. To provide an example, the following are acceptable termination instances in Shanghai:

  • Employee resignation (with notice)
  • Mutual consent
  • Employer-initiated termination (based on probationary period, objective reasons, disciplinary measures, or job unsuitability)
  • Contract expiration

Notice Period

In China, standard notice periods are generally established at 30 days. In cases where notice is not given, employers may opt for payment in lieu. Similarly, employees are obligated to provide their employers with a 30-day notice before resigning.

Severance Pay

In China, mandatory severance pay depends upon eligibility and is contingent on the employee's tenure:

  • Less than 6 months – half a month's salary
  • More than 6 months – one month's salary for each year of service (capped at three times the minimum wage and not exceeding 12 months)

Annual Leave Entitlements and Company Policies in China

The annual leave entitlement in China is 5 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in China

China observes the following 7 national holidays spread across several days:

Holiday Date

Paid Time Off in China

Maternity Leave in China

Paternity Leave in China

Sick Leave in China

Bereavement Leave

Marriage Leave

Parental Leave In China

China's Benefits Built Into Playroll

Competitive benefits package in China

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in China's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In China

Make your benefits package in China a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Pension
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in China

Playroll allows you to provide localized benefits for employees in China within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in China create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for China

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in China.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!