China, officially the People’s Republic of China, is the largest of all Asian countries with the largest population in the world. It has 33 administrative units directly under the central government, consisting of 22 provinces, five autonomous regions, four municipalities, and two special administrative regions. It is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in China.
Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in China
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China, officially the People’s Republic of China, is the largest of all Asian countries with the largest population in the world. It has 33 administrative units directly under the central government, consisting of 22 provinces, five autonomous regions, four municipalities, and two special administrative regions. It is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in China.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in China planning:
There are seven national holidays celebrated over a number of days in China.
The national holidays mentioned below are valid for the year 2026.
| January 1 - 3 | New Year’s Day (元旦) | |
| February 15 - 23 | Spring Festival (春节) | Movable |
| April 4 - 6 | Ching Ming Festival (清明节) | Movable |
| May 1-5 | Labour Day (劳动节) | |
| June 19 - 21 | Dragon Boat Festival (端午节) | Movable |
| September 25 - 27 | Mid-Autumn Festival (中秋节) | Movable |
| October 1 - 7 | National Day |
The approximate time for sharing the contract with an employee in China is 3 business days, assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
Employers and employees must contribute to five insurances and one fund, or “五险一金”, including:
The following table summarizes the monthly contribution rates for Shanghai and Beijing:
| Shanghai | Beijing | |||
| Benefits | Employer Rates | Employee Rates | Employer Rates | Employee Rates |
| Pension insurance | 16% | 8% | 16% | 8% |
| Medical and maternity insurance | 10% | 2% | 9.8% | 2% |
| Unemployment insurance | 0.5% | 0.5% | 0.5% | 0.5% |
| Work-related injury insurance | 0.2-1.9% | 0% | 0.2-1.9% | 0% |
| Housing provident fund | 5-7% | 5-7% | 5-12% | 5-12% |
| Total | 31.7-35.4% | 15.5-17.5% | 31.5-40.2% | 15.5-22.5% |
Employees work no more than eight hours per day and 44 hours per week, and employers must ensure that employees have at least one day off each week.
Due to the needs of production and operation, the employer may extend the working hours after consultation with the trade union and the workers, generally not exceeding one hour per day.
If the working hours need to be extended for special reasons, under the condition of ensuring the health of workers, the extended working hours must not exceed three hours per day and 36 hours per month.
Overtime is paid at 150% of employees’ salaries.
If the contract is less than three months or only for completing a specific task within a specific term, no probationary period is allowed.
For contracts of at least three months, the probation period varies from one to six months depending on the length of the employment contracts:
| Length of Employment Contracts | Probation Period |
| 3 months and more but less than 1 year | Up to 1 month |
| 1 year or more but less than 3 years | Up to 2 months |
| 3 years or more and indefinite term | Up to 6 months |
The termination notice period depends on whether or not the employee is on probation as follows:
| Probation Status | Employer Notice Period | Employee Notice Period |
| During probation | Not allowed* | 3 days |
| Post probation | 30 days or pay in lieu of notice* | 30 days |
*However, if the employee is proved to be unqualified for employment during the probation period, employers may dismiss them without notice.
**The pay in lieu must be based on the employee’s previous monthly salary.
Employees work no more than eight hours per day and 44 hours per week, and employers must ensure that employees have at least one day off each week.
Due to the needs of production and operation, the employer may extend the working hours after consultation with the trade union and the workers, generally not exceeding one hour per day.
If the working hours need to be extended for special reasons, under the condition of ensuring the health of workers, the extended working hours must not exceed three hours per day and 36 hours per month.
Overtime is paid at 150% of employees’ salaries.
If the contract is less than three months or only for completing a specific task within a specific term, no probationary period is allowed.
For contracts of at least three months, the probation period varies from one to six months depending on the length of the employment contracts:
| Length of Employment Contracts | Probation Period |
| 3 months and more but less than 1 year | Up to 1 month |
| 1 year or more but less than 3 years | Up to 2 months |
| 3 years or more and indefinite term | Up to 6 months |
The termination notice period depends on whether or not the employee is on probation as follows:
| Probation Status | Employer Notice Period | Employee Notice Period |
| During probation | Not allowed* | 3 days |
| Post probation | 30 days or pay in lieu of notice* | 30 days |
*However, if the employee is proved to be unqualified for employment during the probation period, employers may dismiss them without notice.
