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* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
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.
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:
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.
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.
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.
The national minimum wage in China varies by region. The most common minimum wages are 2,420 CNY in Beijing, 2,690 CNY in Shanghai, 2,300 CNY in Cuangzhou and 2,360 CNY in Shenzhen.
Although not mandatory, 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.
The individual income tax is computed using progressive rates in China, where the tax rates rises as the gross annual income increases.
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.
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:
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. If the employer decides to terminate the employment during the probation period, they must give the employee at least 3 days' notice.
In China, mandatory severance pay depends upon eligibility and is contingent on the employee's tenure:
China observes the following 7 national holidays spread across several days:
Both employers and employees in China contribute to the following five insurances and one fund:
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 and each country has different requirements and legislation. As of August 2024, non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.
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