Hire in China

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.

Onboard your talent in China

in 10 minutes

Power icon

Accelerated onboarding

Fast-track your talent onboarding while ensuring 100% compliance with local regulations.

Calculator icon

Net salary calculator

Calculate net salary post deductions and compare it with the salary in other countries instantly.

Reading icon

Guidance & payroll management

Receive process support by an experienced team of experts & pay your talent on time and in their local currency

People icon

Hire in China through an

EOR

Easily onboard your remote talent in China through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of China

Calendar remove icon
Cost of living index

$$ (80 of 139 nations)

Euro icon
Currency

Renminbi (¥, CNY)

Dollar bill icon
Payroll frequency

Monthly

Basic facts

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.

Capital

Beijing

Official language/s

Mandarin Chinese

People icon
Population

1.41 billion (2022 est.)

US dollar icon
VAT - standard rate

6%

There are seven national holidays celebrated over a number of days in China.

The national holidays mentioned below are valid for the year 2024.

January 1New Year’s Day (元旦)
February 10-17Spring Festival (春节)Movable
April 4-6Ching Ming Festival (清明节)Movable
May 1-5Labor Day (劳动节)
June 10Dragon Boat Festival (端午节)Movable
September 15-17Mid-Autumn Festival (中秋节)Movable
October 1-7National Day Holiday (国庆节)

The approximate time for sharing the contract with an employee in China is 6 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.

  • Social security contribution rates in China vary per location and local regulations.
  • The employment contract must be in the Chinese language, though a translated English version is common.
  • The length of paternity leave, maternity leave, and marriage leave in China vary per specific locale.

Employers and employees must contribute to five insurances and one fund, or “五险一金”, including:

  • Pension insurance (基本养老保险);
  • Medical Insurance (基本医疗保险);
  • Unemployment insurance (失业保险);
  • Work-related injury insurance (工伤保险);
  • Maternity insurance (生育保险);
  • Housing provident fund.

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 0.16-1.52% 0% 0.2-1.9% 0%
Housing provident fund 5-7% 5-7% 5-12% 5-12%
Total 31.66-35.02% 15.5-17.5% 31.5-40.2% 15.5-22.5%

 

Working Hours

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.

Overtime

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.

Probation Period

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
Termination Notice Period

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.

Working Hours

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.

Overtime

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.

Probation Period

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
Termination Notice Period

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.

Book a free demo to access this information

Employers and employees must contribute to five insurances and one fund, or “五险一金”, including:

  • Pension insurance (基本养老保险);
  • Medical Insurance (基本医疗保险);
  • Unemployment insurance (失业保险);
  • Work-related injury insurance (工伤保险);
  • Maternity insurance (生育保险);
  • Housing provident fund.

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 0.16-1.52% 0% 0.2-1.9% 0%
Housing provident fund 5-7% 5-7% 5-12% 5-12%
Total 31.66-35.02% 15.5-17.5% 31.5-40.2% 15.5-22.5%