**The pay in lieu must be based on the employee’s previous monthly salary.
Employers and employees must contribute to five insurances and one fund, or “五险一金”, including:
The following table summarizes the monthly contribution rates for Shanghai and Beijing:
| Shanghai | Beijing | |||
| Benefits | Employer Rates | Employee Rates | Employer Rates | Employee Rates |
| Pension insurance | 16% | 8% | 16% | 8% |
| Medical and maternity insurance | 10% | 2% | 9.8% | 2% |
| Unemployment insurance | 0.5% | 0.5% | 0.5% | 0.5% |
| Work-related injury insurance | 0.2-1.9% | 0% | 0.2-1.9% | 0% |
| Housing provident fund | 5-7% | 5-7% | 5-12% | 5-12% |
| Total | 31.7-35.4% | 15.5-17.5% | 31.5-40.2% | 15.5-22.5% |
WorkMotion provides Employer of Record (EOR) services in China through its established partner network, giving your company a compliant path to hire in-country without setting up a Wholly Foreign-Owned Enterprise (WFOE).
Employment contracts in China must be concluded in Standard Chinese. While bilingual versions can be provided, only the Chinese-language version is legally binding.
WorkMotion’s partner network generates locally compliant contracts in Standard Chinese, covering all mandatory terms required under the Labor Contract Law of the People’s Republic of China.
The written contract must be provided no later than the employee’s first working day. Failure to do so triggers double wage penalties.
WorkMotion handles contract drafting and execution before day one, removing that exposure from your team entirely.
Social security is compulsory for all foreigners legally employed in China, and it is the employer’s responsibility to register and remit contributions within 30 days of issuing employment documents.
WorkMotion’s partner registers each new hire with the local social insurance bureau and housing fund authority in the city where they are employed.
China’s employee benefits regulations vary by city: social insurance rates, housing fund contributions, and tax deductions differ across cities such as Beijing, Shanghai, Shenzhen, and Chengdu.
WorkMotion accounts for these city-level variations, so contributions are calculated and filed correctly from the first payroll cycle.
China’s social security system is built around the mandatory framework known as “Five Insurances and One Fund” (五险一金). This statutory requirement consists of five social insurance programs and the Housing Provident Fund, forming a comprehensive social protection package.
The five insurances cover:
The total combined employer contribution for the five social insurances in Shanghai is approximately 26–27% of the employee’s salary, depending on applicable work injury rates.
WorkMotion’s partner calculates gross-to-net salary, applies the correct city-specific contribution rates, and enrolls employees in all required programs before the first pay date.
In China, payroll involves more than salary calculation. It includes statutory deductions, social contributions, tax reporting, and compliance with working hours.
EORs manage gross-to-net calculations, submit employer and employee contributions, and file monthly tax reports to local authorities, ensuring compliance across all provinces and cities.
WorkMotion’s partner withholds Individual Income Tax (IIT) at the applicable progressive rate, remits employer and employee social contributions to the relevant city bureaus, and issues compliant payslips, all on a monthly cycle in Chinese Yuan (CNY).
Beyond statutory minimums, WorkMotion’s partner can support supplementary benefits that help you compete for senior talent in China’s major hiring markets.
Common supplementary benefits include:
WorkMotion advises on what is market-standard in your employee’s city and role level, so your offer is competitive without creating compliance exposure.
China’s employment regulations are frequently updated at both national and city level.
When rules like this change, the EOR updates its contracts and payroll engine automatically, without the client needing to track every local human resources bureau circular.
WorkMotion monitors regulatory changes and updates employment terms, contribution rates, and payroll calculations accordingly, so your China hires remain compliant without your HR team tracking every local circular.
