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Employer of Record China | Hiring Options in China

employer of record china

Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
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


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.

Time zoneUTC+08:00 (CST) (Only uses Xinjiang Time unofficially in Tibet and Xinjiang)
Total Time zones1
Working hours per week42
Working weekMonday–Friday
Typical hours worked8
Personal Tax filing deadlineNA
Financial Year1st January to 31st December
Date formatyy/mm/dd
CurrencyRenminbi (Yuan) (CNY)
VATthe lower rate is 6%, the middle rate is 9%, the high rate is 13%

Employer Payroll Contributions in China

Medical Insurance10% to 12%
Occupational Injury Insurance19% to 20%
Unemployment Insurance1% to 1.5%
Maternity Insurance0.5%
Housing Funds5 to 12%
Total Employment Cost35% to 42%

Employee Payroll Contributions in China

Medical Insurance2%
Housing Funds5% to 12%
Pension Insurance8%
Unemployment Insurance0.5%
Total Employee Cost15% 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 Wageno national minimum wage rate in China. applicable for its territory.

Payroll Cycle in China

Payroll CycleMonthly
13th Salarynot 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%

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