For most companies hiring one to a handful of employees in China, EOR through WorkMotion’s partner network gets you to first hire in days, not months. Here is how the two paths compare:
| Factor | WorkMotion EOR | China WFOE Setup |
| Setup cost | No entity setup cost; per-employee monthly fee | Professional fees, notarization, translation, and compliance services can range from $3,000–$8,000+, excluding registered capital requirements |
| Time to first hire | Days from signed agreement | On average, the full China WFOE setup timeline ranges from 6 to 12 weeks for most consulting and trading companies, and longer for manufacturing |
| Ongoing legal exposure | Compliance responsibility sits with WorkMotion’s licensed partner | Full employer liability rests with your entity; ongoing tax, audit, and HR compliance is required |
| Ongoing admin burden | Payroll, social insurance, IIT filing, and HR administration are handled by WorkMotion’s partner | Monthly accounting, tax filings, social security administration, and labor bureau reporting are managed internally or outsourced |
| Exit flexibility | Wind down employment without entity deregistration | The deregistration process, if you decide to exit, can be lengthy and complex |
EOR fits companies that need to hire quickly, test the China market, or maintain a small team without the overhead of a permanent legal structure.
If your goal is to establish a long-term footprint, gain full operational control, and repatriate profits, setting up a registered Chinese entity is the right choice.
WorkMotion can help you evaluate which path makes sense for your hiring timeline and growth plans. Our EOR vs. entity setup guide walks through the key decision points in detail.
China’s employment framework has specific rules that catch foreign companies off guard, not because the rules are obscure, but because they work differently from what most European and US HR teams expect.
Here are the compliance gaps that come up most often.
Employment contracts in China must be concluded in Standard Chinese. While employers can provide a bilingual version if needed, only the original Chinese-language version is legally binding.
Foreign companies that issue English-only contracts, or treat the English version as the governing document, have no enforceable agreement under Chinese law.
WorkMotion’s partner generates contracts in Standard Chinese, with bilingual versions available for employee clarity.
Employers must provide a written labor contract no later than the employee’s first working day. Failure to sign a timely contract triggers double wage penalties.
Many foreign employers assume they have a 30-day grace period. The penalty clock starts immediately.
WorkMotion ensures contracts are signed before the employee’s start date, not after.
An employer must, within 30 days from the date a foreign employee obtains their employment permit, complete social insurance registration for that employee. Missing this window creates back-payment liability and potential fines.
Failure to participate in China’s social security system may lead to serious penalties, such as fines equivalent to 100%–200% of overdue payments and additional legal consequences.
WorkMotion’s partner handles registration as part of the standard onboarding process. It is not a separate step you need to track.
Foreign employers often apply a single national rate across all employees.
China’s employee benefits regulations vary by city: social insurance rates, housing fund contributions, and tax deductions differ between cities like Beijing, Shanghai, Shenzhen, and Chengdu.
Employers must tailor their benefits packages to comply with the local regulations of each city where they have employees. A company with employees in both Shanghai and Shenzhen is operating under two different contribution frameworks simultaneously.
WorkMotion’s partner applies the correct city-level rates for each employee’s location.
China’s Personal Information Protection Law (PIPL) sets out general rules for processing and cross-border transfer of personal information.
A number of provisions, including obligations imposed on data processors and restrictions on cross-border transfer, will have significant impact on multinational corporations’ HR activities, including recruitment, performance monitoring, and background checks.
Foreign employers who route China employee data through their global HRIS without a lawful transfer mechanism are exposed to PIPL enforcement risk.
WorkMotion’s partner operates in compliance with China’s data residency requirements and advises on compliant data handling for cross-border HR workflows.
Employees in China cannot be terminated unilaterally by companies. The “at will” employment policy does not apply in China.
Every company operating in China should be aware of the termination rules and regulations. Failure to comply with these rules can result in penalties, employee payments, and employee reinstatement.
Foreign employers that follow their home-country termination practices in China face reinstatement orders and back pay liability.
WorkMotion’s partner manages termination procedures in accordance with the Labor Contract Law, including required documentation and statutory severance calculations.
In 2025, the Supreme People’s Court issued guidance reinforcing that so-called “996” schedules are unenforceable and that waivers of overtime pay are void, regardless of what the contract says.
Overtime is paid at a statutory premium:
Companies that have historically relied on informal extended-hours expectations need to ensure their employment terms and payroll calculations reflect the current legal position.
A B2B SaaS company headquartered in Germany, the Netherlands, or the UK wants to hire a Mandarin-speaking customer success manager or regional sales lead to support Greater China accounts.
Setting up a WFOE for a single hire is not viable. The timeline alone would cost them the candidate.
WorkMotion’s EOR services in China let them onboard that hire through a compliant employment structure in days, with locally valid contracts, payroll in CNY, and full social insurance coverage from day one.
China is the world’s second-largest economy and home to a deep talent pool of more than 770 million workers, with world-class expertise in engineering, manufacturing, e-commerce, and digital services.
European and US tech companies, particularly in AI, fintech, and e-commerce, use WorkMotion’s China EOR services to hire senior engineers and product specialists without competing only in their home labor markets.
For companies facing long vacancy times in specialized roles, China’s talent depth is a strategic advantage, and EOR removes the entity barrier that would otherwise make it inaccessible.
If you are also exploring hiring across the wider Asia-Pacific region, WorkMotion’s Japan country page covers EOR employment in Japan under a comparable partner-network model.
A growing SME with 50–300 employees has a team member who has relocated to China, or needs to formalize an existing arrangement that has outgrown its original structure.
WorkMotion’s China EOR services provide a compliant employment framework for employees already working in-country, handling the social insurance registration, IIT withholding, and contract formalization that informal arrangements typically lack.
For HR directors managing cross-border teams across multiple countries, consolidating China employment through WorkMotion reduces the number of local vendors and compliance frameworks to track.
Use the WorkMotion Country Explorer to compare hiring costs, talent availability, and compliance requirements across all markets where your team operates.
China’s employment framework is detailed, city-specific, and enforced, from the 30-day social insurance registration deadline to the strict contract requirements under the Labor Contract Law.
Getting it right from day one matters and requires a partner with local knowledge and licensed infrastructure to handle it properly.
WorkMotion provides China EOR services through its established partner network, covering compliant contract generation in Standard Chinese, city-specific payroll and social insurance administration, IIT withholding, and ongoing compliance monitoring, so your team can focus on the hire, not the paperwork.
Whether you are placing your first employee in Shanghai or building a regional team across multiple Chinese cities, WorkMotion gives you a compliant, fast path to employment without a WFOE.
To estimate the full-employment cost for your hire in China before you commit, use the WorkMotion Employment Cost Calculator.
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Yes, but the compliance requirements differ. Chinese nationals are enrolled in the standard Five Insurances and One Fund framework from day one. Foreign nationals legally employed in China are also required to participate in social insurance, with registration completed within 30 days of the employee obtaining their employment permit. WorkMotion’s partner network handles both employment types, applying the correct registration process and contribution structure for each.
China’s Labor Contract Law caps probation periods based on contract length: up to one month for contracts of one year or less, up to two months for contracts between one and three years, and up to six months for contracts of three years or longer. During probation, the employee’s salary cannot be less than 80% of the agreed post-probation salary or the local minimum wage, whichever is higher. WorkMotion’s partner structures probation terms within these statutory limits and ensures salary floors are met from the first payroll cycle.
It can. China’s Personal Information Protection Law (PIPL) restricts cross-border transfers of personal information and imposes specific obligations on how employee data is collected, stored, and processed. Multinational companies that route China HR data through a global HRIS without a lawful transfer mechanism, such as a standard contract or passing a security assessment, face enforcement risk. WorkMotion’s partner operates within China’s data residency requirements and can advise on compliant data handling for cross-border HR workflows before you go live.
Statutory paid annual leave in China is tied to length of service: employees with one to ten years of service are entitled to five days per year, those with ten to twenty years receive ten days, and those with twenty or more years receive fifteen days. Beyond annual leave, employers must account for statutory public holidays (eleven days per year), sick leave, maternity leave (a minimum of 98 days nationally, with extended entitlements in many provinces), and paternity leave, which varies by city. WorkMotion’s partner applies the correct leave entitlements for each employee’s location and ensures payroll reflects statutory obligations accurately.
Yes. Social insurance contribution rates, housing fund contribution rates, and certain tax deductions are set at the city level, not nationally. A company with employees in Shanghai and Shenzhen is simultaneously operating under two different contribution frameworks, and applying a single blended rate to both creates underpayment or overpayment risk. WorkMotion’s partner calculates and remits contributions at the correct city-specific rates for each employee’s registered work location, so your payroll remains accurate across a distributed China team.
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